Problem P1-Balance Sheet Method

Use the following information and complete required items 1-3 The accounts receivable listing of FortHaw Inc. shows the following on December 31, 2020.

The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment

Name of customer Invoice date Amount

Cycles Inc. March 5, 2020 $950

First Corporation August 12, 2020 500

First Corporation December 10, 2020 550

Garron Inc. December 15, 2020 200

Heartwell Inc. August 15, 2020 480

Heartwell Inc. July 5, 2020 915

Leash Inc . May 5, 2020 575

Sign Corporation December 15, 2020 825

Spares Inc. November 18, 2020 325

Summer Corporation October 10, 2020 650

Required:

1. pre pare a aging of accounts receivable at December 31, 2020 2.Compute estimated loss based on the following:

Age (days) Estimated Loss Percentage

1-30 1%

31-60 2%

61-90 4%

91-120 10%

121-150 25%

Over 150 50%

3. Pepare journal entry to record the bad debt expense for the year.

Problem P2

Required:Calculate Accumulated Depreciation - Machine at December 31, 2020.Using Double Declining Balance

Data:

Cost of machine $800,000

Estimated useful life 10 years

Estimated salvage value $100,000

Double Declining 200%

Purchase Date January 1, 2019