Your Co. had sales of $30000, an ending A/R balance of $4500, and a dr. balance of $22.5 in the allowance account. Record the adjusting entry if 7% of A/R are uncollectible.
d) Your Co. had sales of $30000, an ending A/R balance of $4500, and a dr. balance of $22.5 in the allowance account. Record the adjusting entry if 7% of A/R are uncollectible. General Journal Date Account/Explanation PR Debit Credit Dec 31 (Accrue bad debts - 7% A/R) What entry is required if B Co. goes bankrupt next year owing Your Co. $67.5? General Journal Date Account/Explanation PR Debit Credit May 6 (Write off account) Your Co. had sales of $24000, an ending A/R balance of $4320. Record the year end adjusting entry if Your Co. uses the direct writeoff method and estimanes 1% of sales are uncollectible. General Journal Date Account/Explanation PR Debit Credit Dec 31 (Accrue bad debts - direct writeoff) What entry is required if E Co. goes bankrupt next year owing Your Co. $17.28? General Journal Date Account/Explanation PR Debit Credit July 24 (Write off account) f) Your Co. had sales of $26000, an ending A/R balance of $2600, and a cr. balance of 552 in the allowance account. Record the adjusting entry if 1.5% of sales are uncollectible. General Journal Date Account/Explanation PR Debit Credit Dec 31 (Accrue bad debts - 1% sales) What entry is required if I Co goes bankrupt next year owing Your Co. $78? General Journal Date Account/Explanation Debit Credit 22 (Write off account) PR Jan a) 3 - Your Co. uses different day-count conventions on each of its notes. On 10/22/21, Your Co. loaned X Co. $60000 on a 14.6% 120 day note. Record the journal entries at issuance, year end, and maturity. Assume interest is paid at maturity and the 365 day convention is used. General Journal Date Account/Explanation PR Debit Credit 10/22/21 (X Co. $60000 14.6% 120 day note) 12/31/21 (Accrue interest) (Maturity of note) b) On 9/1/20, Your Co. loaned Y Co. S42000 on a 6% 4 year note. Record the journal entries at issuance, year end, and when the annual interest payment is received. Assume the monthly convention is used. General Journal Date Account/Explanation PR Debit Credit 9/1/20 (Y Co. $42000 6% 4 day note) 12/31/20 (Accrue interest) 9/1/21 (Interest payment received) c) On 11/15/20, Your Co. loaned J Co. $48000 on a 5.4% 90 day note. Record the journal entries at issuance, year end, and maturity. Assume interest is paid at maturity and the 360 day convention is used. General Journal Date Account/Explanation PR Debit Credit 11/15/20 (1) Co. S48000 5.4% 90 day note) 12/31/20 (Accrue interest) (Maturity of note) d) On 3/1/20, Your Co. loaned Co. S 36000 on a 4% 6 year note. Record the journal entric d) e) (Maturity of note) On 3/1/20, Your Co. loaned L Co. S 36000 on a 4% 6 year note. Record the journal entries at issuance, year end, and when the annual interest payment is received. Assume the monthly convention is used. General Journal Date Account/Explanation PR Debit Credit 3/1/20 (L Co. $ 36000 4% 6 year note) 12/31/20 (Accrue interest) 3/1/21 (Interest payment received) On 12/23/20, Your Co. loaned K Co. $30000 on a 7.3% 30 day note. Record the journal entries at issuance, year end, and maturity. Assume interest is paid at maturity and the 365 day convention is used. General Journal Date Account/Explanation PR Debit Credit 12/23/20 (K Co. $30000 7.3% 30 day note) 12/31/20 (Accrue interest) (Maturity of note) f) On 4/5/20, Your Co. loaned Z Co. $30000 on a 3% 60 day note. Record the journal entries at issuance and maturity. Assume interest is paid at maturity, the 360 day convention is used, and no previous adjusting entries were made. General Journal Date Account/Explanation PR Debit Credit 4/5/20 (z Co. $30000 3% 60 day note) (Maturity of note)
