Splish Inc. incurred a net operating loss of $515,000 in 2025. The tax rate for all years is 20%. Prepare the journal entries to record the benefits of the loss carryforward. Splish expects to return to profitability in 2026. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts) Account Titles and Explanation Debit Credit
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- It is February 16, 2020, and you are auditing Davenport Corporation's financial statements for 2019 (which will be issued in March 2020). You read in the newspaper that Travis Corporation, a major customer of Davenport, is in financial difficulty. Included in Davenports accounts receivable is 50,000 (a material amount) owed to it by Travis. You approach Jim Davenport, president, with this information and suggest that a reduction of accounts receivable and recognition of a loss for 2019 might be appropriate. Jim replies, Why should we make an adjustment? Ted Travis, the president of Travis Corporation, is a friend of mine; he will find a way to pay us, one way or another. Furthermore, this occurred in 2020, so lets wait and see what happens; we can always make an adjustment later this year. Our 2019 income and year-end working capital are not that high; our creditors and shareholders wouldnt stand for lower amounts than they already are. Required: From financial reporting and ethical perspectives, prepare a response to Jim Davenport regarding this issue.At the end of 2022, Sheridan Co. has accounts receivable of $807,800 and an allowance for doubtful accounts of $58,300. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,000. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditAt the end of 2022, Cullumber Co. has accounts receivable of $717,900 and an allowance for doubtful accounts of $63,900. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,900. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation e Textbook and Media Debit Credit
- At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2023, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record the March 4, 2023, transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To reverse write-off) (To record collection from Gray) Debit Credit 10Sanders Incorporated is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2024, its balance for Accounts Receivable is $44,000. The company estimates that of this amount, $5,800 is not likely to be collected in 2025. In 2025, the actual amount of bad debts is $3,900. Record, if necessary, an adjusting entry for estimated uncollectible accounts at the end of 2024 and the actual bad debts in 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)At December 31, 2021, Blossom Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2022, Blossom wrote off accounts totaling $14,500. One of those accounts of $3,400 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $24,700.Prepare journal entries to record the 2022 transactions of Blossom Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record amount written off enter a debit amount enter a credit amount enter an account title to record amount written off enter a debit amount enter a credit amount (To record amount written off) enter an account title to reverse write-off enter a debit amount enter a credit amount…
- Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers.On April 1, 2018, the company factored, without recourse, some of its accounts receivable. Magrath transferredthe receivables to a financial institution, and will have no further association with the receivables.Magrath uses the allowance method to account for uncollectible accounts. During 2018, some accounts werewritten off as uncollectible and other accounts previously written off as uncollectible were collected.Required:1. How should Magrath account for and report the accounts receivable factored on April 1, 2018? Why is thisaccounting treatment appropriate?2. How should Magrath account for the collection of the accounts previously written off as uncollectible?3. What are the two basic approaches to estimating uncollectible accounts under the allowance method? What isthe rationale for each approach?At the end of 2021, Windsor Co. has accounts receivable of $691,000 and an allowance for doubtful accounts of $27,210. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,006. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (b) Cash realizable value What is the cash realizable value of the accounts receivable before the write-off and after the write-off? $ Before Write-Off Debit $ Credit After Write-OffAt the end of 2021, Shamrock Co. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,480. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 4480 Accounts Receivable 4480 (b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value $ $
- At the end of 2020, Crane Co. has accounts receivable of $740,200 and an allowance for doubtful accounts of $69,900. On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,.400. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value List of AccountsAt the end of 2022, Cullumber Co. has accounts receivable of $717,900 and an allowance for doubtful accounts of $63,900. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,900. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Account Titles and Explanation Allowance for Doubtful Accounts Accounts Receivable eTextbook and Media eTextbook List of Accounts Cash realizable value Debit Before Write-Off 6900 What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Credit After Write-Off 6900 Assistance Used Attempts: 1 of 1 usedOn December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected Credit Losses had an unadjusted debit balance of $1,900, Runner Corp. estimated that $15,800 of its accounts receivable account would become uncollectible, and it recorded the credit losses adjusting entry. On May 11, 2024, Runner determined that Fei Ya Cheng's account was uncollectible and wrote off $1,800. On November 12, 2024, Cheng paid the amount previously written off. (a) Your answer is partially correct. Prepare the required journal entries to record each of the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement.) 2023 (b) Date Account Titles and Explanation Dec. 31 No Entry 2024 No Entry Date Account Titles and…