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all 4 of them please! Write-off of Accounts Receivable E7A. Norcia Company, whic

ID: 2567871 • Letter: A

Question

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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