Question #2 (14 marks) A summary of the December 31st Accounts Receivable aged listing for Simmers Ltd. indicated the following information: Total Accounts Receivable Category % Uncollectible $55,000 Current 1% $23,000 1 30 days past due 3% $24,000 31 60 days past due 7% $12,000 Over 60 days 15% As at December 31st, the Allowance for Doubtful Accounts has a DEBIT balance of $200 before adjustments have been made. The balance shown in the over 60 days category includes an amount of $3,000, which is known to be uncollectible because the customer has filed for bankruptcy. Included in the Current category is an income tax refund receivable in the amount of $2,300, expected to be recovered in 90 days. Also included in the Current category is a $4,200 account, which represents an IOU from the companys president for money loaned to him. Required:

1. Prepare any necessary year end adjusting and reclassification entries with respect to the above information, on the assumption that the company uses the aged listing of accounts receivable to calculate the uncollectible accounts. By reclassification entries, I mean that if something does not belong in Accounts Receivable, then prepare a journal entry to reallocate it! Show all of your calculations. (10 marks)

2. Prepare the balance sheet presentation of ALL receivables as at December 31. (4