Unformatted text preview: receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $410 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. 6. E9-12B Mike’s Stores had the following select transactions. Apr. 1, 2008 Accepted Otis Company’s 1-year, 12% note in settlement of a $30,000 account receivable. July 1, 2008 Loaned $50,000 cash to Dan Hampton on a 9-month, 10% note. Dec. 31, 2008 Accrued interest on all notes receivable. Apr. 1, 2009 Received principal plus interest on the Otis note. Apr. 1, 2009 Dan Hampton dishonored its note; Mike’s expects it will eventually collect. Prepare journal entries to record the transactions. Mike’s Stores prepares adjusting entries once a year on December 31....
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- Spring '11
- Generally Accepted Accounting Principles, Doubtful Accounts, adjusting entry, NVCC- Annandale Mitchell