Use the following to answer questions 1 5

For the next few weeks CJM Ad Agency is offering a 20% trade discount when providing advertising services of $50,000 or more to its customers to encourage customers to buy more advertising. The Agency also offers 2/10, n30 on all credit sales. All credit sales are invoiced at the end of the month. The Agency provided the following services this month; amounts are shown before trade discounts have been deducted:

Designs a $30,000 ad campaign for Customer A on account pays within 10 days

Designs a $50,000 ad campaign for Customer B on account pays within 10 days

Designs a $50,000 ad campaign for Customer C on account pays within 30 days

Designs a $20,000 ad campaign for Customer Dreceived payment last month

1. $___________What amount of Service revenue should the Agency record for Customer A?

2. $___________What amount of Service revenue should the Agency record for Customer B?

3. $___________Customer B pays within 10 days; how much will they pay?

4. $___________Determine the monthly Service revenue for the Agency

5. $___________Determine the Agencys Net service revenue for the month

Use the following to answer questions 6 7

MBC, Inc., reported the following amounts at the end of the year:

Total sales	$890,000
Accounts receivable	80,000
Sales allowances	500
Allowance for Uncollectible accounts	4,200
Sales discounts	10,000
Sales returns	1,000

6. $___________Determine total contra revenues for the company

7. $___________Determine net sales for the company

Use the following to answer questions 8 11

The following information pertains to JR, Inc. for the month of November:

Credit sales	$880,000
Accounts payable	35,000
Accounts receivable	81,000
Allowance for Uncollectible accounts	500	credit
Cash sales	200,000

JR uses the percent of receivables method and estimates it will not collect 5% of accounts receivable.

8. $___________Determine the ending balance for the Allowance for Uncollectible Accounts

9. $___________Determine the appropriate amount to record for Bad Debt expense

10. $___________Assuming the Allowance for Uncollectible accounts had a $100 debit balance instead, determine the amount to record for Bad Debt expense

11. $___________After recording bad debt expense the Net Accounts Receivable is:

Use the following to answer questions 12 15

At December 31, KC Co reported accounts receivable of $50,000 and an allowance for uncollectible accounts of $300 (credit). An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 7% of accounts receivable.

12. $___________Estimate the amount of uncollectible receivables:

13. $___________When recording the adjusting entry for bad debt expense how much should Allowance for Uncollectible accounts be credited?

14. On January 10, a customers account balance of $100 is written off as uncollectible. Record the write-off.

15. $___________If Net Accounts receivable were $45,000 before the write-off, how much are Net Accounts receivable AFTER the write-off?