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2 x fx 201: E-09 - INTEREST CALCULATIONS v. Calculate Interest on the following amounts ROUND TO NEAREST SET PRINCIPLE 45,000 RATE 12% TIME 90 days III 50,000 13% 4 months C. 55,000 14% 5 months 60,000 15% 180 days VI. BAD DEBTS Prepare the journal entries to reflect these transactions 25.000 9.000 A. We sold merchandise on account to a customer B. Customer pays on account: C. Customer refuses to pay, so write off amount owing. D. Customer agrees to make a payment on the note. 11.000 A A2 X fx 201 E-09: UNCOLLECTIBLES AWN Calculate & journalize the uncollectible amount: Prepare the journal entry using the income statement approach CREDIT SALES % UNCOLLECTIBLE 2,000,000 3.00% BU b. Using the balance sheet approach, prepare the journal entry if the allowance account has a debit balance of $2,000. TOTAL Current 600.000 1% 31 - 60 | 61 - 901 90-120 500.000 300.000 200.000 2% 3% 1 5 % 120+ 100.000 20% ALLOW FOR BD 2,000 MINNSINCININ c. Using the balance sheet approach, prepare the journal entry if the allowance account has a credit balance of $3,000. HALLOW FOR BD 3.000 08-BK STMT 08-BK REC 08-PETTY CASH 09 INTER 8 WRITE-OFF 09-BD