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takehomequiztwofall2009 - Name Take Home Quiz Two Fall 2009...

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Name________________________ Take Home Quiz Two Fall 2009 PROBLEM 1 (1 point) The trial balance before adjustment of Feister Company reports the following balances: Dr. Cr. Accounts receivable $750,000 Allowance for doubtful accounts 10,500 Sales (all on credit) 775,000 Sales returns and allowances 55,000 Sales discounts 27,550 Part A (a) Assume that the allowance is to provide for doubtful accounts on the basis of 3.5% of gross accounts receivable. What is the journal entry for estimated bad debt? (b) Assume that the allowance is to provide for doubtful accounts on the basis of 5.5% of net sales. What is the journal entry for estimated bad debt? Part B (a) Giant received a 4-year, $250,000 4 percent interest-bearing note. The market rate of interest for a note of similar risk is 5 percent. How does Giant record the receipt of the note? (b) Prepare the amortization schedule using the effective interest method for the scheduled interest payments.
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PROBLEM 2 (2 points): The comparative balance sheets for Ishie Corporation show the following information.
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