SPRING 2020 BUS2101 Chapter 7 Homework SHOW ALL WORK, colors optional QUESTION #1 Harris Supply Co. has the following transactions related to notes receivable during the last year: Jan 11 Sold goods to B. J. Good, receiving a $38,000, 2-year, 8.5% note. Feb. 5 Received a $12,800, 3-year, 5.45% note to settle an outstanding account receivable from M. Stu. May 21 Loaned $95,000 cash to B. Woods on a 1-year, 19.75% note. Aug. 16 Sold goods to R. P. Mayrl, Inc., receiving a $9,500, 180-day, 6.7% note. Nov. 25 Received a $18,000, 6-month, 12.11% note to settle an open account from M. Kline. Dec. 31 Accrued interest revenue on all notes receivable. Instructions Journalize the transactions above. Assume a 360-day year, 30 day months (as shown in lecture example). Round to 2 decimal places when needed. QUESTION #2 The following represents selected information taken from a company's aging schedule to estimate uncollectible accounts receivable at year-end: Number of Days Outstanding Accounts receivable % Uncollectible 0-30 $322,000 2.2% 31-60 $415,000 6.7% 61-90 588,000 8.5% 91 120 $57,000 17.3% Over 120 $25,000 38.1% Instructions (a) Prepare an aging schedule using the above information in good form as shown in lecture example. (b) Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aging schedule created in part (a). Assume the unadjusted balance in the Allowance for Doubtful Accounts account is a $9,876 debit. (c) of the above accounts. S1.516 is determined to be specifically uncollectible from T. Mills Prepare the journal entry to write of the uncollectible account. (d) What is the Net Realizable Value that would have been shown on the balance sheet before and after the write oft in part (c)? Show your calculations. (e) The company subsequently collects $1.288 on a specific account that had previously been determined to be uncollectible and written off. Prepare the necessary journal entry(ies) to record this event