Direct Write-off Method Example: Accounts Receivable balance is $10,000 as of December 31. Customer Ledger: Sue 3,000 Fred 700 Mary 2,300 Bob 4.000 Total 10,000 Fred goes bankrupt in January and will not pay. Use the Direct Write-Off Method. GENERAL JOURNAL 1 2 Date Description Date Description 1 2 Net Realizable Value of Receivables on BS: 9,000 Date Allowance Method The balance of Accounts Receivable is presented on the Balance Sheet with the Allowance account. Accounts Receivable less the Allowance is calculated and presented on the face of the balance sheet. It is what we really expect to collect and is called the Net Realizable Value. Example: In the year 2019 Accounts Receivable balance is 10,000. We estimate bad debt expense of 1,000. Use the Allowance Method. GENERAL JOURNAL In the year 2020 we find out that Fred isn't going to pay. GENERAL JOURNAL Description Post ref 1 2 Net Realizable Value of Receivables on BS is still $9,000 Debit Post ref Post ref Page Debit Credit Debit Page Credit Page 1 2 Credit 1 27 2 1 2

Direct Write-off Method Example: Accounts Receivable balance is $10,000 as of December 31. Customer Ledger: Sue 3,000 Fred 700 Mary 2,300 Bob 4.000 Total 10,000 Fred goes bankrupt in January and will not pay. Use the Direct Write-Off Method. GENERAL JOURNAL 1 2 Date Description Date Description 1 2 Net Realizable Value of Receivables on BS: 9,000 Date Allowance Method The balance of Accounts Receivable is presented on the Balance Sheet with the Allowance account. Accounts Receivable less the Allowance is calculated and presented on the face of the balance sheet. It is what we really expect to collect and is called the Net Realizable Value. Example: In the year 2019 Accounts Receivable balance is 10,000. We estimate bad debt expense of 1,000. Use the Allowance Method. GENERAL JOURNAL In the year 2020 we find out that Fred isn't going to pay. GENERAL JOURNAL Description Post ref 1 2 Net Realizable Value of Receivables on BS is still $9,000 Debit Post ref Post ref Page Debit Credit Debit Page Credit Page 1 2 Credit 1 27 2 1 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Solstice Company determines on October 1 that it cannot collect $58,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1. View transaction list Journal entry worksheet ** ▷
Current Attempt in Progress At December 1, 2022, Tamarisk, Inc. Accounts Receivable balance was $17470. During December, Tamarisk had credit sales of $46800 and collected accounts receivable of $37440. At December 31, 2022, the Accounts Receivable balance is O $64270 debit O $17470 debit O $26830 credit O $26830 debit Save for Later Attempts: 0 of 1 used Submit Answer
TB MC Qu. 07-134 (Algo) On July 9, Mifflin Company receives... On July 9, Mifflin Company receives a $10,200, 90-day, 6% note from customer Payton Summers to replace an account receivable. What entry should be made by Mifflin on July 9 to record receipt of the note? Multiple Choice Debit Notes Receivable $10,402; credit Interest Revenue $202; credit Accounts Receivable-P. Summers $10,200. Debit Accounts Receivable-P. Summers $10,200; credit Sales $10,200. Debit Notes Receivable $10,200; credit Sales $10,200. Debit Notes Receivable $10,200; credit Accounts Receivable-P. Summers $10,200. ( Prev 10 of 20 Next > 1069 MAR 15 éty MacBook Air F2 F3 F4 ES F6 F7 F8 %23 24 3 4 6 7 8.
The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1: Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due Total Accounts Receivable 11.130 $ 175,982 89,200 53,600 31,800 Historical % Uncollectible 17,424 margin of error +/-3 www. 29 12% 18% The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of $17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17 35%
A ezto.mheducation.com sijon 17A - Connect Data_Sales.xlsx: fa21cob204 Computer Information Systems Dashb on 1-7-6A - Connect Saved Help The accounts receivable balance for Renue Spa at December 31, Year 1, was $86,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,500. During Year 2, $1.900 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $130 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $211,000, and cash collections from receivables were $212,936. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Record the transactions in general journal form and post to T-accounts. b. Based on the preceding information, compute (after year-end adjustment): (1) Balance of allowance for doubtful accounts at December 31, Year 2. (2) Balance of accounts receivable at December 31,…
Required information Skip to question [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 820,000 Not yet due 1.25% 328,000 1 to 30 days past due 2.00 65,600 31 to 60 days past due 6.50 32,800 61 to 90 days past due 32.75 13,120 Over 90 days past due 68.00 3. On June 30 of the next year, Jarden concludes that a customer’s $5,350 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?
Required information Skip to question [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 820,000 Not yet due 1.25% 328,000 1 to 30 days past due 2.00 65,600 31 to 60 days past due 6.50 32,800 61 to 90 days past due 32.75 13,120 Over 90 days past due 68.00 Required:1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Entries to Write Off Accounts Receivable Capstone Solutions Company, a computer consulting firm, has decided to write off the $45,800 balance of an account owed by a customer, Philadelphia Inc. a. Journalize the entry to record the write-off, assuming that the direct write-off method is used. If an amount box does not require an entry, leave it blank. Bad Debt Expense Accounts Receivable-Philadelphia Inc. ✔ Feedback 45,800 Check My Work Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless. Feedback 45,800 b. Journalize the entry to record the write-off, assuming that the allowance method is used. If an amount box does not require an entry, leave it blank. ✓ Check My Work
Selected data for the Erdin Corporation for the year ended Decmeber 31, 20x5 is provided below: Credit sales Accounts receivable written off Recoveries of previously written of accounts receivable Allowance for doubtful accounts balance, January 1, 20x5 Accounts receivable, December 31, 20x5 Erdin estimates that 0.8% of sales will be uncollectible. Required - $4,500,000 36,500 1,800 33,000 cr. 625,000 Write the journal entries to record the accounts receivable written off, the recoveries and the bad debt expense. Calculate the ending balance in the allowance for doubtful account at December 31, 20x5. Note that the accounts receivable and recoveries have been accounted for in the ending Accounts Receivable balance.
On January 1, Year 1, the Accounts Receivable balance was $29,000 and the balance in the Allowance for Doubtful Accounts was $3,400. On January 15, Year 1, an $980 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off? Multiple Choice O O $28,020 $26,580 $25,600 $24,620
TB MC Qu. 07-137 (Algo) On November 1, Orpheum Company accepted... On November 1, Orpheum Company accepted a $12,000, 90-day, 10% note from a customer to replace an account receivable. What entry should be made by Orpheum on the November 1 to record the acceptance of the note? Multiple Choice ces Debit Notes Receivable $12,000; credit Cash $12,000. Debit Notes Receivable $12,000; credit Accounts Receivable $12,000. Debit Notes Receivable $12,000; credit Sales $12,000. Debit Notes Receivable $12,300; credit Accounts Receivable $12,000; credit Interest Dovonue t200 < Prev 13 of 20 Next 1,069 15 tv MacBook Air 80 F3 DD F2 F4 F5 F6 F7 F8 F9 %23 %24 & 3 4 7 8. W R T Y < co
ABC estimates potential uncollectable accounts receivables using Aging Accounts Receivable approach. The following is the analysis: Customer K. Brant D. Eaton S Klein C. Sheen Total Total % uncollectible $500 300 150 200 1.150 Not yet due 100 200 300 1% Number of Days Past Due 1-30 31-60 61-90 Over 90 $300 $200 300 5% 50 250 10% What is the total amount of estimated uncollectible? 200 200 25% 200 200 50%