24. A company is writing off 4 accounts:Jones$450Thomas359Wood468James340The company uses the allowance method to write off bad debts. What entry will theymake to write off the accounts?

To write off the accounts using the allowance method, you first need to ensure that there is an…

Answered: 24. A company is writing off 4…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reports accounts receivable of $180,000 on its balance sheet. The Allowance for Bad Debts has a credit balance of $20,000. If a specific customer's account with a balance of $8,000 is written off as uncollectible, what is the cash (or net) realizable value of the accounts receivable? a. $160,000 O b. $175,000 c. $172,000 Od. $200,000
ABC Company has the following account balances at year-end: Accounts receivable P80,000 Allowance for doubtful accounts 4,800 Bad debts expense 3,200 ABC should report accounts receivable at a. P72,000. b. P75,200. c. P76,800. d. P80,000.
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 receivable
7. A customer owes a business $650 and makes a partial payment of $200. The remainder is considered uncollectible. If the business uses the direct write-off method, its journal entry will involve a. a debit to Cash for $650 and credits to Allowance for Doubtful Accounts and Accounts Receivable for $200 and $450, respectively. b. a debit to Allowance for Doubtful Accounts for $650 and credits to Cash and Accounts Receivable for $200 and $450, respectively. c. debits to Cash and Bad Debts Expense for $200 and $450, respectively, and a credit to Accounts Receivable for $650.
14. Record the write-off. Choose * Account Payable * Allowance for Uncollectible Accounts * Sales Returns and Allowanced * Bad debt expense * Cash * Accounts Receivable
3. On July 19, 2022, a customer's account balance of $6,700 is written off as uncollectible. Record the write-off. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record write off of actual bad debts. Note: Enter debits before credits. Date General Journal Debit Credit July 19, 2022
13. On September 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on September I to record the write-off assuming the company uses the allowance method? a. Debit Bad Debts Expense $2.300; credit Accounts Receivable S2,300. b. Debit Allowance for Doubtful Accounts S2.300; credit Bad Debts Expense $2,300. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. 14. The direct write-off method a. Complies with the matching principle b. Is acceptable from a theoretical point of view c. Is only acceptable if bad debts are small, insignificant amounts d. Is the primary method used to recognize Bad Debt Expense 15. When the allowance method of recognizing bad debt expense is used, the entries at the time of collection of a small account previously written off would a. Increase net income b. Increase Allowance for Bad Debts c.…
Use the following T-account for Flag Corporation to answer questions 11 and 12 Beg Bal 187 150 3 End. Bal Accounts Receivable $ $ 7 18 6 15 19 11. Which of the following is an accurate description of the transactions effecting Accounts Receivable? OA Customers charged more on their accounts than they paid OB Customers paid more on their accounts than they charged OC the company incurred more debt than if paid off OD. the company paid off debt
Select the best answer for the question 12. What account will be debited to record an accounts receivable amount considered to be a bad debt if the direct write-off method of accounting is used? O A. Cash OB. Allowance for Doubtful Accounts OC. Sales OD. Uncollectible Accounts Expense Mark for review (Will be highlighted on the review page) revious Questio Next Question >> Jm
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,900 of its accounts receivable from Leer Company. March 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 transactions. View transaction list 49 6 Journal entry worksheet + prt sc } ] delete backspace k home num end 7
Q: What are the journal entries for the following transactions related to Uncollectable accounts? On January 31st, accounts receivable amount to Rs=10,000. On this date, the credit manager reviews the accounts receivable and estimates that approximately Rs=850 of these accounts will prove to be uncollectable. Assume that the customer (Ali enterprise) is gone out of business and Rs=300 account receivable from the customer is now worthless. Assume for example, that a past-due account receivable in the amount of Rs=150 from XYZ was written off on March 16, 2020. All of a sudden, XYZ pays the account in full. Record the journal entry.
Information related to Lady Gangster Ltd. For 2021 is summarized below: Total credit sales L5,000,00 Accounts receivable at December 31 1,750,000 Bad debts written off 66,000 Required: a. What amount of bad debts expense will Lady Gangster Ltd. Report if it uses direct write-off method of accounting for bad debts?

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24. A company is writing off 4 accounts: Jones $450 Thomas 359 Wood 468 James 340 The company uses the allowance method to write off bad debts. What entry will they make to write off the accounts?