A bad debts expense 30610 c bad debts expense 29400

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(a) Bad debts expense $30,610 (c) Bad debts expense $29,400 Journalize transactions related to bad debts. (SO 2, 3) Worksheet.xls File Edit View Insert Format Tools Data Window Help A B C D E F G Total Number of Days Outstanding 0–30 31–60 91–120 Over 120 Accounts receivable % uncollectible Estimated bad debts 375,000 90,000 220,000 1 2 3 4 5 6 7 10,000 $15,000 10% 8% 61–90 40,000 5% 4% 1% (a) Tot. est. bad debts $11,510 Journalize entries to record transactions related to bad debts. (SO 3) (b) (2) $9,500 PDF Watermark Remover DEMO : Purchase from www.PDFWatermarkRemover.com to remove the watermark
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P9-6A Mendosa Company closes its books monthly. On September 30, selected ledger account balances are: Notes Receivable $33,000 Interest Receivable 170 Notes Receivable include the following. Date Maker Face Term Interest Aug. 16 Chang Inc. $ 8,000 60 days 8% Aug. 25 Hughey Co. 9,000 60 days 10% Sept. 30 Skinner Corp. 16,000 6 months 9% Interest is computed using a 360-day year. During October, the following transactions were completed. Oct. 7 Made sales of $6,900 on Mendosa credit cards. 12 Made sales of $900 on MasterCard credit cards.The credit card service charge is 3%. 15 Added $460 to Mendosa customer balance for finance charges on unpaid balances. 15 Received payment in full from Chang Inc. on the amount due. 24 Received notice that the Hughey note has been dishonored. (Assume that Hughey is expected to pay in the future.) Instructions (a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable. (b) Enter the balances at October 1 in the receivable accounts. Post the entries to all of the re- ceivable accounts. (c) Show the balance sheet presentation of the receivable accounts at October 31. P9-7A On January 1, 2010, Kloppenberg Company had Accounts Receivable $139,000, Notes Receivable $25,000,and Allowance for Doubtful Accounts $13,200.The note receivable is from Sara Rogers Company. It is a 4-month, 12% note dated December 31, 2009. Kloppenberg Company pre- pares financial statements annually. During the year the following selected transactions occurred. Jan. 5 Sold $20,000 of merchandise to Dedonder Company, terms n/15. 20 Accepted Dedonder Company’s $20,000, 3-month, 9% note for balance due. Feb. 18 Sold $8,000 of merchandise to Ludwig Company and accepted Ludwig’s $8,000, 6-month, 9% note for the amount due. Apr. 20 Collected Dedonder Company note in full. 30 Received payment in full from Sara Rogers Company on the amount due. May 25 Accepted Jenks Inc.’s $4,000, 3-month, 7% note in settlement of a past-due balance on account. Aug. 18 Received payment in full from Ludwig Company on note due. 25 The Jenks Inc. note was dishonored. Jenks Inc. is not bankrupt; future payment is anticipated. Sept. 1 Sold $12,000 of merchandise to Lena Torme Company and accepted a $12,000, 6-month, 10% note for the amount due. Instructions Journalize the transactions. 428 Chapter 9 Accounting for Receivables Prepare entries for various notes receivable transactions. (SO 2, 4, 5, 8, 9) (b) Accounts receivable $16,510 (c) Total receivables $32,630 Prepare entries for various receivable transactions.
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