Preblem 4-2 (IAA)Credible Company provided the following T-accountsummarizing the transactions affecting the accounts receivablefor the current year:Accounts Receivable600.000 Collections from customers 5,300,00035,000Jan. 1 balanceCharge salesShareholders'6,000,000 WriteoffMerchandise returns40,000subscriptionsDeposit on contractClaims against commoncarrier for damagesIOUS from employeesCash advance to affiliates 100,000Advahces to a supplier200,000 Allowances to customerfor shipping damagesCollections on carrier claims100,000| Collection on subscriptions25,000120,00040,00050,00010,00050,000Required:a. Compute the correct amount of accounts receivable.b. Prepare one compound entry to adjust the accounts receivable.c. Compute the amount to be presented as "trade and otherreceivables" under current assets.d. Indicate the classification and presentation of the other items.

Name: Preblem 4-2 (IAA)Credible Company provided the following T-accountsum
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Preblem 4-2 (IAA)Credible Company provided the following T-accountsummarizing the transactions affecting the accounts receivablefor the current year:Accounts Receivable600.000 Collections from customers 5,300,00035,000Jan. 1 balanceCharge salesShare

Solution: Introduction: Accounts Receivable means the amount of money payable(owe) to the company…

Business

Accounting

a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as "trade and othem receivables" under current assets. d Indicote the olege

a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as "trade and othem receivables" under current assets. d Indicote the olege

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which account is least likely to appear in an adjustingjournal entry?a. Cashb. Interest Receivablec. Income Tax Expensed. Salaries and Wages Expense
1. How many types of Transcation explain each with suitable example? 2. Define Capital Account and Drawing Account. 3. What is meant by Ledger? 4. Define Rectifying Entreies with example. 5. Define Adjustment Entries with example.
1) What is the difference between Interest Receivables and Account Receivables and Interest Income?2) What statements does each appear on and are al DR accounts?
The following accounts have normal debit balances:a. Assetsb. Liabilitiesc. Revenuesd. All of the listed accounts have a normal debit balance.
The realizable amount of notes receivable is considered. a. Income b. all of the above c. Noncurrent asset d. Current asset
Distinguishing between current and non-current items on the balance sheet and presenting a subtotal for current assets and liabilities is referred to as: B . an unclassifi ed balance sheet
5. TRUE OR FALSE. If assignment of receivables is made under a notification basis, the company, the assignor records any collection from its client ahead of the financing institution.
The following source document is used to support the transactions related to returns outwards to creditors/accounts payables: O a. Purchases invoices O b. Debit note O c. Credit note O d. Payable note
The total credit equal to the total of debit in ledger account is called: O a. Credit balance O b. Negative balance O C. No balance O d. Positive balance
Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Accounts Receivable
22. A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correcer? a) Every debit balance repeesents an expense b) Assets are represented by debit balances c) Liabilities are represented by debit balances d) Income is included in the list of debit balance
Sales Returns and Allowances account is report it like a. contra-revenue account on the income statement. b. current liability on the balance sheet. c. deduction from accounts receivable on the balance sheet. d. selling expense on the income statement.