Requirement 1. Journalize the following transactions of

Fast DeliveryFast Delivery for the year ended December 31, 2019

(explanations are not required). (Record debits first, then credits. Exclude explanations from any journal entries. Enter amounts in millions as provided to you in the problem statement.)

a. Service revenue was $34,000 million, of which 10% is cash and the remainder is on the account.

b. Collections from customers on account were $29,300 million.

c. Uncollectible-account expense was 22% of service revenue on account. (Round your answer to the nearest million.)

d. Write-offs of uncollectible accounts receivable were $702 million.

e. On December 1, Fast Delivery received a 2-month, 10%, $240 million note receivable from a large corporate customer in exchange for the customer's past due account; Fast Delivery made the proper year-end adjusting entry for the interest on this note. First record the note in exchange for the past due account.

e part 2. year-end adjusting entry for the interest on the note

f. Fast Delivery December 31,2019, year-end bank statement reported $42 million of non-sufficient (NSF) checks from customers.

Requirements 2 and 3. T-accounts for Accounts Receivable and Allowance for Uncollectible Accounts have been opened. Insert the December 31, 2018, balances as given. Post your entries to the Accounts Receivable and Allowance for Uncollectible Accounts T-accounts. Compute the ending balances for Accounts Receivable and the Allowance for Uncollectible Accounts and compare your balances to the actual December 31, 2019, amounts. They should be the same. How much does Fast Delivery expect to collect from its customers after December 31, 2019?

Fast Delivery expects to collect $

____

million from its credit customers after December 31, 2019.

Requirement 4. Show the net effect of these transactions on Fast Delivery net income for the year ended December 31, 2019

Net effect on net income

1. Journalize the following transactions of Fast Delivery for the year ended December 31, 2019 (explanations are not required): a. Service revenue was $34,000 million, of which 10% is cash and the remainder is on account. b. Collections from customers on account were $29,300 million. C. Uncollectible-account expense was 2% of service revenue on account. d. Write-offs of uncollectible accounts receivable were $702 million. e. On December 1, Fast Delivery received a 2-month, 10%, $240 million note receivable from a large corporate customer in exchange for the customer's past due account; Fast Delivery made the proper year-end adjusting entry for the interest on this note. f. Fast Delivery's December 31, 2019, year-end bank statement reported $42 million of non-sufficient (NSF) checks from customers. T-accounts for Accounts Receivable and Allowance for Uncollectible Accounts have been opened. Insert the December 31, 2018, balances as given. Post your entries to the Accounts Receivable and Allowance for Uncollectible Accounts T-accounts. Compute the ending balances for Accounts Receivable and the Allowance for Uncollectible Accounts and compare your balances to the actual December 31, 2019, amounts. They should be the same. How much does Fast Delivery expect to collect from its customers after December 31, 2019? Show the net effect of these transactions on Fast Delivery's net income for the year ended December 31, 2019. 2. 3. 4. Since it sells on credit, the company cannot expect to collect 100% of its accounts receivable. At December 31, 2018, and 2019, respectively, Fast Delivery reported the following on its balance sheet (in millions of dollars): December 31, 2019 2018 Accounts receivable $ 3,600 (130) 3,200 (220) Less: Allowance for uncollectible accounts ....- Accounts receivable, net.... 3.470 $ 2,980 UUUULIL CUOIVODIO TIL . . . . . . . . . . . . . . . . During the year ended December 31, 2019, Fast Delivery earned service revenue and collected cash from customers. Assume uncollectible-account expense for the year was 2% of service revenue on account and that Fast Delivery wrote off uncollectible receivables and made other adjustments as necessary