י Plankton Ltd deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following Time left 1:21:05 information was extracted from the accounting records at 30 June 2023: Credit Sales Sales returns and allowances Cash collected $ 552,000 37,900 Debts to be written off Allowance for Doubtful Debts 1 July 2022 319.120 4,022 2,645 Cr Assume that Plankton Ltd uses the direct write-off method of accounting for bad debts. What would the general journal entry be to write off the bad debt? Select one: O a. Dr Bad debts expense $4,022; Credit Allowance for doubtful debts O b. Dr Bad debts expense $1,377; Credit Allowance for doubtful debts $1,377 O c. Dr Bad debts expense $4,022; Credit Accounts receivable $4,022 O d. Dr Bad debts expense $1,377; Credit Accounts receivable $1,377 O e. None of the above 0

י Plankton Ltd deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following Time left 1:21:05 information was extracted from the accounting records at 30 June 2023: Credit Sales Sales returns and allowances Cash collected $ 552,000 37,900 Debts to be written off Allowance for Doubtful Debts 1 July 2022 319.120 4,022 2,645 Cr Assume that Plankton Ltd uses the direct write-off method of accounting for bad debts. What would the general journal entry be to write off the bad debt? Select one: O a. Dr Bad debts expense $4,022; Credit Allowance for doubtful debts O b. Dr Bad debts expense $1,377; Credit Allowance for doubtful debts $1,377 O c. Dr Bad debts expense $4,022; Credit Accounts receivable $4,022 O d. Dr Bad debts expense $1,377; Credit Accounts receivable $1,377 O e. None of the above 0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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