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Question

         

The accounts receivable listing of

FortHaw Inc. shows the following on December 31, 2018.

The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment

Name of customer

Invoice date

Amount

Cycles Inc.

March 5, 2018

$950

First Corporation

August 12, 2018

500

First Corporation

December 10, 2018

550

Garron Inc.

December 15, 2018

200

Heartwell Inc.

August 15, 2018

480

Heartwell Inc.

July 5, 2018

915

Leash Inc.

May 5, 2018

575

Sign Corporation

December 15, 2018

825

Spares Inc.

November 18, 2018

325

Summer Corporation

October 10, 2018

650

          

accounts receivable at December 31, 2018

2. estimated loss based:

Age (days)

Estimated Loss Percentage

1-30

1%

31-60

2%

61-90

4%

91-120

10%

121-150

25%

Over 150

50%

3. journal entry to record the bad debt expense for the year.   

Calculation of Uncollectible Amount

Decemer 31, 2018

Age (days)

Accounts Receivable

Estimated Loss Percentage

Uncollectible Amount

1-30

1%

31-60

2%

61-90

4%

91-20

10%

121-150

25%

Over 150

50%

Total

 

 

 

GENERAL JOURNAL

 

Date

Accounts

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

Problem P2

 Calculate Accumulated Depreciation - Machine at December 31, 2018. Using Double Declining Balance

Data:

Cost of machine

$750,000

Estimated useful life

10 Years

Estimated salvage value

$100,000

Double Declining

200%

Purchase Date

January 1, 2017

 

                  

Cost of machine

$750,000

Estimated useful life

10 Years

Estimated salvage value

$100,000

Double Declining

200%

Purchase Date

January 1, 2017

                          

Calculate Accumulated Depreciation - Machine at December 31, 2018. Using Double Declining Balance

Double Declining Balance

Year

Book Value of Asset 1st of Year

Rate on Declining Balance

Depreciation Expense

Balance Accumulated Depreciation

Book Value, End of Year

1

2

 

 

Problem P3

the price of a $500,000 bond issue under these two scenarios

Maturity

Interest Paid

Stated Rate

Market Rate

A

10 Years

Annually

10%

12%

B

10 Years

Semi-Annually

10%

12%

             

 

I have completed this work, but would like to compare my answers. The calculation of the last problem gave me issues.

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