None TB MC Qu. 07-68 (Static) On December 31, Year 1, the Loudoun Corporation...On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowancemethod. 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, thiscustomer paid Loudoun the $1,050.Which of the following correctly states the effect of Loudoun Company writing off the customer's account?Balance SheetLiabilities + Stockholders' EquityIncome StatementAssetsCashNetRealizableValueAccountsPayable + StockCommonRetainedStatementof Cash+ Earnings Revenue-Expense Net IncomeFlowsa.NANANANANANANANANAb.NA(1,050)NANA(1,050)(1,050)NA(1,050)NAC.NA(1,050)(1,050)NANANANANANAd.NANA1,050(1,050)NANA(1,050)(1,050)NAMultiple ChoiceOption AOption D

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Answered: TB MC Qu. 07-68 (Static) On December…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6EB: Olena Mirrors records bad debt using the allowance, balance sheet method. They recorded $343,160 in...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000 on August 1. On December 31, Bank Enterprises determines the loan to be uncollectible. Larson had not paid anything toward the balance due on account. What is the journal entry recording the bad debt write-off?
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 restablishment of the receivable on April 4, Year 2? Cash 蛋蛋蛋白 NA a. b. NA C. NA d. NA Assets Multiple Choice + Net Realizable Value - 1,050 (1,050) (1,050) (1,050) 1,050 (1,050) Option A Option Balance Sheet Option C Liabilities + Accounts Payable + NA + NA (1,050) 1,050 + Stockholders' Equity Retained earnings NA (1,050) NA NA Common Stock NA NA NA (1,050) Revenue NA (1,050) NA NA Income Statement Expenses NA NA NA 1,050. = Net Income NA (1,050) NA (1,050) Statement of Cash Flows NA NA NA NA
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
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 recording the collection of the reestablished receivable on April 4, Year 2? A. B. ܫ C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option B Option D Option C Option A Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense ΝΑ ΝΑ (1,050) ΝΑ = Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA
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 recording the collection of the reestablished receivable on April 4, Year 2? Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA A. B. C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option A Option B Option D Option C Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense = ΝΑ ΝΑ (1,050) ΝΑ Net Income ΝΑ 1,050 1,050 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 recording the collection of the reestablished receivable on April 4, Year 2? A. B. C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option A Option D Option C Option B Balance Sheet = Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Revenue ΝΑ 1,050 ΝΑ ΝΑ Income Statement Expense = Net Income NA ΝΑ ΝΑ 1,050 (1,050) 1,050 ΝΑ ΝΑ Statement of Cash Flows NA 1,050 OA 1,050 OA 1,050 OA Jhay
K Blended Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Blended wrote off uncollectible receivables of $2,200. Blended recorded Bad Debts Expense of $3,300. What is Blended's year-end balance in Allowance for Bad Debts? OA. $5,500 OB. $1,100 C. $2,100 OD. $4,300 1
On December 31, 20X1, Vale Company had an unadjusted credit balance of $1,000 in its Allowance for credit losses. Vale analyzes its historical experience related to receivables in specific age categories and estimates the expected credit loss for each category based on government forecasts of the economy. The resulting analysis is shown below. Age Amount Estimated Credit Loss 0–30 days $ 60,000 5 % 31–60 days 4,000 10 Over 60 days 2,000 70 Required: What amount should Vale report as Allowance for credit losses in its December 31, 20X1, balance sheet?
Required information [The following information applies to the questions displayed below.] At year-end December 31, Snowpoint Supply Company estimates its bad debts as 0.70% of its annual credit sales of $675,000. Snowpoint records its bad debts expense for that estimate. On the following February 1, Snowpoint decides that the $338 account of P. Elm is uncollectible and writes it off as a bad debt. On June 5, Elm unexpectedly pays the amount previously written off. repare Snowpoint's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list Journal entry worksheet K 1 2 3 4 before credits. 5 Record the estimated bad debts expense. 4
Brickman Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Brickman wrote off uncollectible receivables of $2,100. Brickman recorded Bad Debts Expense of $2,700. What is Brickman’s year-end balance in Allowance for Bad Debts? a. $1,600 b. $4,800 c. $3,700 d. $600

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