QUESTION 2 $ 175 Account Receivable Problems Section 1 On December 31,2020, Company Dragon Fly has the following information as presented below Account A/C Receivable at the beginning of the year 8,720 ADA [debit balance in the beginning) Sales 25.460 Sales Return 1600 Sales Discount 5% of sales 15% of the sales are cash The company has decided to estimate bad debt for the year based on 5% sales. The writing off of the debt occurs before the estimation of Allowance for Doubtful debt (ADA) Required Part 1 ( sales Approach A. Calculate bad debt B. Journalize the bad debt and the Allowance for doubtful debt C. Post them on T-account D. Show the balance extract for the account receivable Part 2 [ Account Receivable method ] If the company decides to use the account receivable method (Use 9% A/C receivable] A. Calculate the desired balance of ADA B. Calculate the bad debt and show them on T - Account C. Journalize bad debt and the ADA D. Show the balance sheet extract for the Net Realizable Value Section 2 AGING METHOD The following information is available regarding the outstanding accounts receivable of company XYZ at May 31, 2020 S880 May 1300 0 1500 June 0 1500 2000 Customers March April $940 1520 Y 0 Z S 1230 900 Assume n/30 credit term Estimates of bad debt using the following Not Due 1-29 after due 30-59 after due 5% 12% 21% 60-89 after due 30% -90 days after due 50% The company had a debit balance of ADA of S1100 REQUIRED A. Calculate the desired balance B. Use T - A/C to find the bad debts C. Journalize D. Give the balance sheet extract of Net Realizable Value Payroll Question 3 The payroll department is asked to make a payroll summary of the workers employed by A-Z Company. The two workers, Jane and Max work for the selling department and the rest for admin department. Jane also contributes S45 to Canada Bond Saving and has instructed the employer to deduct from her pay. Each worker contributes $25 for Union Dues and $55 for hospital insurance. Further information is given to the accountant. Weekly Pay Employees Hours worked Hourly rates 52 28 Jane 43 35 Max 47 42 John REQUIRED 1. Calculate the following a. Gross salary of each worker b. Tax to be deducted if the rate is 18% c. Employment insurance for both employee and employer (1.87%) d. Canada pension for both employee and employer [4.95%) 2. Make a schedule for the employees using the format. 3. Journalize the payroll information of employees only. 4. Calculate the total contributions that the employer has to make on his employees in terms of CPP and El