Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.11BE
To determine
Allowance method for uncollectible accounts:
It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated, and recorded at the end of particular period. Under this method,
To record: The cash collection entry of books B on September 9.
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Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $9,400. On September 9, the customer unexpectedly pays the $9,400 balance.
Record the cash collection on September 9. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $7,200. On September 9, the customer unexpectedly pays the $7,200 balance.
Determine the financial statement effects of collecting cash from an account previously written off as uncollectible. (Amounts to be deducted should be entered with minus sign.)
Dexter 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.
Chapter 5 Solutions
Financial Accounting
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