Technical Problem \#3 relates to chapter 6 - Cash and Receivables. It requires you to complete a problem relating to the accounting for accounts and notes receivable. The assignment is worth 15 points. - Problem - Accounts Receivable Perkins Co. makes most of its sales on a credit basis. Perkins uses the allowance method to account for credit losses. The company adjusts its accounts just once a year, at the December 31 year-end. At year-end 2022, the following balances are available from the company's unadjusted trial balance: In the process of adjusting its accounts at year-end 2022, Perkins estimated that 7.12% of its accounts receivable on that date would not be collected. During the 2023 fiscal year, Perkins experienced the following transactions related to its accounts receivable: In the process of adjusting its accounts at year-end 2023 , Perkins estimates that 8.79% of its accounts receivable will not be collected. Notes Receivable On December 31, 2023, Perkins received a 3-year, 3\%, \$81,265 promissory note as consideration in an inventory sale transaction on that date. The note requires the customer to pay interest annually on December 31 (2024 through 2026). The going market rate of interest for comparable notes on the issue date was 8%. On that same date (December 31, 2023), Perkins received a 1-year promissory note from another customer as consideration in an imventory sale transaction. The note is noninterestbearing, and it calls for the customer to pay the full face value of 557,905 on the December 31 , 2024 maturity date. The going market rate of interest for comparable notes on the issue date was 9% Applying GAAP, Perkins uses the effective-interest method to amortize premiums and discounts on all of its promissory notes. Receivables - Data Analvicics Below, vou are provided information on the receivables and related allowance for credit losses for three members of the S\&P 100. The information is provided for the years 2021, 2020 and 2019. All amounts are stated in millions of dollars. - Instructions - Using the information providearabve, address each of the following matters related to receivables: (a) Accounts receivable: Compute the cumulative Bad debt expense for 2019 to 2021 as a percertage of the cumulative Write-off for 2019 to 2021. Prepare a clustered column chart to show the percentage for each company. Which company appears to have forecast write-offs the most accurately over this three-year period? Explain in one sentence. Please observe the following checklist of instructions as vou complete this assignment: Prepare your solutions for parts (a), (b) and (c) using Excel. Show how you derived the amoumts you present that were not given in the problem. Roumd all dollar amounts you present in your joumal entries to the nearest dollar. Give careful attention to vour formatting of information. Formatting mcludes effective presentation of information, correct spelling and capitalization, and proper use of doliar signs, conmas, and undersconing. Refer to examples in the text for quidance. This assignment is an individual one. The paper you submit for grading should reflect your orin thoughts and insights. You are free, though, to discuss the assignment with your classmates. In this context, discuss means verbal communication only. Any capturing or shanng of information in any format (written, electronic, recorded, etc.) is a violation of the ASU Academic Integrity Code. Include the following identifying information in the upper left comer of the first sheet in your spreadsheet file: your 4-digt ID number (in place of your name), the course name and number (ACC 3100) and the starting time for your section (9:30am) the term (Spring 2023), and the Technical Problem \# (Technical Problem *3) I will ave the due date for this assigment xia Atrdeam and email In addition to the technical quality, make sure you give proper attention to the presentation of your work (see check box 44 above). I reserve the right to deduct points for work that is difficult to follow. Technical Problem \#3 relates to chapter 6 - Cash and Receivables. It requires you to complete a problem relating to the accounting for accounts and notes receivable. The assignment is worth 15 points. - Problem - Accounts Receivable Perkins Co. makes most of its sales on a credit basis. Perkins uses the allowance method to account for credit losses. The company adjusts its accounts just once a year, at the December 31 year-end. At year-end 2022, the following balances are available from the company's unadjusted trial balance: In the process of adjusting its accounts at year-end 2022, Perkins estimated that 7.12% of its accounts receivable on that date would not be collected. During the 2023 fiscal year, Perkins experienced the following transactions related to its accounts receivable: In the process of adjusting its accounts at year-end 2023 , Perkins estimates that 8.79% of its accounts receivable will not be collected. Notes Receivable On December 31, 2023, Perkins received a 3-year, 3\%, \$81,265 promissory note as consideration in an inventory sale transaction on that date. The note requires the customer to pay interest annually on December 31 (2024 through 2026). The going market rate of interest for comparable notes on the issue date was 8%. On that same date (December 31, 2023), Perkins received a 1-year promissory note from another customer as consideration in an imventory sale transaction. The note is noninterestbearing, and it calls for the customer to pay the full face value of 557,905 on the December 31 , 2024 maturity date. The going market rate of interest for comparable notes on the issue date was 9% Applying GAAP, Perkins uses the effective-interest method to amortize premiums and discounts on all of its promissory notes. Receivables - Data Analvicics Below, vou are provided information on the receivables and related allowance for credit losses for three members of the S\&P 100. The information is provided for the years 2021, 2020 and 2019. All amounts are stated in millions of dollars. - Instructions - Using the information providearabve, address each of the following matters related to receivables: (a) Accounts receivable: Compute the cumulative Bad debt expense for 2019 to 2021 as a percertage of the cumulative Write-off for 2019 to 2021. Prepare a clustered column chart to show the percentage for each company. Which company appears to have forecast write-offs the most accurately over this three-year period? Explain in one sentence. Please observe the following checklist of instructions as vou complete this assignment: Prepare your solutions for parts (a), (b) and (c) using Excel. Show how you derived the amoumts you present that were not given in the problem. Roumd all dollar amounts you present in your joumal entries to the nearest dollar. Give careful attention to vour formatting of information. Formatting mcludes effective presentation of information, correct spelling and capitalization, and proper use of doliar signs, conmas, and undersconing. Refer to examples in the text for quidance. This assignment is an individual one. The paper you submit for grading should reflect your orin thoughts and insights. You are free, though, to discuss the assignment with your classmates. In this context, discuss means verbal communication only. Any capturing or shanng of information in any format (written, electronic, recorded, etc.) is a violation of the ASU Academic Integrity Code. Include the following identifying information in the upper left comer of the first sheet in your spreadsheet file: your 4-digt ID number (in place of your name), the course name and number (ACC 3100) and the starting time for your section (9:30am) the term (Spring 2023), and the Technical Problem \# (Technical Problem *3) I will ave the due date for this assigment xia Atrdeam and email In addition to the technical quality, make sure you give proper attention to the presentation of your work (see check box 44 above). I reserve the right to deduct points for work that is difficult to follow