In class Problems Chapter 5 Professor Schulman Problem 1 On April 25, Lobo Electric installs wiring in a new home for $3,000 on account. However, on April 27, Lobo's electrical work does not pass inspection, and Lobo grants the customer an allowance of $500 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. Record the credit sale on April 25 2. Record the sales allowance on April 27. 3. Record the cash collection on April 30. 4. Calculate net sales associated with these transactions. Problem 2 Northwest Pediatrics has the following balances on December 31 before any adjustment: Accounts Receivable $150,000; Allowance for Uncollectible Accounts $3,000 (debit). On December 31, Northwest estimates uncollectible accounts to be 20% of accounts receivable. Required: 1. Record the adjustment for uncollectible accounts on December 31 Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet 2. 3. Calculate the net realizable value of accounts receivable. In class Problems Chapter 5 Professor Schulman Problem 3 Accounts Receivable $70,000; Allowance for Uncollectible Accounts $2,000 (credit), Blue estimates uncollectible accounts based on an aging of accounts receivable as shown below. Blue Corporation has the following balances on December 31, before any adjustment: RecelvableUncollectible 11,000 6,000 3.000 10% 20 50% 90% 31-90days past due More than 90 days past due Iotal 70,000 Required: 1. Estimate the amount of uncollectible receivables 2. Record the adjustment for uncollectible accounts on December 31 3. Calculate the net realizable value of accounts receivable. Problem 4 On March 1, Jakes & Associates provides legal services to Whole Wheat Bakery regarding some recent food poisoning complaints. Legal services total $20,000. In payment for the services, Whole wheat Bakery signs a 10% note requiring the payment of the face amount and interest to lakes & Associates on September 1. Required For Jakes & Associates, record the acceptance of the note receivable on March 1 and the cash collection on September 1