Tony and Suzie graduate from college in May 2015 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.

Tony and Suzie graduate from college in May 2015 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.             On July 1, 2015, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July.   Jul. 1   Sell $10,000 of common stock to Suzie. 1   Sell $10,000 of common stock to Tony. 1   Purchase a one-year insurance policy for $3,720 ($310 per month) to cover injuries to participants during outdoor clinics. 2   Pay legal fees of $1,300 associated with incorporation. 4   Purchase office supplies of $1,800 on account. 7   Pay for advertising of $320 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 the day of the clinic. 8   Purchase 10 mountain bikes, paying $11,800 cash. 15   On the day of the clinic, Great Adventures receives cash of $2,500 from 50 bikers. Tony conducts the mountain biking clinic. 22   Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,000. 24   Pay for advertising of $770 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $110 in advance or $160 on the day of the clinic. 30   Great Adventures receives cash of $4,400 in advance from 40 kayakers for the upcoming kayak clinic. Required:

1.

Record each transaction in July. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $90,000; Allowance for Uncollectible Accounts = $2,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Exercise 5-11 Record the adjustment for uncollectible accounts using the aging method (LO4)

[The following information applies to the questions displayed below.]

The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $90,000; Allowance for Uncollectible Accounts = $2,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Age Group	Amount Receivable	Estimated Percent Uncollectible
Not yet due	$ 40,000	5%
0 – 60 days past due	24,000	15%
61 – 120 days past due	14,000	25%
More than 120 days past due	12,000	80%
Total	$90,000

Required:
1.	Estimate the amount of uncollectible receivables.

2.	Record the adjustment for uncollectible accounts on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Explanation: 2. Bad debts expense: $18,700 + $2,000 = $20,700
	3. Calculate the net realizable value of accounts receivable.

Mercy Hospital has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $51,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Exercise 5-10 Record the adjustment for uncollectible accounts using the aging method (LO4)

[The following information applies to the questions displayed below.]

Mercy Hospital has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $51,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below.

Age Group	Amount Receivable	Estimated Percent Uncollectible
Not yet due	$ 31,000	10%
0 – 30 days past due	9,100	15%
31 – 90 days past due	6,100	45%
More than 90 days past due	4,800	85%
Total	$ 51,000

Required:
1.	Estimate the amount of uncollectible receivables.

2.	Record the adjustment for uncollectible accounts on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Explanation: 2. Bad debt expense: $11,290 – $1,400 = $9,890

Southwest Pediatrics has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $121,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2015, Southwest estimates uncollectible accounts to be 20% of accounts receivable.

Exercise 5-9 Record the adjustment for uncollectible accounts and calculate net realizable value (LO3)

[The following information applies to the questions displayed below.]

Southwest Pediatrics has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $121,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2015, Southwest estimates uncollectible accounts to be 20% of accounts receivable. Required: 1. Record the adjustment for uncollectible accounts on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Explanation: 1. Bad debt expense: ($121,000 × 20%) + $2,100 = $26,300 2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet. Explanation: 2. Allowance for uncollectible accounts: $24,200 = $26,300 credit adjustment – $2,100 debit balance before adjustment 3. Calculate the net realizable value of accounts receivable.

Physicians' Hospital has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $48,000; Allowance for Uncollectible Accounts = $1,000 (credit). On December 31, 2015, Physicians' estimates uncollectible accounts to be 20% of accounts receivable.

Exercise 5-8 Record the adjustment for uncollectible accounts and calculate net realizable value (LO3)

[The following information applies to the questions displayed below.]

Physicians' Hospital has the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $48,000; Allowance for Uncollectible Accounts = $1,000 (credit). On December 31, 2015, Physicians' estimates uncollectible accounts to be 20% of accounts receivable. Required: 1. Record the adjustment for uncollectible accounts on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Explanation: 1. Bad debt expense: ($48,000 × 20%) – $1,000 = $8,600. 2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet. Explanation: 2. Allowance for uncollectible accounts: $9,600 = $8,600 credit adjustment + $1,000 credit balance before adjustment

The December 31, 2015, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.

Exercise 3-19 Record closing entries and a post-closing trial balance (LO6, 7)

[The following information applies to the questions displayed below.]

The December 31, 2015, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.

Accounts	Debit			Credit
Cash	$	11,200
Accounts Receivable		142,000
Prepaid Rent		5,200
Supplies		26,000
Equipment		320,000
Accumulated Depreciation				$	127,000
Accounts Payable					11,200
Salaries Payable					10,200
Interest Payable					4,200
Notes Payable (due in two years)					32,000
Common Stock					220,000
Retained Earnings					52,000
Service Revenue					420,000
Salaries Expense		320,000
Rent Expense		16,000
Depreciation Expense		32,000
Interest Expense		4,200
Totals	$	876,600		$	876,600

Required:

1.	Record the necessary closing entries at December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare a post-closing trial balance.