Kader Company Had the Following Balances on January 1, 2020 $\begin{array}{|l|r|}\hline \text { Allowance for doubtful accounts } & \$ 2,600 \\\hline \text { Notes receivable } & 56,000\\\hline\end{array}$

question 99

Essay

Kader Company had the following balances on January 1, 2020:
$\begin{array}{|l|r|}\hline \text { Allowance for doubtful accounts } & \$ 2,600 \\\hline \text { Notes receivable } & 56,000\\\hline\end{array}$ Prepare general journal entries for the following transactions of Kader Company:
$\begin{array}{|l|l|l|}\hline \text { Mar. } & 21 & \begin{array}{l}\text { Discounted a } \$ 10,000,9 \%, 120 \text {-day note dated March } 1 \text {, received from } \\\text { Creed Corp, at the bank at } 12 \% .\end{array} \\\hline & & \\\hline \text { Apr. } & 25 & \begin{array}{l}\text { Sold } \$ 4,500 \text { of merchandise to Finn Corp., receiving a } 10 \%, 60 \text { - day note } \\\text { receivable. }\end{array} \\\hline \text { May } & 10 & \text { Wrote off } \$ 1,800 \text { account owed by Friller as worthless. } \\\hline \text { June } & 24 & \text { Note signed by Finn Corp. on April } 25 \text { was dishonoured. } \\\hline & 29& \begin{array}{l}\text { Received a memo from the bank that the note discounted on March } 21 \\\text { Was collected }\end{array} \\\hline \text { Dec. } & 31& \text { Uncollectible accounts receivable were estimated to be } \$ 3,200 \text {. } \\\hline\end{array}$

---

Definitions:

Goodwill Impairment

The decrease in value of a company's goodwill, indicating that the value of acquired assets has fallen below their book value.

Fair Value

The amount to be banked from asset liquidation or spent on liability transition in an orderly market dealing at the time for calculating value.

Functional Currency

It's the currency of the primary economic environment in which an entity operates and generates cash flows.

Exchange Rates

The price at which one currency can be exchanged for another, influencing international trade and investments.