QUESTION 2 (20 MARKS) PART A [11 MARKS] The accounts of Merilin Company provided the following 2021 Information on December 31, 2021 (end of the annual period): Accounts receivable balance, January 1, 2021 $ 60,500 Allowance for doubtful accounts balance, January 1, 2021 2,500 Total sales revenue during 2021 (on credit ) 280.750 Uncollectible account to be written off during 2021 (former customer - Mrs. Alla) 3.270 Cash collected on accounts receivable during 2021 300,780 Required: 2. Give the entry to write-off customer Mrs. Alla's long-overdue account (1 mark) b. Give all entries related to accounts recevable and the allowance account for the cases shown below: Casei - uncollectible amount was based on 2% of credit sales (3 marks) Case II - uncollectible amount was based on 11% of the ending balance of the accounts receivable as of December 31, 2021 PARTB (9 MARKS) 7 mar ING Us PART B (9 MARKS) A company accepted a trade note from AB Enterprises, face value $3,000, 15 percent interest-bearing, dated August 18, maturing in 180 days Assume 360 days in a year Required: Sixty days prior to the maturity of the note, the company endorsed the note with recourse (discounted) to XY Finance Company at a 9 percent annual rate. Compute the following: (a) The company's proceeds from the note 5 Computations (b) The company's interest eamed (net of discount) Computations (c) Give the journal entry for the company to record the discounting transaction, assuming that the end of their fiscal year is June 30. The discounting is to be recorded as a sale. Assume interest revenue was not recorded before the discounting. For the toolbar SALTOFTO (CHOR ALTANEM BTS Paragraph Arial ! 1001 ili 111 A 2 I X a ENG SOPIM o QUESTION 2 (20 MARKS) PART A [11 MARKS] The accounts of Merilin Company provided the following 2021 Information on December 31, 2021 (end of the annual period): Accounts receivable balance, January 1, 2021 $ 60,500 Allowance for doubtful accounts balance, January 1, 2021 2,500 Total sales revenue during 2021 (on credit ) 280.750 Uncollectible account to be written off during 2021 (former customer - Mrs. Alla) 3.270 Cash collected on accounts receivable during 2021 300,780 Required: 2. Give the entry to write-off customer Mrs. Alla's long-overdue account (1 mark) b. Give all entries related to accounts recevable and the allowance account for the cases shown below: Casei - uncollectible amount was based on 2% of credit sales (3 marks) Case II - uncollectible amount was based on 11% of the ending balance of the accounts receivable as of December 31, 2021 PARTB (9 MARKS) 7 mar ING Us PART B (9 MARKS) A company accepted a trade note from AB Enterprises, face value $3,000, 15 percent interest-bearing, dated August 18, maturing in 180 days Assume 360 days in a year Required: Sixty days prior to the maturity of the note, the company endorsed the note with recourse (discounted) to XY Finance Company at a 9 percent annual rate. Compute the following: (a) The company's proceeds from the note 5 Computations (b) The company's interest eamed (net of discount) Computations (c) Give the journal entry for the company to record the discounting transaction, assuming that the end of their fiscal year is June 30. The discounting is to be recorded as a sale. Assume interest revenue was not recorded before the discounting. For the toolbar SALTOFTO (CHOR ALTANEM BTS Paragraph Arial ! 1001 ili 111 A 2 I X a ENG SOPIM o
