EXAMPLE #4 Company uses allowance method for recording bad debt expense. Management uses an accounts receivable aging schedule for estimating bad debt expense The uncollectible rates are as follows: 5%, 45% and 90%

Prepare the journal entry to record the period-end adjustment for bad debt. aging current balance uncollectible rate Customer A 1-30days $45,000 5.00% Customer B 31-60 days $20,000 45.00% Customer C 61-90 days $24,000 90.00% total total $89,000

OTHER RECEIVABLES EXAMPLE #1 XYZ Company has decided to factor $250,000 of receivables to a finance company at a service charge of 3% of the amount of receivables sold. Prepare the journal entry to record the sale of the receivables to the finance company EXAMPLE #2 ABC Company wrote a $5,000, three-month, 10% promissory note dated January 1, to settle an open account with XZY Company. Prepare the journal entry to record receipt of the note Prepare the journal entry to record collection of note on maturity date (interest has not been accrued)