PLEASE SHOW ALL OF YOUR WORK! 1.) Calculate the interest for 6 months given the

Question

PLEASE SHOW ALL OF YOUR WORK! 1.) Calculate the interest for 6 months given the following information (1 Point) Face Value of the Note Receivable: $1,000 Annual Interest Rate: 9% A) $1,000 B) $90 C) $45 D) $1.50 2.) The adjusting entry to record accrued interest on a note receivable requires which c the following (1 Point): A) Debit to Interest Income and a credit to Notes Receivable B) Debit to Interest Receivable and a credit to Interest Revenue C) Debit to Interest Revenue and a credit to Cash D) Debit to Interest Revenue and a credit to Interest Receivable 3.) Meow Mix Co. uses the percentage of receivables basis to record bad debts expense and concludes that 5% of accounts receivable will become uncollectible. The general ledger shows $650,000 of sales revenue and $850,000 of accounts receivable. Assume that allowance for doubtful accounts has a DEBIT balance of $4,500. Prepare the necessary adjusting journal entry to record bad debts expense. (2 Points) A) Bad Debt Expense 42,500 Allowance for Doubtful Accounts 42,500 B) Bad Debt Expense 32,500 Allowance for Doubtful Accounts 32,500 C) Allowance for Doubtful Accounts 42,500 Bad Debt Expense 42,500 D) Bad Debt Expense 47,000 Allowance for Doubtful Accounts 47,000

Explanation / Answer

Answer = 1) interest Amount = $ 1,000 X 9% X 6/12 = $                           45 Answer = Option C = $ 45 Answer = 2) Entry for record the interest on note receivable is Debit to interest Receivable and credit to interest revenue Answer = Option B Answer = 3) Account Receivable = $               8,50,000 Provission for Bad Debts 5% $                   42,500 Add: Debit Balance in Allowance for doubful debts = $                     4,500 Total amount for credit $                   47,000 Answer = Option D (As below) Journal Entries Date Account Title and explanation Debit Credit -------- Bad Debt Expenses $                   47,000          To Allowance for Doubtfull Accounts $               47,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.