1. The Noran Company estimates that 2% of its total credit sales will prove to be uncollectible. The existing balance in allowance for doubtful accounts account is $4,000. If the credit sales for the year 2018 are $50,000, the adjusting entry on December 31, 2018 would be made for the amount of ?
2. Lie Dharma Corp. sells on terms of net/60. Its accounts are on the average 30 days past due. Annual credit sales are $500,000. The investment in accounts receivable is:
3. Best Company store receive 60 days, 9 % note for $5000 dated April 15^th 2015 as a settlement for a debt. You are required to : a. Calculate the amount of interest to be paid. b.Journalize the transaction.