Solved by verified expert :1. At the completion of the current fiscal year ending December 31, 2014, the balance in AccountsReceivable for the CertaPro Painters was $22,300. Credit sales for the year were $515,000. Make thenecessary journal entries in general journal form for each of the following assumptions.A. Allowance for bad debts has a credit balance of $870. The percentage of sales method is used and baddebts expense is estimated to be 1% of credit sales.DateDescriptionDebitCreditB. Allowance for bad debts has a credit balance of $870. The percentage of receivables method is usedand an analysis of the accounts produces an estimate of $1,580 in uncollectable accounts.DateDescriptionDebitCreditC. Allowance for bad debts has a debit balance of $615. The percentage of sales method is used and baddebts expense is estimated to be 0.8% of credit sales.DateDescriptionDebitCreditD. Allowance for bad debts has a debit balance of $615. The percentage of receivables method is used andan analysis of the accounts produces an estimate of $1,510 in uncollectable accounts.DateDescriptionDebitCredit2.Record the following entries for the Heart and SoulCo. in the general journal:Jan 6The accounts receivable of Marissa Marco was determined to be uncollectable and written off,$6200.Mar 8Notice was received that Paul Dante was bankrupt. His balance of $4200 was written off.May 28 Reinstated the account of Marissa Marco and we received full payment of her outstandingaccount balance.DateDescriptionDebitCredit3. The following is a list of outstanding note payable as of December 31, 2014. Interest is paid at maturity.Compute the accrued interest as of the end of the year and then prepare the adjusting journal entry foraccrued interest in the general journal.Date of NotePrincipalInterest RateTermAccrued Interest10/14,5008.5%90 days11/23$7,2007%120 days12/16$13,00011%150 daysDateDescriptionDebitCredit4.Record the following transactions for Pro Line Communications Inc. in the general journal.May 30 Accepted a 60-day, 12% note for $11,000 from Photo Master on an account receivable.Jul 16Accepted a 60-day, 11% note for $6,000 from Impact Images in fulfillment of a sale.Jul 29Received interest due on the Photo master note. The note is renewed for 45 days at 13%interest.Aug 15Discounted the note from Impact Images at the bank at a 10% discount rate.Aug 28Received payment in full on the Photo Master note.Set 14Received notice from the bank that the Impact Images note was dishonored. We paid thebank for the dishonored note plus interest.Oct 20The dishonored note from Impact Images is paid, plus 10% interest on the maturity value ofthe note.DateDescriptionDebitCredit
