Spring Designs & Decorators issued a 120-day, 4% note for $60,000, dated April 13 to Jaffe Furniture Company on account.

Required:

A. Determine the due date of the note.

B. Determine the maturity value of the note. Assume a 360-day year when calculating interest.

C. Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart Accounts for exact wording of account titles.

Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $6,800,000 and sales for the year total $81,500,000.

The allowance account before adjustment has a debit balance of $68,250. Bad debt expense is estimated at of 1% of sales.

The allowance account before adjustment has a debit balance of $68,250. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $575,000.

The allowance account before adjustment has a credit balance of $45,000. Bad debt expense is estimated at of 1% of sales.

The allowance account before adjustment has a credit balance of $45,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $450,000.

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. $