Answer:
1) Dr Cash $21,449
Dr Loss on Sale $2,651
Cr Account Receivable $24,100
2) Dr Cash $57,868
Dr Interest Expense $5,032
Cr Note Receivable $62,900
3) Bad Debt Expense $7,860
Allowance for Doubt Acc $7,860
4) Bad Debt Expense $4,695
Allowance for Doubt Account $4,695
Explanation:
Preparation of the journal entries required to record each cases
1) Dr Cash $21,449
($24,100-$2,651)
Dr Loss on Sale $2,651
(11%*$24,100)
Cr Account Receivable $24,100
2) Dr Cash $57,868
($62,900-$5,032)
Dr Interest Expense $5,032
(8%*$62,900)
Cr Note Receivable $62,900
3) Bad Debt Expense $7,860
Allowance for Doubt Acc $7,860
[( 7%*82,000)+$2,120]
4) Bad Debt Expense $4,695
Allowance for Doubt Account $4,695
($5,899-$1,204)
