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Recording Accounts Receivable (20 minutes) The October 1, 2019, records of Aloah Medical Care include the debit balance of Accounts Receivable, $255,000 and the credit

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Recording Accounts Receivable (20 minutes) The October 1, 2019, records of Aloah Medical Care include the debit balance of Accounts Receivable, $255,000 and the credit balance of Allowance for Doubtful Accounts, $3,400. The company's business year ends on Oct. 31, 2019. Instructions: The information above is relevant to question (a) and (b). The information provided in (a) is only relevant for (a) and not for (b), Blanks #1 - #4 relate to question (a). The information provided in (b) is only relevant for (b) and not for (a). Blanks #5 - #6 relate to question (b). (a) Prepare the journal entries for the following transactions: T1. On October 1, one of Aloah Medical Care's customer's, Fit4Life Ltd. agreed to sign a 60-day 5% note receivable to replace the $1,500 accounts receivable due on that day. T2. On October 31, the company decided to write off as uncollectible $1,400 account receivable from Rainbow Clinic Ltd. and $900 accounts receivable from Dena Med Inc. Blank #1: What account needs to be credited for transaction T1? Blank #2: What account needs to be debited for transaction T2? Blank #3: What is the balance on Aloah Medical Care's Accounts Receivable account on October 31, 2019 after accounting for transactions T1 and T2? Blank #4: What is the carrying amount of Aloah Medical Care's Accounts Receivable on October 31, 2019 after accounting for transactions T1 and T2? (b) Disregard the information in (a). Adjust the Allowance for Doubtful Accounts based on the aging of receivables method. The table below provides the relevant age of accounts per October 31. Days outstanding: Outstanding amounts: Estimated uncollectible: Age of Accounts 0-30 days $170,000 0.4% 31 -60 days 61-90 days $45,000 $22,000 Over 90 days $18,000 20% 1% 5% Blank #5: When recording the journal entry for this case, what amount has to be debited as Bad Debt Expense? Blank #6: What is the balance on Aloah Medical Care's Allowance For Doubtful Accounts account of October 31, after adjusting for the estimated uncollectible accounts? Note: Enter account names with their full names (do not abbreviate the account names); enter amounts as plain numbers (no $-sign, no commas, no spaces, etc.) Blank #1 Blank # 2 Blank #3 Blank #4 Blank # 5 Blank # 6

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