ACCT 1100 – Chapter 9 AssignmentComplete the aging schedule given below.  Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)AgeGroupB

ACCT 1100 – Chapter 9 AssignmentComplete the aging schedule given below.  Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)AgeGroupB.

ACCT 1100 – Chapter 9 – Assignment

 

 

  1. Complete the aging schedule given below.  Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)
Age

Group

Balance Percentage Estimated as Uncollectable Amount Estimated Uncollectable
Not yet due $66,000 2%  
31 – 60 days overdue   40,000 5%  
61 – 90 days overdue   24,000 8%  
91 – 120 days overdue   16,000 12%  
Over 120 days overdue     3,000 30%  
Total  

 

Allowance for Doubtful Accounts has a debit balance of $650 before adjustment.  What is the amount needed for the adjusting entry?  __________

 

  1. Calculate the interest on each of the following notes (20 points)
Face Value of Note Interest Rate Term of Note Interest
$10,000 12% 72 days  
$  6,500   8% 60 days  
$     900 11% 36 days  
$4,650   9% 80 days  

 

  1. Determine the due date of each of the following notes (20 points)
Date of Note Term of Note Due Date
October 30 30 days  
May 12 72 days  
November 27 36 days  
August 18 60 days  

 

 

 

 

  1. Pike Corporation uses the Aging of Receivables Method (balance sheet method) for recording estimated uncollectibles.  As of January 1, 20XX, Allowance for Doubtful Accounts had a credit balance of $2,000.  Record the following selected transaction in general journal form for 20XX  (20 points)

 

Feb. 12            Sold merchandise on account to Steven Baker, $2,150.

May 7              Wrote off a $475 balance owed by Donna Jacobs, who has declared bankruptcy.

Oct. 20            Received notice from an attorney that Steven Baker had declared bankruptcy.  Wrote off the entire balance owed by Baker.

Nov. 9             Sold merchandise on account $200.

Dec. 31            An aging schedule reveals an estimated $4,000 of uncollectibles.  Record the necessary adjusting entry.

GENERAL JOURNAL PAGE
Date Description Post
Ref.
Debit Credit
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

 

 

 

 

  1. Outdoors Unlimited accepts the Explorer credit card from its customers. Explorer charges a 3.5% service fee and pays Outdoors Unlimited the amount net of Explorer charges once a month. During February, Outdoors Unlimited sold $27,000 worth of merchandise to customers using the Explorer charge card. On February 28, Outdoor Unlimited sent the $27,000 worth of credit card receipts to Explorer. On March 4, Outdoors Unlimited received cash proceeds from Explorer for the February credit sales less the service charge. Prepare the journal entries to record February sales and the March 4 cash receipt.  (10 points)
GENERAL JOURNAL PAGE
Date Description Post
Ref.
Debit Credit
           
           
           
           
           
           

 

ACCT 1100 – Chapter 9 AssignmentComplete the aging schedule given below.  Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)AgeGroupB

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