nber 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1 nd the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. the following correctly states the effect of the adjustment dated December 31, Year 1, on the financial statements of the Loudoun Corporation? Balance Sheet Income Statement. Assets 3,375) 3,375) = Liabilities + 3,375 ΝΑ Stockholders' Equity ΝΑ (3,375) Revenue ΝΑ ΝΑ Expense ΝΑ 3,375 = Net Income ΝΑ (3,375) Statement of Cash Flows ΝΑ ΝΑ

nber 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1 nd the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. the following correctly states the effect of the adjustment dated December 31, Year 1, on the financial statements of the Loudoun Corporation? Balance Sheet Income Statement. Assets 3,375) 3,375) = Liabilities + 3,375 ΝΑ Stockholders' Equity ΝΑ (3,375) Revenue ΝΑ ΝΑ Expense ΝΑ 3,375 = Net Income ΝΑ (3,375) Statement of Cash Flows ΝΑ ΝΑ

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 44P

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On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun Company writing off the customer's account? a. b. C. d. Assets Net Realizable Cash + Value = ΝΑ ΝΑ (1,050) ΝΑ ΝΑ (1,050) ΝΑ ΝΑ Multiple Choice Option B Option A Option D Balance Sheet = Liabilities + Stockholders' Equity Option C Accounts Payable + ΝΑ ΝΑ (1,050) 1,050 Common Stock ΝΑ ΝΑ ΝΑ (1,050) Retained + Earnings ΝΑ (1,050) ΝΑ ΝΑ Revenue ΝΑ (1,050) ΝΑ ΝΑ Income Statement Expense = Net Income ΝΑ ΝΑ (1,050) ΝΑ (1,050) ΝΑ ΝΑ (1,050) Statement of Cash Flows ΝΑ ΝΑ ΝΑ ΝΑ
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun's recording the reestablishment of the receivable on April 4, Year 2? Assets = Liab. + A. ΝΑ 1,050 1,050 ΝΑ B. C. (1,050) ΝΑ D. ΝΑ NA Multiple Choice O O C Option A Option B Option C Option D Stk. Equity (1,050) 1,050 (1,050) ΝΑ Rev. - ΝΑ 1,050 ΝΑ ΝΑ Exp. 1,050 NA 1,050 NA Net Inc. (1,050) 1,050 (1,050) ΝΑ Stmt of Cash Flows ΝΑ 1,050 OA ΝΑ ΝΑ
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