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. Net Realizable Accounts Cash + Value = Payable + ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ (1,050) (1,050) C. ΝΑ (1,050) d. ΝΑ NA 1,050 Multiple Choice O O Assets O O Option B Option A Option D Balance Sheet =Liabilities+ Stockholders' Equity Option C 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 Company writing off the customer's account? a. b. Net Realizable Accounts Cash + Value = Payable + ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ (1,050) (1,050) C. ΝΑ (1,050) d. ΝΑ NA 1,050 Multiple Choice O O Assets O O Option B Option A Option D Balance Sheet =Liabilities+ Stockholders' Equity Option C 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

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter6: Losses And Loss Limitations

Section: Chapter Questions

Problem 2CE

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Olena Mirrors records bad debt using the allowance, balance sheet method. They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The uncollectible percentage is 4.4%. On June 11, Olena Mirrors identifies one uncollectible account from Nadia White in the amount of $4,265. On September 14, Nadia Chernoff unexpectedly pays $1,732 toward her account. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. June 11, 2018 identification entry C. Entry for payment on September 14, 2018
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
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