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1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method

1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method

FINANCIAL ACCOUNTING
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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i need the answer for question number 2

Assignment: 1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method
Transcribed Image Text:Assignment: 1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method
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