
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%

Transcribed Image Text:The image appears to be a screenshot from an educational accounting software or e-learning platform. It shows an interactive exercise related to journal entries for specific financial transactions. Here is the transcription of the image content:
---
**Exercise Screen:**
1. (EX 08-01 to EX 08-03 ALGO)
2. EX 08-01
3. EX 08-02 ALGO
4. EX 08-03 ALGO
5. EX 08-04 ALGO
6. EX 08-05 ALGO
7. EX 08-06 ALGO
8. EX 08-07
9. EX 08-07A
10. EX 08-08
11. PR 08-02A BLANKSHEET
**Instructions:**
- June 2: Received $11,500 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
- Oct. 23: Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $34,300 cash in full payment.
If an amount box does not require an entry, leave it blank.
**Journal Entries Table:**
1. **Jan. 19 - Sale**
- Accounts Receivable - Dr. Kyle Norby
- Sales
2. **Jan. 19 - Cost**
- Cost of Goods Sold
- Inventory
3. **June 2**
- Cash
- Bad Debt Expense
- Accounts Receivable - Dr. Kyle Norby
4. **Oct. 23 - Reinstate**
- Accounts Receivable - Dr. Kyle Norby
- Bad Debt Expense
5. **Oct. 23 - Collection**
- Cash
- Allowance for Doubtful Accounts
**Navigation:**
- Options to "Check My Work"
- Buttons for "Previous" and "Next"
- Progress shows 3/8 items completed
---
The exercise requires entering appropriate values for each journal entry related to the provided financial scenarios. It is likely an accounting exercise focusing on accounts receivable and bad debt management.

Transcribed Image Text:**Entries for Uncollectible Accounts using the Direct Write-Off Method**
Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables:
1. **Jan. 19**
- Sold merchandise on account to Dr. Kyle Norby, $45,800.
- The cost of goods sold was $24,700.
2. **June 2**
- Received $11,500 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible.
3. **Oct. 23**
- Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $34,300 cash in full payment.
**Instructions:**
If an amount box does not require an entry, leave it blank.
| Date | Account Title | Debit | Credit |
|------------|--------------------------------------------|-----------|-----------|
| Jan. 19-sale | Accounts Receivable-Dr. Kyle Norby | | |
| | Sales | | |
| Jan. 19-cost | Cost of Goods Sold | | |
| | Inventory | | |
| June 2 | Cash | | |
| | Bad Debt Expense | | |
| | Accounts Receivable-Dr. Kyle Norby | | |
| Oct. 23-reinstate | Accounts Receivable-Dr. Kyle Norby | | |
| | Bad Debt Expense | | |
**Action Buttons:**
- Check My Work
- Previous
- Next
Progress: 3/8 items
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Allowance Method versus Direct Write-Off Method On March 10, May, Inc., declared a $2,500 account receivable from Anders Company as uncollectible and wrote off the account. On November 18, May received a $800 payment on the account from Anders. Assume that May uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Anders’s account. Assume that May uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Anders’s account. Assume that the payment from Anders arrives on the following February 5, rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Anders’s account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Anders’s account under the direct write-off method. a. General…arrow_forward3arrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $2,830 from William Pruitt and wrote off the remainder owed of $2,750 as uncollectible. If an amount box does not require an entry, leave it blank. accounts payable-william pruitt accounts receivable-william pruitt bad debit expense cash sales allowance for doubtful accounts Oct. 2 Dec. 20. Reinstated the account of William Pruitt and received $2,750 cash in full payment. Reinstate Collectionarrow_forward
- Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,060 from Ian Kearns and wrote off the remainder owed of $2,310 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Ian Kearns and received $2,310 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collectionarrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $2,570 from Ian Kearns and wrote off the remainder owed of $3,910 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Ian Kearns and received $3,910 cash in full payment. July 29 18 July 29arrow_forwardplz help thank youarrow_forward
- TB MC Qu. 07-94 (Algo) Gideon Company uses... Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,300 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is: Multiple Choice Account Title Debit Credit Accounts Receivable-A. Hopkins Allowance for Doubtful Accounts 2,300 2,300 Account Title Allowance for Doubtful Accounts Debit Credit 2,300 Bad debts expense 2,300 Account Title Debit Credit Accounts Receivable-A. Hopkins 2,300 ( Prev 14 of 20 Next > MAR 15 tv MacBook Air DD F2 F4 F5 F6 F7 F8 F9 # %24 & 2 3 8. W R T Y D F G H J Karrow_forwardQuestion: A customer who owes Berry Sales Company $2,000 is declared bankrupt by a federal court. What journal entry would be made to write off this account: A. Allowance for Uncollectable Accounts 2,000 Accounts Receivable/Customer Account 2,000 B. Accounts Receivable/Customer Account 2,000 Allowance for Uncollectable Accounts 2,000 C. Accounts Receivable 2,000 Notes Receivable 2,000 D. Cash 2,000 Accounts Receivable 2,000arrow_forwardAllowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct. 2. Received $1,970 from Ian Kearns and wrote off the remainder owed of $1,360 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20. Reinstated the account of Ian Kearns and received $1,360 cash in full payment. Reinstate Collectionarrow_forward
- 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 Workarrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $2,590 from Paula Spitler and wrote off the remainder owed of $3,000 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 July 29: Reinstated the account of Paula Spitler and received $3,000 cash in full payment. July 29 3E July 29arrow_forwardDirect Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Mar. 17: Received $3,330 from Matthew Chapman and wrote off the remainder owed of $2,530 as uncollectible. If an amount box does not require an entry, leave it blank. 38 Mar. 17 July 29: Reinstated the account of Matthew Chapman and received $2,530 cash in full payment. July 29 July 29arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education