Cornerstone Exercise 5-27 Aging Method On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,280,000 Allowance for Doubtful Accounts (a credit balance) 44,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of acce aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31, 2019. 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31, 2019. 3. Prepare the necessary adjusting entry for 2019. Record adjusting entry for bad debt expense estimate Cornerstone Exercise 5-30 Accounts Receivable Balance Beginning accounts receivable were $43,375. All sales were on account and totaled $187,600. Cash collected from customers totaled $182,450. Required: Calculate the ending accounts receivable balance. Cornerstone Exercise 5-33 Accounting for Credit Card Sales Frank's Tattoos and Body Piercing operates near campus. At the end of a recent day, Frank's cash register included credit card documents for the following sales amounts: MasterCard $756 Visa 486 The merchant's charges are 1.8% for MasterCard and 2.1% for Visa, Frank's also had cash sales of $375 and $800 of sales on credit to a local business. Required: Prepare a journal entry to record these sales. If an amount box does not require an entry, leave it blank, Round intermediate calculations and final answers to two decimal places, if required. Record sales Cornerstone Exercise 5-34 Notes Receivable Metzler Communications designs and programs a website for a local business. Metzler charges $46,000 for the project, and the local business signs an 8% note January 1, 2019 Required: 1. Prepare the journal entry to record the sale on January 1, 2019. Record sale 2. Determine how much interest Metzler will receive if the note is repaid on October 1, 2019. 3. Prepare Metzler's journal entry to record the cash received to pay off the note and interest on October 1, 2019. If an amount box does not require an entry, leave it blank. 9 Record collection of note receivable Cornerstone Exercise 5-36 Ratio Analysis The following information pertains to Cobb Corporation's financial results for the past year. Net sales $135,000 Cost of goods sold 48,000 Other expenses 37,000 50,000 Net income Required: 1. Calculate Cobb's gross profit margin ratio. Round your answer to the nearest whole percent. % 2. Calculate Cobb's net profit margin ratio. Round your answer to the nearest whole percent. % Brief Exercise 5-58 Sales Discounts (Appendix SA) Harry Gardner provides tax services for small businesses. This year's tax season has proved especially lucrative for Harry; he earned $45,000 for providing his services. Harry uses terms of 1/10, 1/30 in biling his customers Required: 1. Prepare the necessary journal entry to record the sale, assuming Harry does not expect is customers to pay within the discount period. Record sale 2. Prepare the necessary journal entry to record collection of the receivable assuming the customer pays within 10 days. If an amount box does not require an entry, leave it blank. Record sale within discount period 3. Prepare the necessary Journal entry to record collection of the receivable assuming the customer pays after 10 days. Record sale after discount period