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receivapies transactions (LU Y-I, LU 4-4, LU Y-O) Aardvark, Inc, begart 20X1 with the following receivables related account balances Accounts receivable Allowance for credit losses

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receivapies transactions (LU Y-I, LU 4-4, LU Y-O) Aardvark, Inc, begart 20X1 with the following receivables related account balances Accounts receivable Allowance for credit losses $575,000 43,25 Aardvark's transactions during 20X1 include the following a on April 1, 20X1, Aardvark accepted an 8% 12 month note from Smith Bros. In settlement of $17775 past due account b Aardvark finally ceased all efforts to collect 523 200 from various customers and wrote off their accounts Total sales for the year (80% on credit) were $1,765,000 Cosh receipts from customers as reported on Aardvark's cash flow statement were $1925.000 d. Sales for 20X1 as reported included $100,000 of merchandise that Jensen, Inc, ordered from Aardvark. Unfortunately, a shipping department error resulted in terme valued at $150,000 being shipped to Jensen, Because Jensen believed that it could eventually use the unordered items, I agreed to keep them in exchange for a 10% reduction in their price to cover storage costs. Neither the sales nor the receivable for the extra $50,000 of merchandise were recorded e On February 20X1. Aardvark borrowed $65,000 from Sun Bank and pledged receivables in that amount as collateral for the loan. Interest of 5% was deducted from the cash proceeds in June, Aardvark repaid the loan t Aardvark estimates uncollectible accounts using the sales revenue approach. In past years, the bad debt provision was estimated at 1% of gross sales revenue, but a weaker economy in 20Xlled management to increase the estimate to 15% of gross sales revenue 9. On July 1 201, Aardvark sold equipment to Zebra Company and received a $100,000 noninterest-bearing note receivable due in three years. The equipment normally sells for $79.383. Assume that the appropriate rate of interest for this transaction is 8% Required Required: 1. Prepare Journal entries for each of the preceding events. Also prepare any needed entries to accrue interest on the notes at December 31, 20X1 2 Show Aardvark's balance sheet presentation for accounts and notes receivable at December 31, 20X1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries for each of the preceding events. Also prepare any needed entries to accrue interest on the notes at December 31, 20xi. (Do not round intermediate calculations, Round your answers to the nearest whole dollar amount. If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction 1 General Journal Debit Notes receivable Accounts receivable Credit 2 Show Aardvark s balance sheet presentation for accounts and notes receivable at December 31, 20X1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show Aardvark's balance sheet presentation for accounts and notes receivable at December 31, 20x1. Amount Notes receivable Accounts receivable Allowance for credit losses

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