B Problem 21 At the completion of the current fiscal year ending December 31, the balance...

  

Transcribed Image Text:

B Problem 21 At the completion of the current fiscal year ending December 31, the balance of accounts receivable for Certa Pro Painters was $22,300. Credit sales for the year were $515,000. Required: Make the necessary adjusting entry in general journal form under each of the following assumptions. 1) Allowance for Bad Debts has a credit balance of $870. a. The percentage of sales method is used and bad debt expense is estimated to be 1.0% of credit sales. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,580 in uncollectible accounts. The percentage of sales method is used and bad debt expense is estimated to be 0.8% of credit sales. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,510 in uncollectible accounts. b. 2) Allowance for Bad Debts has a debit balance of $615. a. b. Problem 22 From the information given below, determine the due date for the following notes: Issue Note Date Term Due Date 1 January 1 30 days 2 January 15 30 days 3 March 20 60 days 4 March 20 3 months 5 June 18 90 days Compute the amount of accrued interest on the following notes Interest Accrued Principal Rate Time Interest 6 7,800 9.0% 75 days 7 3,600 12.5% 45 days 8 2,700 9.9% 90 days 9 4,300 6.2% 6 months 10 5,500 11.0% 120 days Compute the number of days from the issue date to the maturity date for the following notes: Issue Date Maturity Date Term of the Note 11 March 14, 2015 12 Sept. 27, 2015 13 Nov. 11, 2015 14 July 31, 2015 15 June 29, 2015 June 12, 2015 Dec. 11, 2015 March 14, 2016 Oct. 29, 2015 July 11, 2015 B Problem 21 At the completion of the current fiscal year ending December 31, the balance of accounts receivable for Certa Pro Painters was $22,300. Credit sales for the year were $515,000. Required: Make the necessary adjusting entry in general journal form under each of the following assumptions. 1) Allowance for Bad Debts has a credit balance of $870. a. The percentage of sales method is used and bad debt expense is estimated to be 1.0% of credit sales. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,580 in uncollectible accounts. The percentage of sales method is used and bad debt expense is estimated to be 0.8% of credit sales. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,510 in uncollectible accounts. b. 2) Allowance for Bad Debts has a debit balance of $615. a. b. Problem 22 From the information given below, determine the due date for the following notes: Issue Note Date Term Due Date 1 January 1 30 days 2 January 15 30 days 3 March 20 60 days 4 March 20 3 months 5 June 18 90 days Compute the amount of accrued interest on the following notes Interest Accrued Principal Rate Time Interest 6 7,800 9.0% 75 days 7 3,600 12.5% 45 days 8 2,700 9.9% 90 days 9 4,300 6.2% 6 months 10 5,500 11.0% 120 days Compute the number of days from the issue date to the maturity date for the following notes: Issue Date Maturity Date Term of the Note 11 March 14, 2015 12 Sept. 27, 2015 13 Nov. 11, 2015 14 July 31, 2015 15 June 29, 2015 June 12, 2015 Dec. 11, 2015 March 14, 2016 Oct. 29, 2015 July 11, 2015

Answer rating: 100% (QA)

Requirement 1 Determine the due date for the following notes Issue Date Note Term Due Date 1 January 1 30 days January 31 2 January 15 30 days Feburar... View the full answer