Answer:
uncollectible amount expense 1,040 debit
allowance for uncollectible amount 1,040 credit
supplies expense 3,450 debit
supplies 3,450 credit
interest receivables 110 debit
interest revenue 110 credit
salaries expense 35,300 debit
salaries payable 35,300 credit
Explanation:
Accounts Receivables 15,400
during the year 90,400
write-off (4,100)
collected <u> 88,000</u>
ending balance 13,700
due amounts 4,700 x 20% chance = 940
remaining 8,000 x 5% = 400
total allowance 1,340
balance of the allowance
4,400 - 4,100 writ-off = 300
adjustment needed 1,340 - 300 = 1,040
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supplies 4,300 ending supplies 850
the difference is the amount used thus, the expense
supplies expense 3,450
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principal x time x interest
22,000 x 1 /12 x 6% =
22,000 x 0.5% = 110
as we are not receiving the interest now, we generate a receivable
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we reocgnize the expense and the payable associated with salaries
