Instruction: Answer all questions and show all workings. Two companies have asked you to record journal...

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Accounting

Instruction: Answer all questions and show all workings.
Two companies have asked you to record journal entries in twodifferent areas associated with receivables, at the end of2017.
Company I
Mandalay Company requests that you record journal entries forits bad debt expense and uncollectible accounts receivable in 2017.Mandalay’s January 1, 2017, balances relevant to accountsreceivable are as follows:
                                                                                   Dr                               Cr
Accountsreceivable                                             $400,000
Allowance for doubtful accounts                                                                $20,000
During 2017:
• $45,000 of accounts receivable were uncollectible, and no moreeffort to collect these accounts will be made.
• Total sales were $1,200,000, of which $200,000 were cashsales.
• $900,000 was collected on account.
Required:
a. i) If Mandalay used the credit sales method to estimate baddebt expense and uses 4% of credit sales as its estimate of baddebts, provide the journal entries at December 31 to recordwriteoffs
and bad debts expense for 2017. [6 marks]
ii) Provide the December 31, 2017, Statement of FinancialPosition disclosure for net accounts
receivable. [12 marks]
b. i) If Mandalay decided to use the accounts receivable methodto estimate net accounts receivable, and uses 9% of accountsreceivable at year end as its estimate of uncollectibles, providethe journal entries at December 31 to record write-offs and baddebt expense for 2017.
[15 marks]
ii) Provide the December 31,2017, balance sheet disclosure fornet accounts receivable.
[3 marks]
Company II
White Mountain Company requests that you record journal entriesfor a note it received in 2017. On April 1, 2017, White MountainCompany sold merchandise for $12,000 and received a $12,000,3-year, 10% note. The note calls for three equal annual payments tobe made beginning March 31, 2018. The market rate for notes withsimilar risk is 10%.
Required:
Provide the necessary journal entries for this note on thefollowing dates:
1. April 1, 2017 [3 marks]
2. December 31, 2017 [3 marks]
3. March 31, 2018 [8 marks]

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Instruction: Answer all questions and show all workings.Two companies have asked you to record journal entries in twodifferent areas associated with receivables, at the end of2017.Company IMandalay Company requests that you record journal entries forits bad debt expense and uncollectible accounts receivable in 2017.Mandalay’s January 1, 2017, balances relevant to accountsreceivable are as follows: Dr CrAccountsreceivable $400,000Allowance for doubtful accounts $20,000During 2017:• $45,000 of accounts receivable were uncollectible, and no moreeffort to collect these accounts will be made.• Total sales were $1,200,000, of which $200,000 were cashsales.• $900,000 was collected on account.Required:a. i) If Mandalay used the credit sales method to estimate baddebt expense and uses 4% of credit sales as its estimate of baddebts, provide the journal entries at December 31 to recordwriteoffsand bad debts expense for 2017. [6 marks]ii) Provide the December 31, 2017, Statement of FinancialPosition disclosure for net accountsreceivable. [12 marks]b. i) If Mandalay decided to use the accounts receivable methodto estimate net accounts receivable, and uses 9% of accountsreceivable at year end as its estimate of uncollectibles, providethe journal entries at December 31 to record write-offs and baddebt expense for 2017.[15 marks]ii) Provide the December 31,2017, balance sheet disclosure fornet accounts receivable.[3 marks]Company IIWhite Mountain Company requests that you record journal entriesfor a note it received in 2017. On April 1, 2017, White MountainCompany sold merchandise for $12,000 and received a $12,000,3-year, 10% note. The note calls for three equal annual payments tobe made beginning March 31, 2018. The market rate for notes withsimilar risk is 10%.Required:Provide the necessary journal entries for this note on thefollowing dates:1. April 1, 2017 [3 marks]2. December 31, 2017 [3 marks]3. March 31, 2018 [8 marks]