This document contains accounting transactions and adjusting entries for multiple companies. It lists entries related to accounts receivable, uncollectible accounts, interest income, cash accounts, payroll expenses and customer credit balances. Key figures include total accounts receivable of $769,574, allowance for bad debts of $17,457, interest income of $4,586 and receivables from officers and employees of $9,700.

1. CHAPTER 4 RECEIVABLES AND RELATED REVENUES
Problem 2 (Magnolia Company)
1. Accounts Payable – B 74,000
Accounts Receivable – B 74,000
2. Accounts Receivable – L 16,200
Accounts Receivable – C 16,200
3. No disposition yet (Customer D)
4. Sales 24,000
Accounts Receivable – E 24,000
5. Inventory 16,500
Cost of Sales 16,500
6. Sales 60,000
Accounts Receivable – F 15,000
Advances from Customers 45,000
7. Inventory 59,000
Cost of Sales 59,000
8. Sales 2,500
Accounts Receivable – H 2,500
10,000 / 200 x (200 – 150) = 2500
9. Sales 180,000
Accounts Receivable – I 180,000
10. Inventory 120,000
Cost of Sales 120,000
11. Sales Returns and Allowances 5,000
Sales 5,000

2. Problem 3 (Blooms Company)
P a s t D u e
Account Per Client Adjustment Per Audit Not due 1-60 days 61-120
days
Over 120
days
1 12,000 12,000 3,000 8,000 1,000
2 22,000 22,000
3 97,600 (98,800)
4 20,000 20,000 10,000 10,000
5 55,000 55,000 2,220 52,780
6 7,500 7,500 7,500
Total 215,300 116,000 27,220 68,280 11,000 10,000
Age Classification Balance per Audit % Uncollectible Required Allowance
Not due 27,220 1% 272.20
1-60 days past due 68,280 2% 1,365.60
61-120 days past due 11,000 5% 550.00
Over 120 days past due 10,000 50% 5,000.00
Total 7,187.80
Note Receivable 100,000
Interest income 2,400
Accounts receivable (customer 3) 97,600
Interest Receivable 500
Interest income 500
Uncollectible Accounts Expense 2,188
Allowance for Doubtful Accounts 2,188
7,188 – 5,000 = 2,188

3. MEEMEE, INC.
Adjusting Entries:
1. Miscellaneous Expenses 1,260
Receivables from Officers & Employees 500
Cash – Petty Cash Fund 1,760
2. Other Non-Current Financial Assets 400,625
Cash in Bank 400,000
Interest Income 625
Reclassified Security Bank SA
3. Cash in Bank – BPI SA 394
Interest Income 394
4. Accounts Receivable – 31-60 days overdue 12,800
Cash in Bank – BPI SA 12,800
5. Accounts Receivable – Dishonored Notes 5,500
Cash in Bank – BPI SA 5,500
Notes Receivable Discounted 5,000
Notes Receivable 5,000
6. Cash in Bank – BPI CA Payroll 15,600
Accrued Payroll 15,600
5,200 + 10,400
7. Miscellaneous Expenses 150
Cash in Bank – BPI CA Payroll 150
8. Cash in Bank – BPI CA General 45,200
Accounts Payable 45,200
9. Accounts Payable 900
Miscellanous Expenses 150
Cash in Bank – BPI CA General 1,050
10. Accounts Receivable – Current 9,000
Accounts Receivable – 31-60 days overdue 4,800
Customers’ Credit Balances 13,800
11. Receivables from Officers and Employees 2,000
Accounts Receivable – Current 2,000

4. 12. Allowance for Bad Debts 5,000
Accounts Receivable – over 90 days 5,000
13. Accounts Receivable – Overdue Notes 15,250
Notes Receivable 15,000
Interest Income 250
14. Receivable from Officers and Employees 6,800
Notes Receivable 6,800
15. Interest Receivable 517
Interest Income 517
Creative: P 10,000 x 24% x 64/360 = 427
President: P 6,800 x 25% x 19/360 = 90
Total 517
16. Allowance for Bad Debts 4,543
Bad Debts Expense 4,543
Analysis of Accounts Receivable
Age Class Per Client Adjustment Per Audit % Uncollectible Req. Allow.
Current 362,412 9,000
(2,000)
369,412 ½% 1,847
1-30 days past due 202,895 4,550 207,445 1% 2,074
31-60 days past due 130,480 12,800
4,800
148,080 3% 4,442
61-90 days past due 17,500 - 17,500 10% 1,750
Over 90 days past
due
11,387 (5,000) 6,387 50% 3,194
Dishonored notes - 5,500
15,250
20,750 20% 4,150
Total required allow 17,457
Balance of allow. 22,500
Adjustment (4,543)
Answers:
a) Petty cash 8,240
b) BPI SA depository 257,794
c) BPI CA Payroll 76,250
d) BPI CA Gen Disb. 214,150
e) Security Bank SA 400,625
f) Cash 556,434
g) Accounts Recbl (gross) 769,574
h) Allow for Bad Debts 17,457
i) Bad Debts Expense 19,457

5. j) Notes Receivable 18,000
k) Liab of Discounted Notes 8,000
l) Interest Receivable 517
m) Interest Income 4,586
n) Receivables from
Officers & Employees 9,700
o) Customer Credit Balances 13,800