of merchandise to Alright Trucking Company on account Alright fell on hard times and on July 15 paid only $6,00 off its accounts receivable from Alright on September 5. Six months later. March 5, 202 payment the account receivable. After repeated attempts to collect, High Performance finally High Performance received Alright's check for $12,000 with a note apologizing for t Read the requirements Requirement 1. Journalize the transactions for High Performance Cell Phones using the direct write-off method Ignore Cost of Goods Sold (Record debits first, then, credes S the explanation on the last line of the journal entry table) June 1: High Performance Cell Phones sold $18,000 of merchandise to Alright Trucking Company on account Ignore Cost of Goods Sold Date Accounts and Explanation Credit Jun 1 Debit

of merchandise to Alright Trucking Company on account Alright fell on hard times and on July 15 paid only $6,00 off its accounts receivable from Alright on September 5. Six months later. March 5, 202 payment the account receivable. After repeated attempts to collect, High Performance finally High Performance received Alright's check for $12,000 with a note apologizing for t Read the requirements Requirement 1. Journalize the transactions for High Performance Cell Phones using the direct write-off method Ignore Cost of Goods Sold (Record debits first, then, credes S the explanation on the last line of the journal entry table) June 1: High Performance Cell Phones sold $18,000 of merchandise to Alright Trucking Company on account Ignore Cost of Goods Sold Date Accounts and Explanation Credit Jun 1 Debit

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

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A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
On June 1,2024, Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Company on account. Avery fell on hard times and on July 15 paid only $4,000 of the account receivable. After repeated attempts to collect, Puritan Performance finally wrote off its accounts receivable from Avery on September 5. Six months later, March 5, 2025, Puritan Performance received Avery's check for $19,000 with a note apologizing for the late payment. Requirement 1. Journalize the transactions for Puritan Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) June 1: Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Company on account. Ignore Cost of Goods Sold.
On June 30, 2021, the bank's records say that your company has $12,956.73 in its chequing account. You are aware of three outstanding cheques for a total of $2,112.19. During June 2021, the bank rejected two deposited cheques from customers totalling $654.19 because of insufficient funds and charged you $12.00 in service fees. You had not yet received notice about the bad cheques, but you were aware of and have recorded the $12.00 of service fees, Prior to adjustment on June 30, 2021, your Cash account should have a balance of: Multiple Choice $14,402.73. $15,711.11. $1,498.73. $10,202.35. < Prev 33 of 50 Next m
On January 31, Jema hardware received a check from a customer for payment of an invoice. The 6,000 invoice was dated May 22, and included credit terms of 1/10, n/45. On January 25, the customer returned P600 of the merchandise because it was defective. How would this transaction be recorded in Jema's cash receipts journal?
On May 15, Baxtor, Inc. sold $26,000 of merchandise to James, on account. Baxtor could not collect cash from James and wrote off the account. What is the journal entry to record the write-off, assuming Baxtor uses the allowance method? Bad Debt Expense $26,000 Miscellaneous Bank Fees $26,000 Allowance for Bad Debts $26,000 Accounts Receivable - James Allowance for Bad Debts $26,000 Utility Expense $26,000 $26.000 Bad Debt Revenue $26,000 Allowance for Bad Faith Unpaid Accounts $26,000
On January 1, 2018, Keiasia Company’s Accounts Receivable and the Allowance for Uncollectible Accounts showed balances of $24,000 and $1,200 respectively. During the year, the company reported $64,000 of credit sales, and cash collections of receivables amounted to $58,000. During the year, the company wrote of $1,400 of delinquent accounts. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2018 income statement will be: A. $1,230 B. $1,630 C. $230 D. $500 Answer is B, how do you get to 1,630
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Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the recovery of the bad debt is: Multiple Choice Account Title Credit Accounts Receivable-A. Hopkins Debit 2,000 Allowance for Doubtful Accounts 2,000 Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Cash 2,000 Accounts Receivable-A. Hopkins 2,000 Account Title Debit Credit Accounts Receivable-A. Hopkins 2,000 Bad debts expense 2,000
Co receives May 2017 bank statement showing $7000 on deposit. The Co's books show the account to have a cash balance of $6590. The reconciliation process May 31st revealed the following: of $3000 deposited over the month, the bank had not yet received the last deposit of $500 made on May 30th. The bank also collected $100 on a $90 Note Receivable plus $10 interest. Three checks had written for a total of $1000 had not yet cleared the bank. Furthermore, one of the checks written for $100 was incorrectly recorded by Co as having been $10. A deposit Co made for $50 was returned by the bank for Non-Sufficient Funds. Finally, the bank charged a $50 fee for the checking account. A) Reconcile the cash balance per the bank with the cash balance per the Co for May. B) Journalize the adjustments Co recorded on its books from the reconciliation.
Applying the direct write-off method to account for uncollectible Gate City Cycles had trouble collecting its account receivable from Shawna Brown. On June 19, 2016, Gate City finally wrote off Brown’s $700 account receivable. On December 31, Brown sent a $700 check to Gate City. At January 31, 2016, Knoll’s accounts receivable totaled $18,000. During February, she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016. Requirements Use the direct write-off method to journalize Knoll’s write-off of the uncollectible receivables. What is Knoll’s balance of Accounts Receivable at February 29, 2016?
Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,080 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.
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