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Estimating uncollected accounts and recording notes

1.Discuss the valuation of accounts receivable
2.Calculate estimated uncollectible accounts under the two allowance methods: the percentage of sales and
percentage of receivables methodse
3.Journalize the issuance and receipt transactions related to notes receivable
4.Calculate interest on notes payable using the principle x rate x time formula

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Problem 1: Calculating and journalizing uncollectible accounts using the percentage of credit sales method.
Problem 2: Calculating and journalizing uncollectible accounts using the percentage of accounts receivable
method and an A/R aging schedule.
Problem 3: Determining maturity date, maturity value and interest on notes. Record the issuance of notes, and
receipt (honoring) of notes at maturity.

Sample Solution

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