Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $7,200. On September 9, the customer unexpectedly pays the $7,200 balance. Determine the financial statement effects of collecting cash from an account previously written off as uncollectible. (Amounts to be deducted should be entered with minus sign.)

Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $7,200. On September 9, the customer unexpectedly pays the $7,200 balance. Determine the financial statement effects of collecting cash from an account previously written off as uncollectible. (Amounts to be deducted should be entered with minus sign.)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

See similar textbooks

Similar questions

A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $9,400. On September 9, the customer unexpectedly pays the $9,400 balance. Record the cash collection on September 9. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $11,000. On September 9, th customer unexpectedly pays the $11,000 balance. Record the cash collection on September 9. (If no entry is required for a particular transaction/event, select "No Journal E Required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the cash collection on September 9. Note: Enter debits before credits. Date General Journal Debit Credit September 09 Record entry Clear entry View general journal
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $7,000. On September 9, the customer unexpectedly pays the $7,000 balance. Record the cash collection on September 9.
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,100 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. Record write off of Leer Co. account. Record the reinstatement of an account previously written off. Record the cash received on account.
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $8,200 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. View transaction list 1 Record write-off of Leer Company account. 2 Record the reinstatement of an account previously written off. 3 Record the cash received on account. Note : = = journal entry has been entered Record entry Clear entry X Credit View general journal
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the recovery of the bad debt is: Multiple Choice Account Title Credit Accounts Receivable-A. Hopkins Debit 2,000 Allowance for Doubtful Accounts 2,000 Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Accounts Receivable-A. Hopkins 2,000 Bad debts expense 2,000
Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $4,900 of accounts receivable due from Jacob Marley. If an amount box does not require an entry, leave it blank.
Theta Company determines that a $6,300 account receivable from CorpCo is uncollectible and writes off the account using the direct write-off method on June 16. On August 21, CorpCo pays the $6,300 to Theta Company. Journalize the entry for the reinstatement of the account receivable and receipt of cash on August 21. You may omit posting references. If an amount box does not require an entry, leave it blank. Aug. 21 Aug. 21
Bennett Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations. June 20 The account of Ken Watts for $1,000 was deemed to be uncollectible and is written off as a bad debt. Received a check for $1,000 from Ken Watts, whose account had previously been written off as uncollectible. Oct. 14 Dec. 31 Use the following information for year-end adjusting entries: The balance of Accounts Receivable and Allowance for Doubtful Accounts at year end are $131,000 and $2,900, respectively. It is estimated that bad debts will be 4% of accounts receivable.
Given the following information for Teal Mountain Restaurant Supply Company, prepare the adjusting entries needed for its April bank reconciliation: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Cash balance per books, 4/30 Deposits in transit Notes receivable collected by bank (including interest of $280) Outstanding checks NSF check from Sandhill Company Date Account Titles and Explanation April 30 April 30 $20,000 (To record NSF check) 2,250 9,400 6,100 2,200 (To record collection of note receivable and interest by the bank) Debit Credit
Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $4,255 of accounts receivable due from Jacob Marley. If an amount box does not require an entry, leave it blank. Sept. 15