WORK SHEET OF ACCOUNT RECEIVABLE

Project one
Prepare journal entries to record the following transactions entered in to by Meskel Company
during the year 20X2.
September 1- Received a Br. 10,000, 12%, 60-day note from Yasin Co. as full settlement of his
open account.
October 20- Sold merchandise on account to Heaven Co. for Br 25,000 by receiving a
90-day, 10% note.
October 31- Received full payment from Yasin Co. for notes received on September 1.
December 31- Record the adjusting entry required for accrued interest from October 20.
Transaction (assume that the Accounting period ends on December 31.)
Project two
The Lasta Co. uses the allowance method for estimating uncollectible accounts. Prepare journal
entries to record the following transactions.
January 02- Sold merchandise to Nile Co. for Br. 30,000, term n/15.
February 15- Received Br. 20,000 from Nile Co. on account.
April 20- Written-off as uncollectible the remaining balance of Nile Co. account when the
business declared bankruptcy.
June 1- unexpectedly received a check for Br. 6000 from Nile Co.
Instruction
Prepare journal entries to record the following transactions.
Project three
Compute the missing amounts for each of the following notes.
Principal Interest Rate Time Total Interest
(a) Br. 60,000 10 % 1.5 years ?
(b) Br. 200,000 ? 9 months Br. 17,250
(c) ? 12 % 60 days Br. 1,500
(d) Br. 85,000 7% ? 1,487.50
Instruction
Determine the missing amount
project four
Meskerem Co. holds a 90-day, 10% note for Br. 100,000 dated June-12 that was received from a
customer on account. On June 30, the note is discounted at Bunna Bank at the rate of 12.5 %.
Determine the maturity value of the note.
Determine the number of days in the discount period
Determine the amount of the discount.
Determine the amount of the proceeds
Present the journal entry required to record the discounting of the note on June 30.

Project five
Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co.
received the following notes:
Date Face Amount Term Interest Rate
1. Jan. 5 $25,000 90 days 5%
2. Mar.12 45,000 65 days 6
3. July 6 43,000 120 days 10
4. Aug. 20 440,000 95 days 9
5. Nov. 11 200,000 30 days 7
6. Dec. 18 230,000 120 days 6
Instructions
Determine for each note (a) the due date and (b) the amount of interest due at maturity,
identifying each note by number.
Project six
Ditzler Company, a construction supply company, uses the allowance method of accounting for
uncollectible accounts receivable. Selected transactions completed by Ditzler Company are as
follows:
Feb. 1. Sold merchandise on account to Ames Co., $8,000. The cost of the merchandise sold
was $4,500.
Mar. 15. Accepted a 60-day, 12% notes for $8,000 from Ames Co. on account.
Apr. 9. Wrote off a $2,500 account from Dorset Co. as uncollectible.
21. Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14% note.
May 14. Received the interest due from Ames Co. and a new 90-day, 14% note as a renewal of
the loan. (Record both the debit and the credit to the notes receivable account.)
June 13. Reinstated the account of Dorset Co., written off on April 9, and received $2,500 in full
payment.
July 20. Jill Klein dishonored her note.
Aug. 12. Received from Ames Co. the amount due on its note of May 14.
19. Received from Jill Klein the amount owed on the dishonored note, plus interest for
30 days at 15%, computed on the maturity value of the note.
Dec. 16. Accepted a 60-day, 12% note for $12,000 from Global Company on account.
31. It is estimated that 3% of the credit sales of $1,375,000 for the year ended December31
will be uncollectible.
Instructions
1. Journalize the transactions.
2. Journalize the adjusting entry to record the accrued interest on December 31 on the
Global Company note.

Project seven
To illustrate, assume the following data for ExTone Company on December 31, 2010,
Before any adjustments:
Balance of Accounts Receivable ---------------------------------------------- $240,000
Balance of Allowance for Doubtful Accounts -------------------------------3,250 (Cr.)
Total credit sales -----------------------------------------------------------------3,000,000
Bad debt as a percent of credit sales -------------------------------------------3/4%
The prepare adjusting entry for uncollectible estimate accounts on December 31, 2010
Project eight
At the end of the current year, Accounts Receivable has a balance of $800,000; Allowance for
Doubtful Accounts has a credit balance of $7,500; and net sales for the year total $3,500,000.
Bad debt expense is estimated at 1⁄2 of 1% of net sales.
Determine (a) the amount of the adjusting entry for uncollectible accounts;
(b) The adjusted balances of Accounts Receivable, Allowance for Doubtful
Project nine
Journalize the following transactions using the allowance method and direct write off methods of
accounting for uncollectible receivables.
July 9. Received $1,200 from Jay Burke and wrote off the remainder owed of $3,900 as
uncollectible.
Oct. 11. Reinstated the account of Jay Burke and received $3,900 cash in full payment.