A debt of $1,500 has been written off as an irrecoverable receivable, six months later it is announced that the company will recover $500 out of $1,500- what will be the journal entry a- Debt-cash-500, credit receivable 500 b- Debit receivable- 500, credit irrecoverable receivable-500 c- Debit-receivable-500, credit-cash 500 d- Debit irrecoverable receivable expense-500,credit-allowance for irrecoverable receivables-500

A debt of $1,500 has been written off as an irrecoverable receivable, six months later it is announced that the company will recover $500 out of $1,500- what will be the journal entry a- Debt-cash-500, credit receivable 500 b- Debit receivable- 500, credit irrecoverable receivable-500 c- Debit-receivable-500, credit-cash 500 d- Debit irrecoverable receivable expense-500,credit-allowance for irrecoverable receivables-500

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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On December 31, 2024, a company had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $47,500 and $2,000, respectively. During 2025, the company wrote off $700 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,800 at December 31, 2025, Bad debt expense for 2025 would be: Multiple Choice $3,500 $700 $7,500 $3.000 G Ⓒ 100 Ⓒ HI L
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
A business issued a 60-day, 15% note for $92,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360 days in a year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. Transaction Account Debit Credit a. b.
A company issues a note receivable in place of an outstanding accounts receivable balance. The note is issued March 1. The amount of the note is $10,000, the interest rate is 4.5% and the term is 2 months. When the note matures May 1, the note plus the interest is paid. Assuming the accounts receivable replacement with the note, and the payment of the note all occurred in the same fiscal year, what impact does this have on the year's financial statements? O no overall impact on assets or profit for the year O total assets increase by $10,000 and profit increases by $75 O total assets and profits increase by $75 O total assets increase by $75 and profit decreases $10,000
H
At year end, Accounts Receivable had a balance of $820,000 and it is estimated that 4% of accounts receivable will be uncollectible. The Allowance for Bad Debts account has a credit balance of $5,000 and the company use the percent of receivables method to record bad debts expense. The adjusted balance in the Allowance for Bad Debts account should be a credit of OA. $37,600 OB. $32,600 OC. $27,800 OD. $32,800
Beginning balances: Allowance for Doubtful Accounts - $45,000 Accounts Receivable - $3,000,000 Bad Debt percent of credit sales – 1.5% Total Credit Sales – $38,000,000 1) Estimate bad debt expense using percent of sales method 2) Record transaction. 3) Show new adjusted allowance account 4) In January the next year, $48,000 is determined to be uncollectible. Show the entry and adjust accounts.
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Lundquist Company received a 60-day, 6% note for $37,500, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410…
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12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?