Hi! Is there anyway you can complete these within the next hour for me?
- Chao Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense. As of December 31, Chao’s accountant prepared the following data about ending receivables: $40,000 was not yet due (1 percent expected not to be collected), $20,000 was 1-60 days past due (4 percent expected not to be collected), and $4,000 was over 60 days past due (8 percent expected not to be collected). At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $400. In the journal provided, prepare Chao’s end-of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debit balance.
- Assuming a perpetual inventory system is used, use the following information to calculate cost of goods sold on an average-cost basis.
|
Dec. |
1 |
Beginning inventory |
50 units @ $22 |
|
|
9 |
Purchases |
50 units @ $24 |
||
|
17 |
Sales |
25 units |
||
|
22 |
Purchases |
75 units @ $27 |
||
|
27 |
Sales |
40 units |
Prepare journal entries for the following transactions involving notes payable for Homer Company, whose fiscal year ends June 30. Omit explanations.
|
June |
20 |
Paid a trade account payable with a 90-day, 9 percent $60,000 note. Interest is in addition to the face value. |
|
30 |
Made end-of-year adjusting entry to accrue interest expense for the note. |
|
|
30 |
Made end-of-year closing entry pertaining to interest expense. |
|
|
Sept. |
18 |
Paid amount due on note, plus interest. |
