jordan co uses the allowance method to account for uncollectible accounts Jordan Co. uses the allowance method of accounting for uncollectible accounts. Jordan Co. accepted a $48000, 10%, 90-day note dated May 16, from Beckam Co. in exchange for its past-due account receivable. Make the necessary general journal entries for Jordan Co. on May 16 and the August 14 maturity date, assuming that the Note is held until maturity and collected in full at that time. Show any work in
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
jordan co uses the allowance method to account for uncollectible accounts
Jordan Co. uses the allowance method of accounting for uncollectible accounts. Jordan Co. accepted a $48000, 10%, 90-day note dated May 16, from Beckam Co. in exchange for its past-due account receivable.
Make the necessary general
Show any work in
Step by step
Solved in 3 steps
