On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for doubtful accounts.  December 31 is the company’s reporting date.  During 20X2, the company had the following transactions: The company made a credit sale of $300,000. The company wrote off the uncollectible accounts for $12,000. The company collected the receivable of $4,000 that had been written off previously.  a)Prepare journal entries to record the above three transactions. b)Assume that 1.5% and 2.5% of the company’s 80% and 20% accounts receivable, respectively, cannot be collected, prepare adjusting journal entry at the end of 20X2.  c)  On January 1, 20X1, the company received a $10,000 three-year note bearing interest at 10% annually. The annual interest is received at each December 31. The market interest rate is 12% annually.  September 30 is the company’s reporting date.  The company used the effective interest method to account for this long-term note receivable.                              Cash Received        Interest Income    Discount Amortized    Carrying Amount    Jan 1, 20x1                                                                                                                            9,520 Dec 31, 20x1          1,000                            1,142                            142                            9,662 Dec 31, 20x2          1,000                            1,159                            159                            9,821 Dec 31, 20x3          1,000                            1,179                            179                          10,000   Prepare journal entries on September 30, 20X2, and December 31, 20X2 (Note: round to the nearest dollar).

On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for doubtful accounts.  December 31 is the company’s reporting date.  During 20X2, the company had the following transactions:

1. The company made a credit sale of $300,000.
2. The company wrote off the uncollectible accounts for $12,000.
3. The company collected the receivable of $4,000 that had been written off previously. 

a)Prepare journal entries to record the above three transactions.

b)Assume that 1.5% and 2.5% of the company’s 80% and 20% accounts receivable, respectively, cannot be collected, prepare adjusting journal entry at the end of 20X2. 

c) 

On January 1, 20X1, the company received a $10,000 three-year note bearing interest at 10% annually. The annual interest is received at each December 31. The market interest rate is 12% annually.  September 30 is the company’s reporting date.  The company used the effective interest method to account for this long-term note receivable.

                             Cash Received        Interest Income    Discount Amortized    Carrying Amount   

Jan 1, 20x1                                                                                                                            9,520

Dec 31, 20x1          1,000                            1,142                            142                            9,662

Dec 31, 20x2          1,000                            1,159                            159                            9,821

Dec 31, 20x3          1,000                            1,179                            179                          10,000

Prepare journal entries on September 30, 20X2, and December 31, 20X2 (Note: round to the nearest dollar).