Question

200. due s with an interests of 10.000.07.20= 116.67 5. Prepare the journal entry for the payment of principal and interest in question 14 A Debit Cach 10.116.00 Credit Note Recevable 10.000.00 and Credit interest Revenue 116.00 B Debit Note Receivable 10.000.00, Credit interest Ravenue 700,00 and Credit Cash 10, 10000 C Debit Cash 10, 115.06. Credit Not Receivable 10,000.00 and Credit interest Revem 115.06 0. Debit Cash 10.116.62; Credit Notes Receivable 10,000 and Credit interessRevenue 116.67 6. John Marsh dishonored a note for $500 and the account needs to be written off. Write the journal entry A Debit Accounts Receivables 500 Credit Allowance for Doubtful Accounts 500 B. Debit Accounts Receivable 500, Credit Cash 500 C. Debit Bad Debt Expense 500: Credit Allowance for Doubtful Accounts 500 D. Debit Allowance for Doubtful Accounts 500: Credit Accounts Receivable 500

This is from Chapter 8 from Accounting 2301. I need the equations to understand.

Credit sales for the year were $40,000. Ending accounts receivable is $3,000. The Allowance for Doubtful Accounts has a credit balance of $300. The accountant aged the accounts receivable and determined that $620 would be uncollectible.

1. Determine the uncollectible accounts expense and prepare the adjusting entry to record this expense.

A. Debit Bad Debt Expense 500; Credit Allowance for Doubtful Accounts 500.

B. Debit Bad Debt Expense 320; Credit Allowance for Doubtful Accounts 320.

C. Debit Bad Debt Expense 700; Credit Allowance for Doubtful Accounts 700.

D. Debit Allowance for Doubtful Accounts 320; Credit Bad Debt Expense 320.

2. What is the net realizable value after the adjusting entry is made?

A. $3,300

B. $3,480

C. $3,680

D. $2,380

3. If beginning accounts receivable is $6,000, how much cash has been collected from the customers this past year?

A. $49,000

B. $43,000

C. $3,000

D. $2,000

4. A customer signs a note receivable for $100,000, due in 60 days with an interest rate of 7%. Calculate the amount of interest due in 60 days.

A. $116.67

B. $115.06

C. $700.00

D. $116.00

5. Prepare the journal entry for the payment of principal and interest in question #4.

A. Debit Cash $10,116.00; Credit Note Receivable $10,000.00 and Credit Interest Revenue $116.00

B. Debit Note Receivable $10,000.00; Credit Interest Revenue $700.00 and Credit Cash $10,700.00

C. Debit Cash $10,115.06; Credit Note Receivable $10,000.00 and Credit Interest Revenue $115.06

D. Debit Cash $10,116.67; Credit Notes Receivable $10,000 and Credit Interest Revenue $116.67

6. John Marsh dishonored a note for $500 and the account needs to be written off. Write the journal entry.

A. Debit Accounts Receivable 500; Credit Allowance for Doubtful Accounts 500.

B. Debit Accounts Receivable 500; Credit Cash 500.

C. Debit Bad Debt Expense 500; Credit Allowance for Doubtful Accounts 500.

D. Debit Allowance for Doubtful Accounts 500; Credit Accounts Receivable 500.

Answer 1

Ans1 Desired ending balance in Allowance for Doubtful accounts Less: Credit balance before adjusting entry Bad Debt entry to be passed $620 ($300) $320 Debit Credit Account title Bad Debt Expense Allowance for Doubtful Account $320 $320 Corrrect answer is option (B) i.e. Debit Bad Debt Expense 320; Credit Allowance for Doubtful Accounts 320 Ans 2 Accounts Receivable Less: Net Realizable value $3,000 ($620) $2,380 Corrrect answer is option (D) i.e. $2380 Ans 3 Beginning A/R + Sales - Collection = Ending A/R Beginning A/R + Sales - Ending A/R = Collection Collection = $6000+$40000-$3000 Collection = $43000 Corrrect answer is option (B) i.e. $43000

Ans 4 $10,000 7% Note Receivable rate days Interest ($10000 x 7%)/360 x 60] $116.67 Corrrect answer is option (A) i.e. $116.67 Ans 5 Credit Debit $10,116.67 Account title Cash Notes Receivable Interest Revenue $10,000 $116.67 Corrrect answer is option (D) i.e. "$116.67 Debit Cash $10,116.67; Credit Notes Receivable $10,000 and Credit Interest Revenue $116.67" Ans 6 Debit Credit Account title Allowance for Doubtful Accounts Accounts Receivable $500 $500 Corrrect answer is option (D) i.e. "Debit Allowance for Doubtful Accounts 500; Credit Accounts Receivable 500"