Shown below are selected transactions of Hugo company during the month of December 2021. Dec. 1 Accepted a one-year, 8% note receivable from a customer, XZ Company. The note is in settlement of an existing USD1,500 account receivable. The note, plus interest, is due in full on November 30, 2022. Dec. 8 An account receivable from YG Company in the amount of USD700 is determined to be uncollectible and is written off against the Allowance for Doubtful Accounts. Dec. 15 Unexpectedly received USD200 from VB Company in full payment of her account. The USD200 account receivable from VB Company had previously been written off as uncollectible An aging of accounts receivable indicates probable uncollectible accounts totaling USD9,000. The Allowance for Doubtful Accounts had a debit balance of USD5,210 as of November 30, 2021. Hugo Company prepares adjusting entries every month-end. How much bad debt expense should Hugo Company recognize on December 31, 2021? How much interest income should Hugo Company recognize for the month of December 2021?
Shown below are selected transactions of Hugo company during the month of December 2021.
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Dec. 1 |
Accepted a one-year, 8% note receivable from a customer, XZ Company. The note is in settlement of an existing USD1,500 account receivable. The note, plus interest, is due in full on November 30, 2022. |
|
Dec. 8 |
An account receivable from YG Company in the amount of USD700 is determined to be uncollectible and is written off against the Allowance for Doubtful Accounts. |
|
Dec. 15 |
Unexpectedly received USD200 from VB Company in full payment of her account. The USD200 account receivable from VB Company had previously been written off as uncollectible |
An aging of
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