Answer:
<em>Part 1. The entry to record sales revenue.</em>
Trade Receivables $179,000 (debit)
Revenue $179,000 (credit)
<em>Part 2. The entry to record bad debt expense</em>
Bad Debts $ 20,000 (debit)
Trade Receivable $ 20,000 (credit)
<em>Part 3. The entry to record payments on account</em>
Trade Payable $ 121,000 (debit)
Cash $ 121,000 (credit)
<em>Part 4. The entry to record cash interest received</em>
Cash $ 35,900 (debit)
Interest Receivable $ 35,900 (credit)
Explanation:
<em>Part 1. The entry to record sales revenue.</em>
Open Total Trade Receivable Account and Calculate Sales as the missing Balance:
$159,000 + $6,000 + $ 55,000 - $ 410000 = $179,000
<em>Part 2. The entry to record bad debt expense</em>
Bad Debts are written against Trade Receivables. No need to open Allowance for Doubtful Debts Account
<em>Part 3. The entry to record payments on account</em>
Open Total Trade Payable Account and Calculate Cash as the missing Balance:
$25,000+$150,000-$54,000 = $121,000
<em>Part 4. The entry to record cash interest received</em>
Open Interest Receivable Account and Calculate Cash as the missing Balance:
$3,000+$35,000-$2,100=$35,900