Tony and Suzie are ready to expand Great Adventures even further in 2025. Tony believes that many groups in the community (for example, Boys and Girls Clubs, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 6% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations.January 24Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,500 cash.February 25Kendall’s Boys and Girls Club participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $4,000, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,500. Great Adventures provides these services on account.February 28Great Adventures receives payment from the Boys and Girls Club for the full amount owed, less the 6% quick-payment discount.March 19Reynold’s Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,500, and Reynold’s agrees to pay within 30 days.March 27Great Adventures receives payment from Reynold's for the full amount owed, less the 6% quick-payment discount.April 7Several men from the Elks Lodge decide to participate in a TEAM adventure. Great Adventures receives $8,000 immediately and the event is scheduled for the following week.April 14The TEAM adventure is held for members of the Elks Lodge.April 30Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,500, and Myers agrees to pay within 30 days.May 31Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 9% note receivable to replace the existing account receivable.June 15Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $26,500 to these groups, with payment due in July.Consider the following information as of June 30, 2025.a. Suzie estimates uncollectible accounts to be 5% of accounts receivable from the MBA groups on June 15. Record the adjusting entry for uncollectible accounts.b. Accrue one month of interest on the note receivable from Myers Manufacturing.c. Prepare a partial balance sheet showing the net accounts receivable section. Journal entry worksheet<1Record the accrued interest revenue.Note: Enter debits before credits.DateJune 30, 2025Record entryGeneral JournalClear entryDebitCreditView general journal> Journal entry worksheet1Record adjusting entry for uncollectible accounts.Note: Enter debits before credits.DateJune 30, 2025Record entryGeneral JournalClear entryDebitCreditView general journal>

Accounts receivable is the total amount that is to be received from a customer in exchange for goods…

Answered: Consider the following information as…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tony and Suzie are ready to expand Great Adventures even further in 2025. Tony believes that many groups in the community (for example, Boys and Girls Clubs, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More).

Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 6% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations.

January 24	Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,500 cash.
February 25	Kendall’s Boys and Girls Club participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $4,000, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,500. Great Adventures provides these services on account.
February 28	Great Adventures receives payment from the Boys and Girls Club for the full amount owed, less the 6% quick-payment discount.
March 19	Reynold’s Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,500, and Reynold’s agrees to pay within 30 days.
March 27	Great Adventures receives payment from Reynold's for the full amount owed, less the 6% quick-payment discount.
April 7	Several men from the Elks Lodge decide to participate in a TEAM adventure. Great Adventures receives $8,000 immediately and the event is scheduled for the following week.
April 14	The TEAM adventure is held for members of the Elks Lodge.
April 30	Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,500, and Myers agrees to pay within 30 days.
May 31	Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 9% note receivable to replace the existing account receivable.
June 15	Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $26,500 to these groups, with payment due in July.

Consider the following information as of June 30, 2025.
a. Suzie estimates uncollectible accounts to be 5% of accounts receivable from the MBA groups on June 15. Record the adjusting entry for uncollectible accounts.
b. Accrue one month of interest on the note receivable from Myers Manufacturing.
c. Prepare a partial balance sheet showing the net accounts receivable section.

Journal entry worksheet
<
1
Record the accrued interest revenue.
Note: Enter debits before credits.
Date
June 30, 2025
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>

Journal entry worksheet
1
Record adjusting entry for uncollectible accounts.
Note: Enter debits before credits.
Date
June 30, 2025
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>

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