wouma Description Debit Credit Date Jan. 17 Sales Bad Debt Expense 9,800 9,800 17 Bad Debt Expense Accounts Receivable-Cy's Sports Corp. 9,800 9,800 21 Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. 10,700 2,200 12,900 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,000 500 3,500 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2,200 2,200 4 Cash Bad Debt Expense 2,200 2,200 13 Cash 5,540 Accounts Receivable-Barb's Best Gear 5,540 21,070 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable The Locker Room Accounts Receivable-C's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2,780 7,050 1,890 Recording Uncollectable Receivables Review the accounts receivable transactions shown in the general Journal on the Fan-Tastic Sports Gear Inc. panel. 1. How does the company appear to be handling uncollectible receivables? direct write-off method 2. You have made the following observations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear Inc. is handling uncollectible receivables appropriately, which of these observations are key factors in your decision? a. Most of the company's sales are on account. b. An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year, Collection agencies are routinely used d. Company sales last year were 53,000,000 and are expected to increase by $360,000 this vear. e. Bad debt is arising expense. The company sells primarily to smaller businesses, who are more likely to have cash flow problems. 3. After making the observations previously listed in (2), you have recommended that Fan-Tastic Sports Gear Inc. use the allowance method to record bad debe pense 2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary chan blank. Jan. 17 Cashx Jan. 21 Feb. 15 Mar. 4 Mar. 4 Mar. 13 Mar. 31 Print Item Jan. 21 Feb. 15 Mar. 4 Mar. 4 | 111 II II II II IIIII 1101 II II II II JIJINI Mar. 13 Mar 31 Note Receivable In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $195, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $5,070 in payment of this note receivable. Further investigation reveals that on November 19, 2017, this note receivable was received from Fast Feet Co. for $4,875. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note % Check My Work 3. Journalize the entry needed to record information about the note receivable from Fast Foot for the year 2017. Assume that the entry on November 19, 2017 is correct I an amount box does not require an entry, leave it blank Round all amounts to the nearest dollar. Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 2078. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Mar. 19 Rhe Che Work Final Questions Fan-Tastic Sports Gear Inc recorded $3,000,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 400 customer accounts, Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubthul accounts on December 317 Round all computations to the nearest dollars 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enter" if there is no change.) by $ 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $195, which would seem to indicate that Fast Feet paid too much Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $5,070 in payment of this note receivable. Further investigation reveals that on November 19, 2077, this note receivable was received from Fast Feet Co. for $4,875. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the Interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note: % Fox Check My Work 1. Use the equation for comoting interest on a note but solve for the term 2. Use the equation for computing interest on a note but solve for the interest rate 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 2017. Assume that the entry on November 19, 2017 is correct If an amount box does not require an entry leave it blank, Round all amounts to the nearest dollar Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Mar. 19 Check My Wor 4 Remember to consider that the note was issued and colected at matunty in offerent years Final Questions Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 400 customer accounts. Bad debt expense was $26,187. 1. Assume that Fantastic Sports Gear Inc used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expanse using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubfccounts on December 317 Round of computation to the nearest dollar 2. How much higher (lower would Pan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enterar ir there is no change) by 3. Using the allowance method, the hotel of the receivables would appear on which financial statement? wouma Description Debit Credit Date Jan. 17 Sales Bad Debt Expense 9,800 9,800 17 Bad Debt Expense Accounts Receivable-Cy's Sports Corp. 9,800 9,800 21 Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. 10,700 2,200 12,900 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,000 500 3,500 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2,200 2,200 4 Cash Bad Debt Expense 2,200 2,200 13 Cash 5,540 Accounts Receivable-Barb's Best Gear 5,540 21,070 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable The Locker Room Accounts Receivable-C's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2,780 7,050 1,890 Recording Uncollectable Receivables Review the accounts receivable transactions shown in the general Journal on the Fan-Tastic Sports Gear Inc. panel. 1. How does the company appear to be handling uncollectible receivables? direct write-off method 2. You have made the following observations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear Inc. is handling uncollectible receivables appropriately, which of these observations are key factors in your decision? a. Most of the company's sales are on account. b. An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year, Collection agencies are routinely used d. Company sales last year were 53,000,000 and are expected to increase by $360,000 this vear. e. Bad debt is arising expense. The company sells primarily to smaller businesses, who are more likely to have cash flow problems. 3. After making the observations previously listed in (2), you have recommended that Fan-Tastic Sports Gear Inc. use the allowance method to record bad debe pense 2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary chan blank. Jan. 17 Cashx Jan. 21 Feb. 15 Mar. 4 Mar. 4 Mar. 13 Mar. 31 Print Item Jan. 21 Feb. 15 Mar. 4 Mar. 4 | 111 II II II II IIIII 1101 II II II II JIJINI Mar. 13 Mar 31 Note Receivable In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $195, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $5,070 in payment of this note receivable. Further investigation reveals that on November 19, 2017, this note receivable was received from Fast Feet Co. for $4,875. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note % Check My Work 3. Journalize the entry needed to record information about the note receivable from Fast Foot for the year 2017. Assume that the entry on November 19, 2017 is correct I an amount box does not require an entry, leave it blank Round all amounts to the nearest dollar. Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 2078. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Mar. 19 Rhe Che Work Final Questions Fan-Tastic Sports Gear Inc recorded $3,000,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 400 customer accounts, Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubthul accounts on December 317 Round all computations to the nearest dollars 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enter" if there is no change.) by $ 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $195, which would seem to indicate that Fast Feet paid too much Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $5,070 in payment of this note receivable. Further investigation reveals that on November 19, 2077, this note receivable was received from Fast Feet Co. for $4,875. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the Interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note: % Fox Check My Work 1. Use the equation for comoting interest on a note but solve for the term 2. Use the equation for computing interest on a note but solve for the interest rate 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 2017. Assume that the entry on November 19, 2017 is correct If an amount box does not require an entry leave it blank, Round all amounts to the nearest dollar Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Mar. 19 Check My Wor 4 Remember to consider that the note was issued and colected at matunty in offerent years Final Questions Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 400 customer accounts. Bad debt expense was $26,187. 1. Assume that Fantastic Sports Gear Inc used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expanse using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubfccounts on December 317 Round of computation to the nearest dollar 2. How much higher (lower would Pan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enterar ir there is no change) by 3. Using the allowance method, the hotel of the receivables would appear on which financial statement