Need help with attached problems. Thank you. Certificate of DepositOn May 31, 2017, Elmer Corp. purchased a 120-day, 9% certificate of deposit for $50,000. The CD was redeemed on September 28, 2017.Identify and analyze the transactions or adjustments on Elmer's books to account for:b. The accrual of interest adjustment for interest earned through June 30, the end of the company's fiscal year. Assume 360 days in a year.ActivityOperating vAccountsInterest Receivable Increase, Interest Revenue Increase vStatement(s)Balance Sheet and Income StatementFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sto enter the answer with a minus sign.Do not round intermediate calculations. If required, round your final answers to the nearest dollar.Balance SheetIncome StatemeStockholders'AssetsLiabilities+EquityRevenuesInterest ReceivableNo Entry vInterest RevenueNo Ent1c. The redemption of the CD. Assume 360 days in a year.ActivityInvesting and OperatingAccountsCash Increase, Short-Term Investments - CD Decrease, Interest Receivable Decrease, Interest Revenue IncreaseStatement(s) Balance Sheet and Income Statement vFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sureto enter the answer with a minus sign.Do not round intermediate calculations. If required, round your final answers to the nearest dollar.Balance SheetIncomStockholders'AssetsLiabilities+EquityRevenues=Cash vNo Entry vInterest Revenue vInterest Receivable vNo Entry vNo Entry vShort-Term Investments - CD V-50,000 VNo Entry vNo Entry v Allowance Method for Accounting for Bad DebtsAt the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki's sales in2017 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during theyear.2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are6% of the year-end accounts receivable.a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 3% of credit sales.2ActivityOperating vAccountsAllowance for Doubtful Accounts Increase, Bad Debts Expense IncreaseStatement(s)Balance Sheet and Income Statement vFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sureto enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contraaccount is decreased, it will have the effect of increasing the corresponding financial statement item.Balance SheetIncStockholders'AssetsLiabilities+EquityRevenuesAllowance for Doubtful AccountsNo Entry vNo Entry vBad Debts3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)?2Using the percentage of sales approach, the net realizable value of the receivables is?$Using the percentage of year-end receivables approach, the net realizable value of the receivables is?$

Question

Need help with attached problems. Thank you. Certificate of DepositOn May 31, 2017, Elmer Corp. purchased a 120-day, 9% certificate of deposit for $50,000. The CD was redeemed on September 28, 2017.Identify and analyze the transactions or adjustments on Elmer's books to account for:b. The accrual of interest adjustment for interest earned through June 30, the end of the company's fiscal year. Assume 360 days in a year.ActivityOperating vAccountsInterest Receivable Increase, Interest Revenue Increase vStatement(s)Balance Sheet and Income StatementFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select &#34;No Entry&#34; and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sto enter the answer with a minus sign.Do not round intermediate calculations. If required, round your final answers to the nearest dollar.Balance SheetIncome StatemeStockholders'AssetsLiabilities+EquityRevenuesInterest ReceivableNo Entry vInterest RevenueNo Ent1c. The redemption of the CD. Assume 360 days in a year.ActivityInvesting and OperatingAccountsCash Increase, Short-Term Investments - CD Decrease, Interest Receivable Decrease, Interest Revenue IncreaseStatement(s) Balance Sheet and Income Statement vFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select &#34;No Entry&#34; and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sureto enter the answer with a minus sign.Do not round intermediate calculations. If required, round your final answers to the nearest dollar.Balance SheetIncomStockholders'AssetsLiabilities+EquityRevenues=Cash vNo Entry vInterest Revenue vInterest Receivable vNo Entry vNo Entry vShort-Term Investments - CD V-50,000 VNo Entry vNo Entry v Allowance Method for Accounting for Bad DebtsAt the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki's sales in2017 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during theyear.2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are6% of the year-end accounts receivable.a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 3% of credit sales.2ActivityOperating vAccountsAllowance for Doubtful Accounts Increase, Bad Debts Expense IncreaseStatement(s)Balance Sheet and Income Statement vFeedbackHow does this entry affect the accounting equation?If a financial statement item is not affected, select &#34;No Entry&#34; and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sureto enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contraaccount is decreased, it will have the effect of increasing the corresponding financial statement item.Balance SheetIncStockholders'AssetsLiabilities+EquityRevenuesAllowance for Doubtful AccountsNo Entry vNo Entry vBad Debts3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)?2Using the percentage of sales approach, the net realizable value of the receivables is?$Using the percentage of year-end receivables approach, the net realizable value of the receivables is?$

Accepted Answer

Bad debts are the amount of credit sales, which are not received from the receivables. These bad…