Reference no: EM132899365

Question -

1) The Allowance for Doubtful Account has a $6,800 debit balance prior to adjustment. Net credit sales during the year are $6,000,000 and ½ of ¾% of credit sales are estimated to be uncollectible. Accounts Receivable has a balance of $375,000 at the ending of the year. Determine the net realizable value of the receivables at year end. Show the allowance account and show your calculations.

Q2) The Allowance for Doubtful Accounts has a $8,900 debit balance prior to adjustment. Based on an aging schedule of accounts receivable schedule prepared at December 31, 2015, the end of the year, the estimated uncollectibles is $64,350. Accounts Receivable has a balance of $504,000 at the end of the year. Journalize the adjusting entry needed to record bad debts at December 31, 2015.

Journalize the following transactions of Image Solutions. Round all decimals to the nearest dollar.

Sept 16, 2016 Issued a loan to D. Garcia and received a $21,000, 60-days, 14% note. Journalize the receipt of the note.

Nov 15, 2016 D Garcia dishonored his note.

Dec 15, 2016 Received payment on D. Garcia's dishonored note, charging 30 days' additional interest at the rate of 2%.