1) A company has the following accounts receivable and estimates of uncollectible accounts:

1. Accounts not yet due = $60,000; estimated uncollectible = 3%.

2. Accounts 1-30 days past due = $20,000; estimated uncollectible = 20%.

3. Accounts more than 30 days past due = $10,000; estimated uncollectible = 50%.

Compute the total estimated uncollectible accounts.

Estimated uncollectible accounts:

2)

At the end of 2018, Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (credit) before any adjustment. The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method. Murray State's adjustment on December 31, 2018, to record its estimated uncollectible accounts included a:

Credit to Allowance for Uncollectible Accounts of $7,500.

Credit to Allowance for Uncollectible Accounts of $12,000.

Debit to Bad Debt Expense of $7,500; credit to Allowance for Uncollectible Accounts of $7,500.

Debit to Bad Debt Expense of $7,500.

3)

On February 1, 2018, Sanger Corp. lends cash and accepts a $5,500 note receivable that offers 18% interest and is due in six months. What would Sanger record on August 1, 2018, when the borrower pays Sanger the correct amount owed?

A)

Cash	5,995
Interest Revenue		495
Notes Receivable		5,500

B)

Cash	5,995
Notes Receivable		5,995

C)

Cash	5,995
Interest Revenue		330
Notes Receivable		5,665

D)

Cash	5,500
Notes Receivable		5,500

Answer rating: 100% (QA)

Solution 1 Total uncollectible amount 10800 60000 3 1800 20000 20 4000 100... View the full answer