Analyzing and Reporting Receivable Transactions and Uncollectible Accounts Using Percentage- of-Sales Method to Estimate Bad Debt Expense

At the beginning of the year, Penman Company had the following account balances.

Accounts receivable...................... $356,000

Allowance for uncollectible accounts......... 21,400

During the year, Penman’s credit sales were $2,008,000, and collections on accounts receivable were $1,963,000. The following additional transactions occurred during the year.

Feb. 17 Wrote off Bava’s account, $8,200.

May 28 Wrote off Reed’s account, $4,800.

Dec. 15 Wrote off Fischer’s account, $2,300.

Dec. 31 Recorded the bad debts expense assuming Penman’s policy is to record bad debts expense as 0.9% of credit sales. (Hint: The allowance account is increased by 0.9% of credit sales

regardless of write-offs.)

Compute the ending balances in accounts receivable and the allowance for uncollectible accounts. Show how Penman’s December 31 balance sheet reports the two accounts

1. Where is nitrogen found in living organisms?
2. How do living organisms uptake nitrogen?
3. What percentage of the atmosphere is nitrogen?
4. Describe the nitrogen fixation process. Be sure to include nitrate, nitrogen gas, nitrite, and ammonium.
5. What is assimilation?

Express monetary answers to the nearest whole dollar. Express percentage answers to the nearest hundredth

22.Tiffanywould like to buy a delivery vehicle for hersmall business. Shecan afford to make a down payment of $7,500 and pay monthly (end-of-month) payments of $1,350. If the term is 48months and the loan rate is 5.24 percent(APR), then what is the maximum that Tiffanycan pay for the delivery vehicle?

23Geraldpurchases a house for $250,000 by getting a mortgage for $225,000 and paying a down payment of $25,000. It is a 20-year mortgage with a 4.92 percent interest rate and Geraldmakes a payment at the end of each month. Suppose the house appreciates at a 2.25 percent rate per year. If equity is the value of the house minus how much is owed on the house, then how much equity does Geraldhave at the end of ten years?

Today, you sold 1 share of Litchfield Design stock. The percentage return over the past quarter (from 3 months ago to today) for these shares was 9.86 percent. You purchased the shares 3 months ago at a price of 111.98 dollars per share. You just received 6.36 dollars in dividends. What was the price of the stock when you sold it?

1,Ceteris paribus, which countries would you expect to rely MORE on foreign trade as a percentage of their economic activity?

A larger countries, like the US.

B smaller countries, like Sweden

2. An economy’s net exports always equals (choose one or both)

A the difference between its saving and its investment

B its trade balance

3. An economy’s trade balance always equals (choose one or both)

A net capital outflow

B net foreign investment

Question 3: The Bank of Canada once again reduced its key rate by 0.5 percentage point on March 24, aligning with the United States. What are the elements of aggregate demand that the Bank of Canada hopes to stimulate through this monetary policy?

The consumer price index increases from 129.7 to 136.4. By how much percentage wise should your employer increase your wage if he wants to keep your purchasing power constant? Round to two decimal places and do not enter a % sign.

If the Federal Reserve were to purchase government bonds in the open market, we would expect interest rates in the economy to (increase/decrease)_______ and therefore spending in the future is likely to (increase/decrease)_______.