At the end of 2020, Crown Point Corp. has accounts receivable of $479,200 and an allowance for doubtful accounts of $30,300. On January 24, 2021, Crown Point learns that its $11,600 receivable from Hutley Inc. is not collectible. Management authorizes a write off. But on March 4, 2021, Crown Point Corp. receives payment in full of $11,600 from Hutley Inc. after the write off. Prepare the required journal entries to record this transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Mar. 4 (To reverse write off of account receivable) Mar. 4 (To rocord colloction of =account rocoivable)

At the end of 2020, Crown Point Corp. has accounts receivable of $479,200 and an allowance for doubtful accounts of $30,300. On January 24, 2021, Crown Point learns that its $11,600 receivable from Hutley Inc. is not collectible. Management authorizes a write off. But on March 4, 2021, Crown Point Corp. receives payment in full of $11,600 from Hutley Inc. after the write off. Prepare the required journal entries to record this transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Mar. 4 (To reverse write off of account receivable) Mar. 4 (To rocord colloction of =account rocoivable)

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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Penn Co.'s allowance for uncollectible accounts was $200,000 at the end of 2019 and $180,000 at the end of 2018. For the year ended December 31, 2019, Penn reported bad debt expense of $40,000 in its income statement. What amount did Penn debit to the appropriate account in 2019 to write off actual bad debts?
Current Attempt in Progress On December 31, 2021, the Allowance for Doubtful Accounts has an unadjusted debit balance of $1,020. Lawn Corporation estimates that 10% of its total accounts receivable balance of $94,700 will become uncollectible and records the necessary adjustment to the Allowance for Doubtful Accounts. On May 11, 2022, Lawn Corporation determined a J. Reno's account was uncollectible and wrote off $1,570. On June 12, 2022, Reno paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (List all debit entries before credit entries. 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.) Date Account Titles and Explanation Debit Credit (To reverse write-off of account receivable) (To record recovery of uncollectible amount)
On January 1, 2021 impatient inc. factored its accounts receivable of shs 100000 at a fee of 8%. Under the terms, of agreement, the company received shs 82000 in cash and the rest of the amount was retained by the factor as a security for any bad debts that may rise. Any excess of this security sum over the total bad debts was agreed to be returned by the factor at the end of the accounting period. That is, December 31, 2021. On December 31, 2021 the full amount of security sum was withheld by the factor because the actual bad debts totaled shs 11000 exceeding the security sum. Impatient incl. had already provided allowance for doubtful debts in the factored accounts receivable and a bad debts expense was recognized in the income statement of the year ended December 31, 2020. Required; Pass Journal entries to record the above transactions for Impatient Incl. both under factoring with recourse and factoring without recourse
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On March 1, 2019, Seymour Inc assigns its accounts receivable of 300,000 to Minnesota financing company with recourse. Minnesota financing company, the factor, charges a 4% fee and retains 10% for future returns and allowances. The recourse obligation is estimated by Seymour to be $21,000. On March 1, 2019, there was already an allowance for bad debts relating to these receivables of 15,000 (credit) in Seymour's books. (hint: Seymour must remove the allowance as part of the sale of its receivables, which results in a reduced loss on the sale of receivables.) provide 1.)Seymour's journal entry: 2.) assume during march Minnesota financing company is able to collect 273,000 and notifies Seymour of 5,000 of returns, 2,000 of sales discounts, and 22,000 of uncollectible accounts. provide the appropriate journal entry for Seymour to reflect these events. (hint: additional loss)
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