Hello, I need help answering these 6 questions. Thank you kindly for your time a

Question

Hello, I need help answering these 6 questions. Thank you kindly for your time and your generous help.

1)
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $124,500, allowance for doubtful accounts of $865 (credit) and sales of $1,025,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

$5,845

$4,980

$4,115

$4,300

$4,450

2)
A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

$4,600

$5,400

$6,200

$800

None of these

3)
A company factored $46,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a:

Debit to Cash of $46,000 and a credit to Accounts Receivable of $46,000.

Debit to Cash of $46,000 and a credit to Notes Payable of $46,000.

Debit to Cash of $45,080, a debit to Factoring Fee Expense of $920, and a credit to Accounts Receivable of $46,000.

Debit to Cash of $46,000, a credit to Factoring Fee Expense of $920, and a credit to Accounts Receivable of $45,080.

Debit to Cash of $46,920 and a credit to Accounts Receivable of $46,920.

4)
Valley Spa purchased $10,500 in plumbing components from Tubman Co. Valley Spa Studios signed a 60-day, 12% promissory note for $10,500. If the note is dishonored, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Debit Accounts Receivable $10,500; debit Bad Debt Expense $210; credit Notes Receivable $10,710.

Debit Bad Debt Expense $10,710; credit Accounts Receivable $10,710.

Debit Bad Debt Expense $10,500; credit Notes Receivable $10,500.

Debit Accounts Receivable—Valley Spa $10,500; credit Notes Receivable $10,500.

Debit Accounts Receivable—Valley Spa $10,710, credit Interest Revenue $210; credit Notes Receivable $10,500.

5)
The following information is available for Birch Company at December 31:

  Money market fund balance

$   2,920

  Certificate of deposit maturing June 30 of next year

$ 16,300

  Postdated checks from customers

$   1,800

  Cash in bank account

$ 23,731

  NSF checks from customers returned by bank

$      780

  Cash in petty cash fund

$     330

  Inventory of postage stamps

$        31  

  U.S. Treasury bill purchased on December 15 and maturing
     on February 28 of following year

$ 11,300

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

$40,861

$54,581

$39,301

$43,312

$38,281

6)
A company had $49 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:

Debit Cash Over and Short for $49.

Credit Cash Over and Short for $49.

Debit Petty Cash for $49.

Credit Petty Cash for $49.

Debit Cash for $49.

1)
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $124,500, allowance for doubtful accounts of $865 (credit) and sales of $1,025,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

Explanation / Answer

1)correct option is "C" -4115

[Allownace required = 124500*.04= 4980

less:Already balance standing         (865)

Amount to be created   = 4115

2)correct option is "C"

[Allownace required = 90000*.06 =5400

less:Already balance standing        -(- 865)

Amount to be created   = 6200                        [5400Credit + 865 debit]

3)correct option is "C"

Debit to Cash of $45,080 (46000*.98), a debit to Factoring Fee Expense of $920 (46000*.02), and a credit to Accounts Receivable of $46,000.

4)correct option is "E"

Debit Accounts Receivable—Valley Spa $10,710, credit Interest Revenue $210; credit Notes Receivable $10,500.

[Interest accrued = 10500*.12*60*360]=210

5)correct option is "E"

Add:   money market fund 2920

              cash in bank          23731

      petty cash fund      330

U.S. Treasury bill with maturity of less than three months on date of purchase 11300

           Total cash equivalent   38281

6)correct option is "A" - Debit Cash Over and Short for $49.

Debit the shortage to increse the fund balance .

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