【正文】 se should be ($400,000 180。 $.45 = $900 +$31,000 – $25,500 = $5,500(continued) P 51AReq. 2JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDIT20X4Dec. 2ShortTerm Investment………………..25,500 Cash (2,000 180。 .08) + ($10,000 180。 3/12 = $2,000(10 min.) E 5121. Stockton Bank has interest receivable and interest revenue. California Company has interest payable and interest expense. Interest for one month ($100,000 180。 2/12) + ($5,000 180。 .01)………………………...6,000 Allowance for Doubtful Accounts. 6,000BALANCE SHEETCurrent assets: Accounts receivable, net of allowance for doubtful accounts of $6,9001…………... $84,1002_____ _____ 1$900 + $6,000 = $6,900 2$91,000 – $6,900 = $84,100(15 min.) E 56Req. 1JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDITOct.Accounts Receivable……………………...100,000 Sales Revenue…………………………..100,000Oct.Cash…………………………………………..94,000 Accounts Receivable…………………...94,000Oct.Allowance for Uncollectible Accounts…1,700 Accounts Receivable…………………...1,700Oct.UncollectibleAccount Expense($100,000 180。 7/12)………………. 10,500Total……………………………………………….$210,500(10 min.) CP 51220X5a.Aug. 31Note Receivable — L. Holland……………1,000 Cash………………………………….…….1,000To lend money.20X6b.June 30Interest Receivable ($1,000 180。 .06 180。 6/12)………3,000(10 min.) CP 5111. Interest for:20X7($200,000 180。 .09 180。 .02)……………………………..2,000 Allowance for Uncollectible Accounts2,000Req. 2Accounts ReceivableAllowance forUncollectible Accounts28,00094,0001,600100,0001,7001,7002,00032,3001,900Net accounts receivable = $30,400 ($32,300 – $1,900)The store expects to collect an amount approximating the net receivable.Req. 3BALANCE SHEETCurrent assets: Accounts receivable, net of allowance for uncollectible accounts of $1,900…………………$30,400(1015 min.) E 57Req. 1JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDITOct.UncollectibleAccount Expense…..1,700 Accounts Receivable……………..1,700Req. 2Net accounts receivable is $32,300, the balance in Accounts Receivable, puted as follows:Accounts ReceivableBeg. bal.28,000Cr. sales100,000Collections94,000Writeoffs1,700End. bal.32,300The store does not expect to collect the full $32,300 because some credit customers are likely not to pay their accounts.(1530 min.) E 58Req. 1The credit balance at December 31 in Allowance for Doubtful Accounts should be $13,400. ($106,000 180。 .12 180。 .06 180。 .20) – $3,200 = $6,600] 5.$210,200 ($220,000 – $9,800) 6.a ($1,000,000 180。 $)………………..25,500Purchased investment.21Cash (2,000 180。 .03)……….…$12,000 Uncollectibleaccount expense by the direct writeoff method………… 7,000 (5,000)Net ine, corrected…………………….$48,000Req. 4KPMG’s suggestions make Bzensky look much less successful, decreasing the current ratio, the acidtest ratio, and net ine.(2030 min.) P 56AReq. 1JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDIT20X4Nov.30Note Receivable — Kelly Moore Paint Co…..60,000 Sales Revenue………………………………..60,000Dec.31Interest Receivable ($60,000 180。 $.32 = $1,600 +$46,250 – (5,000 180。 $)………………….46,250Purchased investment.14Cash (5,000 180。 1/12)…...500 Interest Revenue……………………………..50020X5Feb.18Note Receivable — Altex Co…………………..5,000 Accounts Receivable — Altex Co…………5,000Feb.20Cash………………………………………………..4,600Financing Expense………………………………400 Note Receivable — Altex Co……………….5,000Feb.28Cash………………………………………………..61,500 Note Receivable — Kelly Moore Paint Co..60,000 Interest Receivable…………………………..500 Interest Revenue ($60,000 180。 .04)………………………308d.Allowance for Uncollectibles……...269* Accounts Receivable…………….269*(continued) P 53AReq. 5Customers owed AOL $561.AOL expected to collect $464 ($561 – $97).Req. 6INCOME STATEMENT Service revenue……………………….$7,703 Uncollectibleaccount expense…….308(2535 min.) P 54AReq. 1JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDITNov.22Allowance for Doubtful Accounts………4,100 Accounts Receivable — Monet Corp.. 1,300 Accounts Receivable — Blocker, Inc.. 2,100 Accounts Receivable — M Street Plaza 700 Dec.31DoubtfulAccount Expense………………7,800 Allowance for Doubtful Accounts……7,800*_____*Computation:Required credit balance in Allowance for Doubtful Accounts based on aging of Accounts Receivable ($160,000 180。 .07 180。s=service revenue=$415=$sales365 365Days’ salesAverage netin average=accounts receivable=($37 + $42) / 2receivablesOne day’s sales$=35 days35 days’ sales in average receivables is okay relative to credit terms of net 30 days.(1015 min.) E 514Req. 1Average collection period:Millions of dollars One day’s sales=$256,329=$365 Days’ sales in average receivables=($1,254 + $1,569) / 2=2 days (average collection period)$Req. 2WalMart’s collection period is short because WalMart sells for cash and on credit cards and bank cards. Receivables are