McGraw Hill Connect, Chapter 9 Accounting assignment includes:<\/p>\n\n\n\n
CHAPTER 9 HOMEWORK and CHAPTER 9 QUIZ completed online through McGraw Hill Connect site with my credentials DUE NO LATER THAN Sunday, 04-21-2013<\/p>\n\n\n\n
AS WELL AS:<\/p>\n\n\n\n
Upload DOCUMENTS of Chapter 9 TEST submitted to me through homework market DUE NO LATER THAN Sunday 04-21-2013 —- SEE BELOW:<\/p>\n\n\n\n
PROBLEM #1 25 points<\/p>\n\n\n\n
At the beginning of the year, Sonoran Park Equipment’s accounts receivable balance was $105,000 and the allowance for doubtful accounts had a $1,950 credit. Sonoran’s sales in the current year were $787,500, 80% of which were on credit. Collections on account during the year were $502,000. Additionally, Sonoran wrote off $3,000 of uncollectible accounts during the year. It is estimated that 6% of the year end accounts receivable are expected to be uncollectible.<\/p>\n\n\n\n
Using the allowance for bad debts based on accounts receivable aging method, determine the journal entry for the estimate of bad debts. What is Sonoran’s net realizable value of accounts at the end of the year?<\/p>\n\n\n\n
A. Journal Entry<\/p>\n\n\n\n
Show work here:<\/p>\n\n\n\n
B. Net Realizable Value<\/p>\n\n\n\n
PROBLEM #2 10 points<\/p>\n\n\n\n
Good Day Service Center received a 120 day, 6% note for $50,000, dated April 12, 20XX from a customer on account. Determine the (a) due date of the note, (b) the maturity value of the note, and (c) the journal entry to record the receipt of the payment of the note at maturity. Use a 360 day year.<\/p>\n\n\n\n
a)<\/p>\n\n\n\n
b)<\/p>\n\n\n\n
c)<\/p>\n\n\n\n
PROBLEM #3 5 points<\/p>\n\n\n\n
What is the difference between an account receivable and a note receivable?<\/p>\n\n\n\n
The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n Here’s how you can approach your Chapter 9 Accounting assignment:<\/p>\n\n\n\n [ [ Accounts receivable and notes receivable both represent amounts owed to a business, but they have key differences.<\/p>\n\n\n\n Accounts receivable<\/strong> arise from credit sales and are usually collected within a short period, typically 30 to 60 days. These receivables do not require a formal written agreement; instead, they are recorded as part of a company\u2019s regular sales transactions. Since they are unsecured, they carry a higher risk of non-payment, and businesses often estimate bad debt expenses to account for possible losses.<\/p>\n\n\n\n Notes receivable<\/strong>, on the other hand, are formal written promises to pay a specific amount at a future date. These notes include additional terms, such as interest rates and maturity dates, which make them legally binding and more enforceable than accounts receivable. They can be short-term or long-term and usually arise when a customer requests an extended payment period or when a loan is given. Notes receivable typically carry lower risk due to their legal nature and potential for collateral.<\/p>\n\n\n\n From an accounting perspective, accounts receivable are recorded as current assets, whereas notes receivable may be classified as current or non-current, depending on the due date. Additionally, interest revenue is recognized on notes receivable, while accounts receivable do not generate interest unless the payment is late and incurs finance charges.<\/p>\n\n\n\n Overall, notes receivable provide businesses with a stronger legal claim over payments, making them a more secure form of credit extension. However, managing them requires tracking maturity dates and accrued interest, whereas accounts receivable are simpler but riskier due to their lack of legal documentation.<\/p>\n\n\n\n This should help you complete your assignment efficiently! Let me know if you need further clarifications. \ud83d\ude0a<\/p>\n","protected":false},"excerpt":{"rendered":" McGraw Hill Connect, Chapter 9 Accounting assignment includes: CHAPTER 9 HOMEWORK and CHAPTER 9 QUIZ completed online through McGraw Hill Connect site with my credentials DUE NO LATER THAN Sunday, 04-21-2013 AS WELL AS: Upload DOCUMENTS of Chapter 9 TEST submitted to me through homework market DUE NO LATER THAN Sunday 04-21-2013 —- SEE BELOW: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-187285","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=187285"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187285\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=187285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=187285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=187285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nProblem #1<\/strong><\/h3>\n\n\n\n
Journal Entry for Estimated Bad Debts<\/strong><\/h4>\n\n\n\n
\n
\n
[
105,000 + 630,000 – 502,000 – 3,000 = 230,000
]<\/li>\n<\/ul>\n\n\n\n\n
\n
\n
\n
[
13,800 – (1,950 – 3,000) = 14,850
]<\/li>\n<\/ul>\n\n\n\n\n
Bad Debt Expense 14,850 \n Allowance for Doubtful Accounts 14,850 <\/code><\/pre>\n\n\n\n
\n\n\n\nNet Realizable Value of Accounts Receivable<\/strong><\/h3>\n\n\n\n
\\text{Net Realizable Value} = \\text{Ending A\/R} – \\text{Allowance}
]
[
= 230,000 – 13,800 = 216,200
]<\/p>\n\n\n\n
\n\n\n\nProblem #2<\/strong><\/h3>\n\n\n\n
(a) Due Date of the Note<\/strong><\/h4>\n\n\n\n
\n
(b) Maturity Value of the Note<\/strong><\/h4>\n\n\n\n
\\text{Interest} = \\text{Principal} \\times \\text{Rate} \\times \\frac{\\text{Time}}{360}
]
[
= 50,000 \\times 6\\% \\times \\frac{120}{360} = 1,000
]
[
\\text{Maturity Value} = 50,000 + 1,000 = 51,000
]<\/p>\n\n\n\n(c) Journal Entry for Receipt of Payment at Maturity<\/strong><\/h4>\n\n\n\n
Cash 51,000 \n Notes Receivable 50,000 \n Interest Revenue 1,000 <\/code><\/pre>\n\n\n\n
\n\n\n\nProblem #3: Difference Between Accounts Receivable and Notes Receivable (300 words)<\/strong><\/h3>\n\n\n\n
\n\n\n\n