Aug. 1: Received amount owed on June 2 note plus interest at the maturity date.DescriptionDebitCreditCash vNotes ReceivableInterest RevenueAug. 24: Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accountsreceivable balance. (The allowance method is used in accounting for uncollectible receivables.)DescriptionDebitCreditCash vAllowance for Doubtful Accounts vAccounts Receivable-FinleySept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment.DescriptionDebitCreditAccounts Receivable-Finley vAllowance for Doubtful Accounts vCashAccounts Receivable-Finley vSept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%.DescriptionDebitCreditLand vInterest ExpenseNotes Payable v

The journal entries are prepared to keep the record of day to day transactions of the business.

Aug. 1: Received amount owed on June note plus interest at the maturity date. Description Debit Credit Cash v Notes Receivable il Interest Revenue v Aug. 24: Received $7,600 on the Finley account and wrote off the remainder ovwed on a $9,000 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) Description Debit Credit Cash v Allowance for Doubtful Accounts

Aug. 1: Received amount owed on June note plus interest at the maturity date. Description Debit Credit Cash v Notes Receivable il Interest Revenue v Aug. 24: Received $7,600 on the Finley account and wrote off the remainder ovwed on a $9,000 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) Description Debit Credit Cash v Allowance for Doubtful Accounts

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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Under the allowance method, when $600 is authorised to be written off, the journal entry would be Select one: a. Debit Accounts Receivable $600, Credit Allowance for Doubtful Debts $200 b. Debit Bad Debts Expense $600, Credit Accounts Receivable $600 c. Debit Bad Debts Expense $600, Credit Allowance for Doubtful Debts $600 d. Debit Allowance for Doubtful Debts $600, Credit Accounts Receivable $600
The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
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Oo.151. Subject :- Account
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