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.
How do I solve Cash Net Realizable Value based on this journal entry?
Miller Corporation’s December 31, 2019, bank statement showed a $2,041.25 balance. On this date, Miller’s Cash account reflected a $150.90 overdraft. In reconciling these amounts, the following information is discovered: 1. Cash on hand for undeposited sales receipts, December 31, $131.25. 2. Customer NSF check returned with bank statement, $426.20. 3. Cash sales of $625.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank. 4. Note receivable of $2,400.00 and interest of $24 collected by the bank and not recorded on the books. 5. Deposit in transit December 31, $330.00. 6. A customer check for $195.40 in payment of its account was recorded on the books at $945.10. 7. Outstanding checks, $2,030.55. Includes a duplicate check of $63.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account…
Miller Corporation’s December 31, 2019, bank statement showed a $2,054.25 balance. On this date, Miller’s Cash account reflected a $326.60 overdraft. In reconciling these amounts, the following information is discovered: 1. Cash on hand for undeposited sales receipts, December 31, $133.25. 2. Customer NSF check returned with bank statement, $424.20. 3. Cash sales of $627.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank. 4. Note receivable of $2,300.00 and interest of $23 collected by the bank and not recorded on the books. 5. Deposit in transit December 31, $340.00. 6. A customer check for $380.30 in payment of its account was recorded on the books at $830.30. 7. Outstanding checks, $2,032.55. Includes a duplicate check of $65.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account…
Prepare the General Journal entries necessary to bring the company's book balance of Cash into agreement with the reconciled balance.
May you please help me determine the true cash balance for February 28, 2020?
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 accounting records of BEE Company show the summary data of its cash receipts and payments for November 2019. Its November Cash Balance has P42,230.003; its Total Cash Receipts is P40,000.00, Total Checks issued is P25,000.00. The company received its Bank Statement indicating a balance of P82,000.00. The following reconciling items were discovered. Item No. 1-A deposit of cash receipts P3,000.00 of November 30 is too late to include in the bank statement. Item No. 2- Outstanding checks were: No. 1234-P2,652.00; No. 1235-P6,557.00; No. 1236-P6,095.00. Item No. 3- The bank collected a note left for collection amounting to P20,000.00 plus interest earned of P600.00 Item No. 4-Check No. 1237-P P690.00 was incorrectly charged by the bank as P960.00 Item No. 5-Check No. 1238-P cleared by the bank with P4,200.00 has been recorded in the company's book as P2,400.00. This was for the payment of the creditor's account. Item No. 6-The customer returned the check for NSF, P7,800.00. Item No.…
The following Information was avallable to reconcile Montrose Company's book balance of Cash with Its bank statement balance as of October 31, 2020: a. After all posting was completed on October 31, the company's Cash account had a $13,219 debit balance but its bank statement showed a $29,355 balance. b. Cheques #296 for $1,334 and #307 for $12,754 were outstandıng on the September 30 bank reconcilliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written in October, were not among the cancelled cheques returned with the statement. c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, It was found that cheque #320 for the October rent was correctly written for $4,090 but was erroneously entered in the accounting records as $4,90o. d. A credit memo enciosed with the bank statement Indicated that there was an electronic…
The River Company's ledger showed a balance in its cash account at December 31, 2021 of P682,250, which was determined to consist of the following:Petty cash fund - P3,600Checking account in BDO (check of P6,000 is still outstanding). - P336,750Notes receivable in the possession of a collecting agency - P25,000Undeposited receipts (including a customer's check of P10,500 dated December 28, 2021 and traveler's check for P10,000) - P178,000Bond sinking fund cash - P134,000IOUs signed by employees - P4,900Total - P682,250At what amount should "Cash on hand and in bank" be reported at December 31, 2021?
Present the Reconciliation per Company’s Book The accounting records of BEE Company show the summary data of its cashreceipts and payments for November 2019. Its November Cash Balance hasP42,130.00; its Total Cash Receipts is P40,000.00, Total Checks issued isP25,000.00. The company received its Bank Statement indicating a balance ofP82,000.00. The following reconciling items were discovered.Item No. 1 – A deposit of cash receipts P3,000.00 of November 30 is too late toinclude in the bank statement.Item No. 2 – Outstanding checks were: No. 1234-P2,652.00; No. 1235-P6,557.00;No. 1236-P6,095.00.Item No. 3 – The bank collected a note left for collection amounting to P20,000.00plus a service charge of P600.00. Item No. 4-Check No. 1237-P P690.00 was incorrectly charged by the bank asP960.00Item No. 5-Check No. 1238-P cleared by the bank with P4,200.00 has been recordedin the company’s book as P2,400.00. This was for the payment of the creditor’saccount.Item No. 6-The customer returned…
What is the accounts receivable balance at December 31, 2019?