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CHP finds out on May 10th that Customer W's account receivable for $1,000 from services provided last year is uncollectible. Prior to writing-off Customer W's A/R the allowance for uncollectible accounts had a credit (normal) balance of $8,300 and their A/R balance was $285,000. Record the effects of the write-off on May 10th. 5/10 285,000 A/R Allowance for uncollectible accounts 8,300 What was CHP's net A/R before the write-off and after the write off? Before Write off $285,000 $8.300 $276,700 Accounts Receivable Allowance for uncollectible accounts Net accounts receivable Collection of Amounts Previously Written Off Later in the year Customer Wis able to pay $300 of his previous $1,000 he owed the company. He pays the company $300. Re-establish the Accounts Receivable for the amount paid by partially reversing the write-off on May 10th as follows: Accounts Receivable (A+) 300 After Allowance for uncollectible accounts (XA+→→A-) To re-establish a portion of Customer W's A/R previously written off 300

CHP finds out on May 10th that Customer W's account receivable for $1,000 from services provided last year is uncollectible. Prior to writing-off Customer W's A/R the allowance for uncollectible accounts had a credit (normal) balance of $8,300 and their A/R balance was $285,000. Record the effects of the write-off on May 10th. 5/10 285,000 A/R Allowance for uncollectible accounts 8,300 What was CHP's net A/R before the write-off and after the write off? Before Write off $285,000 $8.300 $276,700 Accounts Receivable Allowance for uncollectible accounts Net accounts receivable Collection of Amounts Previously Written Off Later in the year Customer Wis able to pay $300 of his previous $1,000 he owed the company. He pays the company $300. Re-establish the Accounts Receivable for the amount paid by partially reversing the write-off on May 10th as follows: Accounts Receivable (A+) 300 After Allowance for uncollectible accounts (XA+→→A-) To re-establish a portion of Customer W's A/R previously written off 300

FINANCIAL ACCOUNTING
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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AutoSave OFF Home Insert Draw Paste Page 47 of 95 Calibri B I U 20 Design V v 16916 words 50 ab X 2 V Layout Α Α΄ x² A References Aa ✓ A Αν English (United States) Mailings = Review V V 5/10 Asset A/R -400 1/2 AUA -400→ A+400 W= Packet Lecture-4 View ↓ V Liabilities NE Tell me Accounts Receivable Allowance for uncollectible accounts Net accounts receivable Chapter 5 Accessibility: Investigate 285,000 Common Stock NE A/R Saved to my Mac ✓ Stockholders' Equity AaBb CcDdEe AaBbCcDdEe Caption Accounts Receivable Allowance for uncollectible accounts Net accounts receivable 1 JRC Normal Retained Earnings NE Before $30,000 $4,500 $25,500 Practice CHP finds out on May 10th that Customer W's account receivable for $1,000 from services provided last year is uncollectible. Prior to writing-off Customer W's A/R the allowance for uncollectible accounts had a credit (normal) balance of $8,300 and their A/R balance was $285,000. Record the effects of the write-off on May 10th. Revenues NE What was CHP's net A/R before the write-off and after the write off? Before $285,000 $8,300 $276,700 Write off -400 -400 Allowance for uncollectible accounts (XA+→A-) To re-establish a portion of Customer W's A/R previously written off AaBb CcDdF Heading 1 Allowance for uncollectible accounts 8,300 300 Expenses NE Write off After 29,600 4,100 $25,500 Collection of Amounts Previously Written Off Later in the year Customer W is able to pay $300 of his previous $1,000 he owed the company. He pays the company $300. Re-establish the Accounts Receivable for the amount paid by partially reversing the write-off on May 10th as follows: Accounts Receivable (A+) After 300 Net income NE AaBbCcDdE Heading 2 Page 5-7 AaBbCcDdE Heading 3 Focus I AaBbCcDdE Heading 4 E Share Styles Pane I FB Editing Dictate Comments E Editor 100%
Transcribed Image Text:AutoSave OFF Home Insert Draw Paste Page 47 of 95 Calibri B I U 20 Design V v 16916 words 50 ab X 2 V Layout Α Α΄ x² A References Aa ✓ A Αν English (United States) Mailings = Review V V 5/10 Asset A/R -400 1/2 AUA -400→ A+400 W= Packet Lecture-4 View ↓ V Liabilities NE Tell me Accounts Receivable Allowance for uncollectible accounts Net accounts receivable Chapter 5 Accessibility: Investigate 285,000 Common Stock NE A/R Saved to my Mac ✓ Stockholders' Equity AaBb CcDdEe AaBbCcDdEe Caption Accounts Receivable Allowance for uncollectible accounts Net accounts receivable 1 JRC Normal Retained Earnings NE Before $30,000 $4,500 $25,500 Practice CHP finds out on May 10th that Customer W's account receivable for $1,000 from services provided last year is uncollectible. Prior to writing-off Customer W's A/R the allowance for uncollectible accounts had a credit (normal) balance of $8,300 and their A/R balance was $285,000. Record the effects of the write-off on May 10th. Revenues NE What was CHP's net A/R before the write-off and after the write off? Before $285,000 $8,300 $276,700 Write off -400 -400 Allowance for uncollectible accounts (XA+→A-) To re-establish a portion of Customer W's A/R previously written off AaBb CcDdF Heading 1 Allowance for uncollectible accounts 8,300 300 Expenses NE Write off After 29,600 4,100 $25,500 Collection of Amounts Previously Written Off Later in the year Customer W is able to pay $300 of his previous $1,000 he owed the company. He pays the company $300. Re-establish the Accounts Receivable for the amount paid by partially reversing the write-off on May 10th as follows: Accounts Receivable (A+) After 300 Net income NE AaBbCcDdE Heading 2 Page 5-7 AaBbCcDdE Heading 3 Focus I AaBbCcDdE Heading 4 E Share Styles Pane I FB Editing Dictate Comments E Editor 100%
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Step 1 - Introduction

Accounts receivable is an asset for the firm which represents an amount due from a customer. Accounts receivable has a normal debit balance and reported as a current asset on the balance sheet. An allowance account is created to record the estimated uncollectible accounts. Allowance account is treated as contra asset account and has a normal credit balance.

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