Question

1. On December​ 1, 2017,​ Summit, Inc. sold machinery to a customer for​ $22,000. The customer could not pay at the time of sale but agreed to pay 10 months later and signed a​ 10-month note at​ 10% interest. How much interest revenue was earned during​ 2018? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

2.The Allowance for Bad Debts account has a credit balance of​ $8,300 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the​ aging-of-receivables method, the​ company's management estimates that uncollectible accounts will be​ $14,700. The balance of the Allowance for Bad Debts reported on the balance​ sheet will be $

3.The Allowance for Bad Debts account has a debit balance of​ $9,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the​ aging-of-receivables method, the​ company's management estimates that uncollectible accounts will be​ $13,000. Bad debts expense will be reported on the income​ statement as $

Answer 1