Please show answer )Points) On Decembr 1,2017, Summit, Insold machinery to a cut

Question

Please show answer )Points) On Decembr 1,2017, Summit, Insold machinery to a cutomer for 520,000 The ustomer could not pay at the time of agred to pay 10 monthe later and signed a 1 mondh note at 11% interest. How much interest revense was earned during 20a87 any intermediate caleulations to two decimal places and your final anawer to the nearent dolen) A) $2017 1,650 51,100 D) $2.200 1) (5 Points) A newly created design business, Rhodes Art, is finishing its first year of operations During the year, credit sales were $45,000 and collections of credit sales were $33,000. One account for S675 was writen off. Smart Art uses the aging-of-receivables method to account for bad debts expense. It has estimated $200 as uncollectible at year-end. What is the amount of the Bad Debes Expense for the first year of operations? A) $11,125 ) 5675 D) $200

Explanation / Answer

interest earned during 2018 will be for 9 months 20,000*11%*9/12 1650 option B) $1,650 4) since it uses aging method it uses allowance methol so uncollectible will be written off against allowance DR CR Allowance for bad debts 675 Account receivable 675 Bad debts expense 875 Allowance for bad debts 875 (200+675) option C) $875

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