Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,120 from Matthew Chapman and wrote off the remainder owed of $2,670 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Matthew Chapman and received $2,670 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collection Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Age Interval Balance Accounts Percent Not past due $738,000 3/4% 1-30 days past due 81,200 4 31-60 days past due 36,900 7 61-90 days past due 26,600 14 91-180 days past due 19,200 40 Over 180 days past due 14,000 80 Total $915,900 Estimated Uncollectible Accounts Amount Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $31,315. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $5,635 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31 33 Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note a. January 10* b. March 19 C. June 5 d. September 8 e. November 20 Face Amount Interest Rate Term of Note $40,000 5% 90 days 18,000 8 180 days 90,000 36,000 27,000 134 7 30 days 90 days 60 days *Assume that February has 28 days. Assume 360-days in a year when computing the interest. Note Due Date Interest a. b. C. d. e. Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $955,000 and sales for the year total $10,820,000. a. The allowance account before adjustment has a credit balance of $12,900. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $12,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $41,300. c. The allowance account before adjustment has a debit balance of $6,800. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $6,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $56,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ b. $ c. $ d. $ Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $2,600 from Paula Spitler and wrote off the remainder owed of $3,300 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of Paula Spitler and received $3,300 cash in full payment. If an amount box does not require an entry, leave it blank. Reinstate Collection