QN.1=On March 31 2020, the adjusted year-end account balances of Pacific West Company were as follows:

Accounts Payable

$32,500

Equipment

$140,000

Accounts Receivable

26,000

Interest Revenue

4,400

Accumulated Depreciation

24,000

Merchandise Inventory

52,500

Depreciation Expense

8,000

Rent and Utilities Expense

77,000

Cash

7,000

Salaries Expense

236,000

Cost of Goods Sold

599,700

Sales

1,010,000

Sue Roberts, Capital

133,000

Sales Discounts

2,7,700

Sue Roberts, Withdrawals

30,000

Required: Prepare, in good form, a classified Balance Sheet. Pacific West Company uses the perpetual inventory method. You will need to calculate the new balance for the capital account.

QN.2=The March 31, 2019 balance sheet of The Kalakaua Corporation had Accounts Receivable of $460,000 and a credit balance in Allowance for Doubtful Accounts of $33,000.During the year ended March 31, 2020, the following transactions occurred: sales on account $1,250,000; sales returns and allowances, $72,000; collections from customers, $1,130,000; accounts written off $29,000; previously written off accounts of $4,000 were collected.

REQUIRED:

a)What is the balance of Accounts Receivable at March 31, 2020?(3 marks)

b)Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 1.5% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020?(Show calculations.) (4 marks)

Date

Account Titles and Explanations

Debit

Credit

c)Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense.It determines that uncollectible accounts are expected to be $31,400.What is the adjusting entry at March 31, 2020?Assume the March 31, 2020 balance of Accounts Receivable is $495,000 and Allowance for Doubtful Accounts has an existing balance of $4,000 (dr).(Show calculations)(5 marks)

Date

Account Titles and Explanations

Debit

Credit