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The December 31, 2020 statement of financial position of Ocean Breezes Limited reported Accounts Receivable of $450,000 and the Allowance for Doubtful Accounts of $45,000.

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The December 31, 2020 statement of financial position of Ocean Breezes Limited reported Accounts Receivable of $450,000 and the Allowance for Doubtful Accounts of $45,000. During 2018, the following transactions occurred: 1. service revenue billed on account, $1,500,000; 2. collections from customers, $1,300,000; 3. accounts written off $37,000; 4. If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 5% of accounts receivable. Accounts Receivable equals $613,000 prepare the adjusting entry for bad debts expense at December 31, 2021. 682 Copeland Industries has the following transactions related to notes receivable during the last month of the year: Dec 1 Lent $75,000 cash to P. Arthur on a 1-year, 6% note. Interest is due the first of each month, commencing January 1. 15 Sold goods to F. Murdoch, receiving a $12,000, 4-month, 4% note. Interest is due the 15 of each month, commencing January 15. Copeland uses the periodic inventory method. Accrued interest revenue on notes receivable. Dec 1 Dec 15 Dec 31 682

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