g You are buying a house for $200,000 and will be putting 20%. You are deciding between a 15 and 30 year mortgage. The bank is offering you 5.5% for a 15 year, and 6% for the 30 year. Calculate both monthly payment amounts.

Explanation:

Principle amount = $ 2,00,000

down payment = 20%

duration 15 years

interest = 5.5 %

monthly payment amount = $ 1590.67

Principle amount = $ 2,00,000

down payment = 20%

duration 30 years

interest = 6 %

monthly payment amount = $ 1242.61

a) Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a credit balance of $13,400.

Dr Bad debt expense ($28,100 - $13,400) 14,700

    Cr Allowance for doubtful accounts 14,700

b) The allowance account before adjustment has a debit balance of $5,300.

Dr Bad debt expense ($28,100 - $5,300) 22,800

    Cr Allowance for doubtful accounts 22,800

c) Bad debt expense is estimated at 1/2 of 1% of sales.

Dr Bad debt expense ($56,200 - $13,400) 42,800

    Cr Allowance for doubtful accounts 42,800

d) An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000.

Dr Bad debt expense ($44,000 - $13,400) 30,600

    Cr Allowance for doubtful accounts 30,600

Explanation:

accounts receivable $992,000

total sales for the year $11,240,000

allowance for doubtful accounts $13,400

total estimated bad debt = 0.25% x $11,240,000 = $28,100

total estimated bad debt = 0.5% x $11,240,000 = $56,200