Dr. ruth is going to borrow $8,400 to write a book. the loan is for one year and the money can either be borrowed at the prime rate or the libor rate. assume the prime rate is 8 percent and libor 1.3 percent less. also assume there will be a $48 transaction fee with libor (this amount must be added to the interest cost with libor).

a.
what is the effective interest rate on the libor loan?

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?