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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i need the answer for question number 2
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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