The maker of a $240,000, 6%, 90-day note receivable failed to pay the note on the due date of November 30. What accounts should be debitedand credited by the payee to record the dishonored note receivable?
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Q: What accounts should be debited and credited by the payee to record the dishonored note receivable?
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The maker of a $240,000, 6%, 90-day note receivable failed to pay the note on the due date of November 30. What accounts should be debited
and credited by the payee to record the dishonored note receivable?
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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?9. The maker of a $240,000, 6%, 90-day note receivable failed to pay the note on the due date of November 30. What accounts should be debited and credited by the payee to record the dishonored note receivable? 10. The note receivable dishonored in Discussion Question 9 is paid on December 30 by the maker, plus interest for 30 days at 9%. What entry should be made to record the receipt of the payment? I need help with #10On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D. Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280
- Timmons Company had a January 1 credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year: Apr. 15 Bard’s account receivable of $5,700 was deemed un-collectable. July 1 Drake paid the full amount of a previously written-off account receivable. This receivable of $2,300 had been written off in the prior year. Dec. 31 Bad debts expense of $7,500 was recorded. What amount should appear in the allowance for doubtful accounts in the December 31 balance sheet for the current year?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 2,000Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,100 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. Record write off of Leer Co. account. Record the reinstatement of an account previously written off. Record the cash received on account.
- 4. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense 5. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to - record the collection of the note should include a a. credit to Notes Receivable for $20,300 b. debit to Interest Receivable for $300 c. credit to Interest Revenue for $300 d. debit to Notes Receivable for $20,000 6. The receivable that is usually evidenced by a formal, written instrument of credit is a(n) a. trade receivable b. note receivable c. accounts receivable d. income tax receivableCalculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable, and the net realizable value of the company’s accounts receivable. Assume that East Bay, Inc. adopts a policy of writing off as worthless all unpaid accounts receivable over 120 days old.James Company uses the allowance method for uncollectible accounts. James Company accepted a $8,500, 6%, 90-day note dated May 16, from Davis Company in exchange for its past-due account receivable. Make the necessary general journal entries for James Company on May 16 and the August 14 maturity date, assuming that the: a. Note is honored. b. Note is dishonored.
- Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $61,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice's entries for recovery of this bad debt. View transaction list Journal entry worksheet Debit Credit >Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $52,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice’s entries for recovery of this bad debt. Record the reinstatement of the account previously written off