Question 2 The ledger of Flint ASA at the end of the current year shows Accounts Receivable 122,400, Sales Revenue 849,500, and Sales Returns and Allowances 32,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) If Flint uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Flint determines that T. Thum's 2,500 balance is uncollectible. If Allowance for Doubtful Accounts has a credit balance of 2,900 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 12% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of 290 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales and (2) 7% of accounts receivable. (c) Date Account Titles and Explanation Debit Credit (a) Dec. 31 (b) (1) Dec. 31 (2) Dec. 31 (c) (1) Dec. 31 (2) Dec. 31 Question 3 Presented below is an aging schedule for Carla AG. Customer Anders Blake Cyrs De Jong Others Number of Days Past Due Not Total 1-30 Yet Due 31-60 61-90 Over 90 $ 29,200 $13,100 $16,100 44,300 $ 44,300 62,600 18,500 6,500 $37,600 35,500 $35,500 137,200 96,500 17,000 16,000 7,700 $308,800 $159,300 $36,600 $32,100 $37,600 $43,200 2% 63% $ 46,457 $ 3,186 $ 1,464 $ 4,815 $ 9,776 $27,216 4% 15% 26% Estimated percentage uncollectible Total estimated bad debts At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,750. Journalize and post the adjusting entry for bad debts at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Bad Debt Expense Date Explanation Ref Debit Credit Balance Dec. 31 Adjusting Allowance for Doubtful Accounts Date Explanation Ref Dec. 31 Balance Debit Credit Balance Dec. 31 Adjusting Journalize and post to the allowance account the following events and transactions in the year 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) On March 31, a $1,210 customer balance originating in 2017 is judged uncollectible. (2) On May 31, a check for $1,210 is received from the customer whose account was written off as uncollectible on March 31. Debit Credit No. Date Account Titles and Explanation (1). Mar. 31 (2). May 31 (To record recovery of bad debts). May 31 Debit Credit Balance Allowance for Doubtful Accounts Date Explanation Ref 2017 Dec. 31 Balance Dec. 31 Adjusting 2018 10,750 46,457 35,707 Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $880 and the aging schedule indicates that total estimated bad debts will be $32,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Question 4 Compute interest and find the maturity date for the following notes. Date of Note June 10 Interest Principal Rate (%) 90,000 6% Terms Interest Maturity Date (a) 60 days (b) July 14 55,000 7% 90 days (c) April 27 32,400 4% 75 days ih Question 5 On January 1, 2017, Bramble SA had Accounts Receivable 103,860 and Allowance for Doubtful Accounts 9,500. Bramble prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold 10,200 of merchandise to Patrick Co., terms n/30. Feb. 2 Accepted an 10,200, 4-month, 5% promissory note from Patrick for the balance due. 12 Sold 13,200 of merchandise to Marguerite SA and accepted Marguerite's 13,200, 2-month, 7% note for the balance due. 26 Sold 7,200 of merchandise to Felton Co., terms n/10. Apr. 5 Accepted a 7,200, 3-month, 9% note from Felton Co. for the balance due. 12 Collected Marguerite note in full. June 2 Collected Patrick note in full. July 5 Felton Co. dishonors its note of April 5. It is expected that Felton will eventually pay the amount owed. 15 Sold 11,600 of merchandise to Planke Co. and accepted Planke's 11,600, 3-month, 9% note for the amount due. Oct. 15 Planke Co.'s note was dishonored. Planke Co. is bankrupt, and there is no hope of future settlement. Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Credit Question 2 The ledger of Flint ASA at the end of the current year shows Accounts Receivable 122,400, Sales Revenue 849,500, and Sales Returns and Allowances 32,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) If Flint uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Flint determines that T. Thum's 2,500 balance is uncollectible. If Allowance for Doubtful Accounts has a credit balance of 2,900 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 12% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of 290 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales and (2) 7% of accounts receivable. (c) Date Account Titles and Explanation Debit Credit (a) Dec. 31 (b) (1) Dec. 31 (2) Dec. 31 (c) (1) Dec. 31 (2) Dec. 31 Question 3 Presented below is an aging schedule for Carla AG. Customer Anders Blake Cyrs De Jong Others Number of Days Past Due Not Total 1-30 Yet Due 31-60 61-90 Over 90 $ 29,200 $13,100 $16,100 44,300 $ 44,300 62,600 18,500 6,500 $37,600 35,500 $35,500 137,200 96,500 17,000 16,000 7,700 $308,800 $159,300 $36,600 $32,100 $37,600 $43,200 2% 63% $ 46,457 $ 3,186 $ 1,464 $ 4,815 $ 9,776 $27,216 4% 15% 26% Estimated percentage uncollectible Total estimated bad debts At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,750. Journalize and post the adjusting entry for bad debts at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Bad Debt Expense Date Explanation Ref Debit Credit Balance Dec. 31 Adjusting Allowance for Doubtful Accounts Date Explanation Ref Dec. 31 Balance Debit Credit Balance Dec. 31 Adjusting Journalize and post to the allowance account the following events and transactions in the year 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) On March 31, a $1,210 customer balance originating in 2017 is judged uncollectible. (2) On May 31, a check for $1,210 is received from the customer whose account was written off as uncollectible on March 31. Debit Credit No. Date Account Titles and Explanation (1). Mar. 31 (2). May 31 (To record recovery of bad debts). May 31 Debit Credit Balance Allowance for Doubtful Accounts Date Explanation Ref 2017 Dec. 31 Balance Dec. 31 Adjusting 2018 10,750 46,457 35,707 Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $880 and the aging schedule indicates that total estimated bad debts will be $32,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Question 4 Compute interest and find the maturity date for the following notes. Date of Note June 10 Interest Principal Rate (%) 90,000 6% Terms Interest Maturity Date (a) 60 days (b) July 14 55,000 7% 90 days (c) April 27 32,400 4% 75 days ih Question 5 On January 1, 2017, Bramble SA had Accounts Receivable 103,860 and Allowance for Doubtful Accounts 9,500. Bramble prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold 10,200 of merchandise to Patrick Co., terms n/30. Feb. 2 Accepted an 10,200, 4-month, 5% promissory note from Patrick for the balance due. 12 Sold 13,200 of merchandise to Marguerite SA and accepted Marguerite's 13,200, 2-month, 7% note for the balance due. 26 Sold 7,200 of merchandise to Felton Co., terms n/10. Apr. 5 Accepted a 7,200, 3-month, 9% note from Felton Co. for the balance due. 12 Collected Marguerite note in full. June 2 Collected Patrick note in full. July 5 Felton Co. dishonors its note of April 5. It is expected that Felton will eventually pay the amount owed. 15 Sold 11,600 of merchandise to Planke Co. and accepted Planke's 11,600, 3-month, 9% note for the amount due. Oct. 15 Planke Co.'s note was dishonored. Planke Co. is bankrupt, and there is no hope of future settlement. Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Credit