At the end of 2016, Skysong, Inc. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300.1. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,480.2. On March 4, 2017, Skysong, Inc. receives payment of $4,480 in full from Madonna Inc.Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)No. Account Titles and ExplanationDebitCredit1.2.(To record recovery of accounts receivable.)(To record collection of accounts receivable.)

Accounts receivable: Accounts receivable are money owed to business from debtors. These are payments…

Answered: At the end of 2016, Skysong, Inc. has…

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, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,301, Windsor, Inc. estimates that 8% of its accounts receivable balance of $97,300 will become uncollectible and records 1. the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2017, Windsor, Inc. determined that B. Jared's account was uncollectible and wrote off $1,120. 3. On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. (Credit account titles are automatically Indented when amount Is entered. Do not Indent manually.) No. Date Account Titles and Explanation Debit 1. 3:01
On January 1, 2018, Keiasia Company’s Accounts Receivable and the Allowance for Uncollectible Accounts showed balances of $24,000 and $1,200 respectively. During the year, the company reported $64,000 of credit sales, and cash collections of receivables amounted to $58,000. During the year, the company wrote of $1,400 of delinquent accounts. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2018 income statement will be: A. $1,230 B. $1,630 C. $230 D. $500 Answer is B, how do you get to 1,630
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On December 31, 2017, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000. Assume that on February 2, 2018, Extreme Fitness received a payment of $500 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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At the end of 2020, Bonita Company has accounts receivable of $960,000 and an allowance for doubtful accounts of $48,000. On January 16, 2021, Bonita Company determined that its receivable from Ramirez Company of $7,200 will not be collected, and management authorized its write-off. What is the net amount expected to be collected of Bonita Company’s accounts receivable after the write-off of the Ramirez receivable? Net amount expected to be collected $
The Accounts Receivable balance for Lake, Inc. at December 31, 2017, was $20,000. During 2018, Lake earned revenue of $454,000 on account and collected $325,000 on account. Lake wrote off $5,600 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 5% of accounts receivable. Requirements 1. Assume Lake had an unadjusted $2,700 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lake’s December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. 2. Assume Lake had an unadjusted $2,400 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lake’s December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method.
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From inception of operations to December 31, 2015, Harris Corporation provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 2% of credit sales; bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year-end adjustments to the allowance account were made. Harris’s usual credit terms are net 30 days. The balance in the Allowance for Doubtful Accounts was $130,000 at January 1, 2016. During 2016, credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Harris upgraded its computer facility in November 2016, and an aging of accounts receivable was prepared for the first time as of December 31, 2016. A summary of the aging is as follows: Classification by Balance in Each…
At the end of 2021, Tamarisk, Inc. has accounts receivable of $740,700 and an allowance for doubtful accounts of $37.700. On January 24,2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $6,300. On March 4, 2022, Tamarisk, Inc. receives payment of $6,300 in full from Madonna Inc. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation (To reverse write-off) (To record collection from Madonna) Debit Credit SUPPORT
1. On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,293, Pharoah Company estimates that 8% of its accounts receivable balance of $88,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2017, Pharoah Company determined that B. Jared’s account was uncollectible and wrote off $1,166. 3. On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Choose a transaction date December 31, 2016May 11, 2017June 12, 2017 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount 2. Choose a…
On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $13,000. Required: Assume that on February 2, 2021, Extreme Fitness received a payment of $800 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the reversal of a customer account previously written off in the amount of $800. On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so…

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