On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Cheyenne Corp. estimates that 10% of its accounts receivable balance of $95,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Cheyenne Corp. determined that B. Jared's account was uncollectible and wrote off $1,100. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts) Account Titles and Explanation Date (To reverse write-off) (To record collection of write-off) Debit Credit
On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Cheyenne Corp. estimates that 10% of its accounts receivable balance of $95,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Cheyenne Corp. determined that B. Jared's account was uncollectible and wrote off $1,100. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts) Account Titles and Explanation Date (To reverse write-off) (To record collection of write-off) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Cheyenne Corp. estimates that
10% of its accounts receivable balance of $95,000 will become uncollectible and records the necessary adjustment to Allowance for
Doubtful Accounts. On May 11, 2022, Cheyenne Corp. determined that B. Jared's account was uncollectible and wrote off $1,100.
On June 12, 2022, Jared paid the amount previously written off.
Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented
when 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)
Account Titles and Explanation
Date:
v
(a)
(b)
(c)
(To reverse write-off)
Date of
Note
June 10
July 14
April 27
(To record collection of write-off)
Compute interest and find the maturity date for the following notes. (Round intermediate calculations to 2 decimal places
and final answers to O decimal places, e.g. 5,275. Use 360 days for calculation.)
Principal
$172,800
$154,800
$10,800
Interest
Rate(%)
6%
7%
8%
Terms
60 days
90 days
75 days
Debit
$
$
$
Credit
Interest
Maturity Date
>
>
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