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. 21Aug. 21

Solution: Under direct write method, Account is written off directly to income statement.

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 Com 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

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 Com 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

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable

Problem 1WT

See similar textbooks

Similar questions

If Metlock Company uses the allowance method to account for uncollectible accounts, journalize the entry if on May 8 Metlock determined that Randal Company's $760 balance is uncollectible. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation May 8 Bad Debt Expense Allowance for Doubtful Accounts Debit 760 Credit 760
Ceradyne Limited accepts a three-month, 7%, $43,600 note receivable in settlement of an account receivable on April 1, 2018. Interest is due at maturity. Prepare the journal entries required by Ceradyne Limited to record the issue of the note on April 1, and the settlement of the note on July 1, assuming the note is honoured and that no interest has previously been accrued. (Credit account titles are automatically indented when the 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.) te Account Titles and Explanation < Debit C Prepare the journal entries required by Ceradyne Limited to record the issue of the note on April 1, and the settlement of the note on July 1, assuming that the note is dishonoured, but eventual collection is expected. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $2,710 from Shawn McNeely and wrote off the remainder owed of $3,630 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Shawn McNeely and received $3,630 cash in full payment. If an amount box does not require an entry, leave it blank. July 29 July 29
Gate City Cycles had trouble collecting its account receivable from Sue Ann Noel. On June 19, 2018, Gate City Cycles finally wrote off Noel's $750 account receivable. On December 31, Noel sent a $750 check to Gate City Cycles. Journalize the entries required for Gate City Cycles, assuming Gate City Cycles uses the direct write-off method. On June 19, 2018, Gate City Cycles wrote off Noel's $750 account receivable. Journalize the entry.(Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jun. 19 On December 31, Noel sent a $750 check to Gate City Cycles. Start by journalizing the entry to reverse the earlier write-off. Date Accounts and Explanation Debit Credit Dec. 31
Flynn Company determines that it cannot collect $8,300 of its accounts receivable from its customer, MDC. Record the journal entry required of Flynn under (a) the direct write-off method and (b) the allowance method. View transaction list Journal entry worksheet 1 Record the write off under the direct write-off method. 2 Note: Enter debits before credits. Transaction a. General Journal Debit Credit
Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,730 from William Pruitt and wrote off the remainder owed of $5,650 as uncollectible. If an amount box does not reguire an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of William Pruitt and received $5,650 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collection
Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12, the company receives a $560 check from Chad Thomas in settlement of Thomas's $1,390 outstanding accounts receivable. Due to Thomas's failing health, he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this transaction. If an amount box does not require an entry, leave it blank. Dec. 12
Sun City Greenhouse had trouble collecting its account receivable from Sharma Suiza. On June 19, 2025, Sun City Greenhouse finally wrote off Suiza's $700 account receivable. On December 31, Suiza sent a $700 check to Sun City Greenhouse. Journalize the entries required for Sun City Greenhouse, assuming Sun City Greenhouse uses the direct write-off method. On June 19, 2025, Sun City Greenhouse wrote off Suiza's $700 account receivable. Journalize the entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Jun. 19 Accounts and Explanation Debit Credit
On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. Calculate the annual principal payment. Annual principal payment $ eTextbook and Media List of Accounts Question Part Score Prepare an instalment payment schedule for the note. Period Cash payment Interest Expense Reduction of Principal Principal Bal Jan. 1, 2021 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 eTextbook and Media List of Accounts Question Part Score Prepare journal entries to record the note and the first instalment payment. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021 (Torecord issuance of note.) Dec. 31, 2021
On October 1, 2024, Splish Brothers Company establishes a petty cash fund by issuing a cheque for $275 to Charles Wood, the custodian of the petty cash fund. On October 31, 2024, Charles Wood submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $22 cash in the fund: Freight in Supplies expense Entertainment of clients Postage $35 99 74 38 Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. The company uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries efor credit entries. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
A credit sale is made on July 10 for $800, terms 4/10, n/30. On July 12, $150 of goods are returned for credit. Give the journal entry on July 19 to record the receipt of the balance due within the discount period. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation July 19 Debit Credit
Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 the company receives a $530 check from Chad Thomas in settlement of Thomas's $1,100 outstanding accounts receivable. Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration. If an amount box does not require an entry, leave it blank.