A prepare the journal entry to record the write off b

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(a) Prepare the journal entry to record the write-off. (b) What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? BE9-5 Assume the same information as BE9-4. On March 4, 2011, Delong Co. receives pay- ment of $5,400 in full from Ristau Inc. Prepare the journal entries to record this transaction. BE9-6 Nieto Co. elects to use the percentage-of-sales basis in 2010 to record bad debts expense. It estimates that 2% of net credit sales will become uncollectible. Sales are $800,000 for 2010, sales returns and allowances are $45,000, and the allowance for doubtful accounts has a credit balance of $9,000. Prepare the adjusting entry to record bad debts expense in 2010. BE9-7 Linhart Co. uses the percentage-of-receivables basis to record bad debts expense. It estimates that 1% of accounts receivable will become uncollectible.Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500. (a) Prepare the adjusting journal entry to record bad debts expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine the amount to be reported for bad debts expense. BE9-8 Presented below are two independent transactions. (a) St. Pierre Restaurant accepted a Visa card in payment of a $150 lunch bill.The bank charges a 4% fee.What entry should St. Pierre make? (b) Jamar Company sold its accounts receivable of $60,000.What entry should Jamar make, given a service charge of 3% on the amount of receivables sold? BE9-9 Compute interest and find the maturity date for the following notes. Date of Note Principal Interest Rate (%) Terms (a) June 10 $80,000 6% 60 days (b) July 14 $50,000 7% 90 days (c) April 27 $12,000 8% 75 days BE9-10 Presented below are data on three promissory notes. Determine the missing amounts. Date of Maturity Annual Total Note Terms Date Principal Interest Rate Interest (a) April 1 60 days ? $600,000 9% ? (b) July 2 30 days ? 90,000 ? $600 (c) March 7 6 months ? 120,000 10% ? BE9-11 On January 10, 2010, Edmunds Co. sold merchandise on account to Jeff Gallup for $13,600, n/30. On February 9, Jeff Gallup gave Edmunds Co. a 10% promissory note in settle- ment of this account. Prepare the journal entry to record the sale and the settlement of the ac- count receivable. BE9-12 The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion.Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion at the end of the year. Compute 3M’s receivables turnover ratio. Compute 3M’s average collection period for accounts receivable in days. 422 Chapter 9 Accounting for Receivables Prepare entry for write-off; determine cash realizable value. (SO 3) Prepare entries for collection of bad debts write-off. (SO 3) Prepare entry using percentage- of-sales method. (SO 3) Prepare entry using percentage- of-receivables method.
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