At the end of 2021, Teal Mountain Co. has accounts receivable of $697,200 and an allowance for doubtful accounts of $22,590. 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 $4,513. a. Prepare the journal entry to record the write-off. b. What is the cash realizable value of the accounts receivable before the write- off and after the write-off?

At the end of 2021, Teal Mountain Co. has accounts receivable of $697,200 and an allowance for doubtful accounts of $22,590. 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 $4,513. a. Prepare the journal entry to record the write-off. b. What is the cash realizable value of the accounts receivable before the write- off and after the write-off?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 23CE: Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019,...

See similar textbooks

Similar questions

Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
h Prepare entry for write-off, and determine cash realizable value. BE8.4 (LO 2), AP At the end of 2021, Safer Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2022, it is learned that the company receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,300. a. Prepare the journal entry to record the write-off. b. What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? Prepare entries for collection of customer account write-off. blo of $500.000 and an allowance for doubtful accounts of $25.000.0n January 24 2033 it is learned that the
The following items are found in the cash account of AAA Company at December 31, 2021. The company’s controller asks your opinion whether the items listed below should be considered as part of cash account and come up with an adjusting entry to adjust the cash account.• A check worth P288,000 from customer who paid the account net of the 4% discount. The company records the transaction as credit to Accounts Receivable for the proceeds.• Postage stamps, P1,000;• Cash in closed bank (F Bank), P195,000;• Redemption fund, P300,000;• Sinking fund, P300,000. This will be used on May 1, 2022 to redeem the bonds payable;• Change fund, P25,000;• X Bank Checking Account No. 0004568, P410,000.• Y Checking Account No. 0002347, P275,000.;• Overdraft in Z Checking Account No. 00011256, P150,000 resulting from a withdrawal of a company’s check dated January 3, 2022 in payment of account, P450,000. This was recorded in the company’s disbursement ledger at December 31, 2021;• Overdraft in X Checking…
The following information is related to December 31, 2024 balances. • Accounts receivable . Allowance for doubtful accounts (credit) . Cash realizable value $1430000 (103000) 1327000 During 2025 sales on account were $390000 and collections on account were $217000. The company wrote off $21100 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that uncollectibles should be estimated at $144000. Bad debt expense for 2025 is: O $62100. O $144000. O $41000. O $19900
The following information is related to December 31, 2024 balances. ● Accounts receivable Allowance for doubtful accounts (credit) Cash realizable value $1570000 (111000) 1459000 During 2025 sales on account were $375000 and collections on account were $230000. The company wrote off $23000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectibles should be estimated at $144000. The change in the cash realizable value from 12/31/24 to 12/31/25 was
Prepare the General Journal entries necessary to bring the company's book balance of Cash into agreement with the reconciled balance.
The financial statements of Dimple Company included the following information: January 1, 2019 December 31, 2019 Accounts Receivable 1,200,000 Allowance for doubtful accounts 60,000 Sales 8,000,000 Cash collected from customers 7,000,000 The cash collections included a recovery of P10,000 from a customer whose account had been written off as worthless in 2018. During 2019, it was necessary to recognize doubtful accounts expense of P100,000 and write off worthless customers’ accounts of P30,000. On December 1, 2019, a customer settled an accounts of P30,000. On December 1, 2019, a customer settled an account by issuing a 12%,…
What is the adjusted CASH IN BANK on December 31, 2020? Love Company reported the following data in relation to cash on Dec. 31, 2020: * Checkbook balance, P4,000,000 * Undeposited collections, P400,000 * A customer check amounting to P200,000 dated January 2, 2021 was included in the December 31, 2020 checkbook balance. * Another customer check for P500,000 included in the checkbook balance but returned by the bank for insufficiency of posited on December 22, 2020 was fund. This check was redeposited on December 26, 2020 and cleared two days later. * A P400,000 check payable to supplier dated and recorded on December 30, 2020 was mailed on January 16, 2021. * A petty cash fund of P50,000 comprised the following on December 31 2020: 5,000 5,000 40,000 50,000 * A check of P40,000 was drawn on December 31, 2020 payable to the petty cash Coins and currencies Refundable deposit for returnable containers Petty cash vouchers Total
The following information is related to December 31, 2021 balances. • Accounts receivable $3490000 • Allowance for doubtful accounts (credit) ( 254000) • Cash realizable value $3236000 During 2022 sales on account were $ 885000 and collections on account were $ 500000. Also during 2022 the company wrote off $49000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $ 323000. The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a $ 322000 increase. $ 267000 increase. $ 370000 increase. $ 316000 increase.
4. Waran Co. has accounts receivable of $500,000 and an allowance for doubtful accounts of $20,000 at the end of 2015. On January 10, 2016, the company learns that its receivable from Ted Inc. is not collectible, and management authorizes a write-off of $3,000.a. Prepare the journal entry to record the write-off.b. What is the cash realizable value of the accounts receivable (1) before the write-off and after the write-off?
During August 2024, Link Company recorded the following Sales of $84,200 ($77,000 on account: $7,200 for cash), Ignore Cost of Goods Sold Collections on account, $60,500. .Write-offs of uncollectible receivables, $1,820 • Recovery of receivable previously written off, $500. Debit Requirements 1. Journalize Link's transactions during August 2024, assuming Link uses the direct write-off method Credit 2 Requirement 1. Joumalize Link's transactions during August 2024, assuming Link uses the direct write-off method Sales of $54,200 ($77,000 on account: $7,200 for cash), Ignore Cost of Goods Sold (Record debifs first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound journal entry) Date Accounts and Explanation Aug Journalize Link's transactions during August 2024, assuming Link uses the allowance method
The following transactions occurred for Salamon Co. in 2021. The beginning balance of Accounts Receivable is $200,000 and Allowance for Doubtful Accounts (ADA) has a credit balance of $10,000. Salamon recorded sales on account of $750,000. Salamon recorded cash sales of $270,000. Salamon Co. wrote off $8,000 of accounts receivable from Haar Co. that became uncollectible. Salamon Co. uses the allowance method. Salamon collected $625,000 of accounts receivable due. Salamon wrote off $2,500 of receivables from Starr that became uncollectible. Haar repaid Salamon half the amount that had been written off. (2 entries required) a. Prepare journal entries for all the above transactions b. Post the above entries to the T accounts for A/R and ADA and calculate the ending balance of each account. c. Based on the above transactions, if Salamon wants an adjusted ending balance in ADA of $14,000, prepare the necessary year end adjustment.