all 4 of them please! Write-off of Accounts Receivable E7A. Norcia Company, whic
ID: 2567871 • Letter: A
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all 4 of them please!
Write-off of Accounts Receivable E7A. Norcia Company, which uses the allowance method, began the year with Accounts Receivable of $32,500 and an allowance for uncollectible accounts of $3,200 (credit) The company sold merchandise to Bruce Willis for $3,600 and later received $1,200 from Willis. The rest of the amount due from Willis had to be written off as uncollect ible. Using T accounts, show the beginning balances and the effects of the Willis trans- actions on Accounts Receivable and Allowance for Uncollectible Accounts. What is the amount of net accounts receivable before and after the write-off Interest Computations E8A. Determine the interest on the following notes. (Round to the nearest cent.) a. $38,760 at 10 percent for 90 days. b. $27,200 at 12 percent for 60 days. c. $30,600 at 9 percent for 30 days. d. $51,000 at 15 percent for 120 days. c. $18,360 at 6 percent for 60 days. Notes Receivable Calculations E9A. Determine the maturity date, interest at maturity, and maturity value for a 90-day 10 percent, $18,000 note from Archer Corporation dated February 15. (Round to the nearest cent.) Notes Receivable Calculations E10A. Determine the maturity date, interest in 2013 and 2014, and maturity value for a 90-day, 12 percent, $15,000 note from a customer dated December 1, 2013, assuming a December 31 year end. (Round to the nearest cent.)Explanation / Answer
1-
T- Accounts
Accounts receivable
opening balance
32500
cash
1200
sales revenue
3600
allowance for doubtful debts
2400
balance
32500
total
36100
36100
allowance for doubtful debts
bills receivables
2400
opening balance
3200
balance
800
total
3200
3200
opening balance in accounts receivable
year end balance
Accounts receivables
32500
32500
allowance for doubtful debts
3200
800
2-
principal
interest rate
time period
Interest payment = principal*rate* period / 360
38760
10%
90
969
27200
12%
60
544
30600
9%
30
229.5
51000
15%
120
2550
18360
6%
60
183.6
3-
Month
No of days in month
feb
16
mar
31
April
30
total no of day upto April 30
77
No of days in May = 90-77
13
Maturity Date
13-May
interest at maturity = (pricipal*rate * period)/360
(18000*10%*90)/360
450
Maturity value = pricipal+interest due
18000+450
18450
4-
Month
No of days in month
Dec
30
Jan
31
Feb
28
mar
1
total no of day upto April 30
90
Maturity Date
1-Mar
Interest in 2013
(15000*12%*30)/360
150
Interest in 2014
(15000*12%*60)/360
300
total interest
450
principal
15000
value at maturity
15000+450
15450
interest at maturity = (pricipal*rate * period)/360
450
Maturity value = pricipal+interest due
15000+450
15450
1-
T- Accounts
Accounts receivable
opening balance
32500
cash
1200
sales revenue
3600
allowance for doubtful debts
2400
balance
32500
total
36100
36100
allowance for doubtful debts
bills receivables
2400
opening balance
3200
balance
800
total
3200
3200
opening balance in accounts receivable
year end balance
Accounts receivables
32500
32500
allowance for doubtful debts
3200
800
2-
principal
interest rate
time period
Interest payment = principal*rate* period / 360
38760
10%
90
969
27200
12%
60
544
30600
9%
30
229.5
51000
15%
120
2550
18360
6%
60
183.6
3-
Month
No of days in month
feb
16
mar
31
April
30
total no of day upto April 30
77
No of days in May = 90-77
13
Maturity Date
13-May
interest at maturity = (pricipal*rate * period)/360
(18000*10%*90)/360
450
Maturity value = pricipal+interest due
18000+450
18450
4-
Month
No of days in month
Dec
30
Jan
31
Feb
28
mar
1
total no of day upto April 30
90
Maturity Date
1-Mar
Interest in 2013
(15000*12%*30)/360
150
Interest in 2014
(15000*12%*60)/360
300
total interest
450
principal
15000
value at maturity
15000+450
15450
interest at maturity = (pricipal*rate * period)/360
450
Maturity value = pricipal+interest due
15000+450
15450
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