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Question 4

At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$ 50,000
Credit sales	$ 125,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable	$ 112,500	debit
Allowance for doubtful accounts	$ 900	debit

An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

Question 5

On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable	Age of Accounts Receivable	Expected Percent Uncollectible
$ 900,000	Not yet due	1.20%
360,000	1 to 30 days past due	1.95
72,000	31 to 60 days past due	6.45
36,000	61 to 90 days past due	32.50
14,400	Over 90 days past due	67.00

Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.

The table displays a fill in the blank see below:

Accounts receivable x. percent uncollectable(#.##%). =. estimated uncollectible

not due _______________x_______________=___________

1 to 30. _______________x_______________=___________

31 to 60 _______________x_______________=___________

61 to 90 _______________x_______________=___________

over 90 _______________x_______________=____________

estimated balance of allowance for uncollectibles (debit or credit): $________

Question 6

On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable	Age of Accounts Receivable	Expected Percent Uncollectible
$ 900,000	Not yet due	1.20%
360,000	1 to 30 days past due	1.95
72,000	31 to 60 days past due	6.45
36,000	61 to 90 days past due	32.50
14,400	Over 90 days past due	67.00

Prepare the adjusting entry to record bad debts expense at December 31.

Note: Round percentage answers to nearest whole percent. Do not round intermediate calculations.

(the choices for recording the transactions in the drop down menu are: accounts payable; accounts receivable; Allowance for doubtful accounts; bad debts expense; cash; cost of goods sold; credit card expense; delivery expense; factoring fee expense; interest receivable; interest revenue; merchandise inventory; notes payable; notes receivable; purchases; purchase discounts; sales; sales discounts; sales returns and allowances; transportation in; wages expense)

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