2. Please list the three steps right next to the respective journal entries that are involved in an imprest petty cash system. Use dollar amounts in your journal entries to correctly explain you understand this system.

3. Please contrast between the direct write-off method and the allowance method, using adjusting journal entries. The allowance method has two journal entries. No values are needed, just the account names that are debited and credited.

4. Please demonstrate the two journal entries, for the allowance method, when a buyer has a change of heart and decides to pay you. Assume you have written off or given up on this client as an A/R for your net asset.

5. Please compute the interest amount due to your company from the $51,000, 3 month, 7% note that you bought from another company. Show the journal entry for the receipt of the note and the journal entry when you collect on the note.

6. Please make the journal entry, no values needed, for a note that has been dishonored as discussed in the text and lecture. Hint: Three different accounts are required, over two journal entries.

7. Suppose your company has general ledger balances for the following accounts:

A/R = $249,000; Sales = $991,000; Sales Returns & Allowances = $50,000; and Allowance for Doubtful Accounts = $3,100.

Please provide the adjusting journal entry, using the Percent of Net Sales method, assuming that bad debts are expected to be 1% of net sales. Then provide the journal entry, using the Percent of Receivables method, assuming that bad debts are expected to be 5% of accounts receivables. Note that you use gross receivables for this percentage calculation, then you address the Allowance balance.

8. Suppose your company has accounts receivable of $241,000 as of March 31^st. An analysis of the accounts shows the following:

Balance as of Estimated

Month of Sale March 31^st Uncollectible %

March $140,000 4%

February $37,000 7%

January $38,000 22%

Prior to January $26,000 45%

Totals 241,000

Credit terms are 2/10, n/30. At March 31^st, Allowance for Doubtful Accounts has a credit balance of $4,300 prior to adjustment. Prepare the adjusting entry at March 31^st to record bad debts expense, and the allowance for doubtful accounts contra asset, using the aging, percentage of receivables method.

10. Please state the three primary components of Internal Control (I/C) procedures, as done in the text and lecture.

12. Please calculate Gross Margin and Acid (Quick) ratios, based on the following facts: Ending Current Liabilities = $700,000; Cost of Goods Sold = $395,000; Ending Cash = $100,000; Ending Cash Equivalents + S.T. Investments = $160,000; Ending Net Current Accounts Receivable = $250,000; and Net Sales = $980,000.

13. Please calculate Cash Ratio, based on the following facts: Ending Current Liabilities = $751,000; Ending Cash = $100,000; and Ending Cash Equivalents = $85,000. In addition, please define accounting information systems, as done in the text and lecture.

14. Please calculate Accounts Receivable Turnover Ratio (ARTO), and Days Sales in Receivables Ratio based on the following facts: Gross Sales = $980,000; Beginning Accounts Receivables = $275,000; Total Cash Sales = $40,000; Ending Accounts Receivables = $475,000; Sales Returns and Allowances & Sales Discounts = $81,000.