Use the following to answer questions 1-5 For the next few weeks the Ad Agency is offering a 12% trade discount when providing advertising services of $40,000 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 $20,000 ad campaign for Customer A-on account - pays within 10 days Designs a $40,000 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 $25,000 ad campaign for Customer D-received payment last month . . . . 3. $ 5. $ 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? Customer B pays within 10 days. how much will they pay? 4. $ _Determine the monthly Service revenue for the Agency _Determine the Agency's Net service revenue for the month Use the following to answer questions 6-7 The company reported the following amounts at the end of the year: Total sales $800,000 Accounts receivable Sales allowances 1,000 Allowance for Uncollectible accounts 2,000 10,000 12,000 50,000 Sales discounts Sales returns 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 the company for the month of November: Credit sales Accounts payable Accounts receivable Allowance for Uncollectible accounts Cash sales $825,000 25,000 45,000 200 credit 200,000 The company uses the percent of receivables method and estimates it will not collect 7% of accounts receivable. Use the following to answer questions 8-11 The following information pertains to the company for the month of November: Credit sales Accounts payable Accounts receivable Allowance for Uncollectible accounts Cash sales $825,000 25,000 45,000 200 credit 200,000 The company uses the percent of receivables method and estimates it will not collect 7% of accounts receivable. Chapter 5 Page 5-1 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