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Assignment CK Inc. had net sales in 2020 of $800,000. On Dec. 31, 2020, the following information was listed which was about the balances in selected accounts before adjusting entries: Account receivable debit balance: $150,000 Allowance for doubtful accounts debit balance: $1,500 Estimated uncollectable receivable: 2% of net sales 1. At Dec. 31, 2020, on the CK Inc.'s statement of financial position, what is the cash realizable value of the receivables? 2. Please summarize and describe the direct write-off method and the allowance method of recognizing bad debt expense, and please list the reasons why the allowance method is preferable in accordance with IFRS. AR Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $2,400,000 on March 1, $1,980,000 on June 1 , and $3,000,000 on December 31 . Arlington Company borrowed $1,200,000 on January 1 on a 5year, 12% note to help finance the construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable. 1. What are the weighted-average accumulated expenditures? 2. What is the weighted-average interest rate used for interest capitalization purposes? 3. What is the avoidable interest for AR Company? 4. What is the actual interest of AR Company? 5. What amount of interest should be charged to the expense

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