Assignment: PRINCIPLES OF ACCOUNTING
1- On July 9, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine.
a. What is the maturity date of the note?
b. How much interest will Omar pay to SMC on this note?
c. Pass the Journal entry for Notes Receivable transaction.
d. On October 16, 2018, Omar informs us that the company is unable to pay the note or interest?
e. What adjusting entry is required on December 2018?
2- On October 31, 2017, Aziz Company sells a truck that originally cost 140,000 SA for 95,000 SA cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 and a useful life of 10 years. Record all the transactions?
3- The trial balance before adjustment of XYZ Company reports the following balances:
Dr. Cr.
Accounts receivable $100,000
Allowance for doubtful accounts $ 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000
Instructions
Pass the journal entries for estimated bad debts assuming that doubtful debts accounts are estimated to be
(1) 6% of gross accounts receivable and
(2) 1% of net sales.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.