Provide answer in this general account query Collection of a $1,000 Accounts ReceivableA) increases an asset $1,000; decreases an asset $1,000.B) decreases a liability $1,000; increases stockholders' equity $1,000.C) decreases an asset $1,000; decreases a liability $1,000.D) increases an asset $1,000; decreases a liability $1,000.

The correct answer is:A) increases an asset $1,000; decreases an asset $1,000. Explanation:When a…

Answered: Collection of a $1,000 Accounts…

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter5: Ethical Responsibilities Of Independent Auditors

Section5.6: Richard Grimes, Staff Accountant

Problem 1Q

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ch of the following is not considered a current liability? a. Accounts Payable b. Unearned Revenue c. the component of a twenty-year note payable due in year 20 d. current portion of a noncurrent note payable 4. The following is selected financial data from Block Industries: Cash Accounts receivable Equipment $20,000 13,400 10,650 5,000 sasuadxa pieda 12,300 Accounts payable Unearned revenue Long-term notes payable Common stock Revenue Sales tax payable Interest expense Depreciation expense 7,500 10,000 11,700 6,000 4,500 1,000 How much does Block Industries have in current liabilities?
a. The following item is not a debt: Dividends payable in shares. Advances paid by clients on contracts. Accumulated estimated warranty costs. The portion of a long-term obligation to be paid within the next year. b. Accounts payable: They are not reported at their present value. When they report their net amount, a Purchase Discounts account is used; when they are reported at their gross amount, the account of Losses due to discounts on purchases is used. All of the above. None of the above.
Suppose the balance in the Allowance for Doubtful Accounts at the end of year is a $400 Debit balance before adjustment. The company estimates future uncollectible accounts to be $3,200. At what amount would Bad Debt Expense be reported in the current year's income statement? A. $400 B. $2,800 C. $3,600 D. $3,200
Using the allowance method, the effect on the current year’s financial statements of writing off an account receivable generally is to a. Decrease total assets.b. Decrease net income.c. Both a. and b.d. Neither a. nor b.
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Provide correct net realizable value of accounts receivable?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1. A note receivable due in 18 months is listed on the balance sheet under the caption A. current assets B. investments C. long-term liabilities D. fixed assets 2. Two methods of accounting for uncollectible accounts are the A. direct write-off method and the accrual method B. direct write-off method and the allowance method C. allowance method and the accrual method D. allowance method and the net realizable method 3. What is the type of account and normal balance of Allowance for Doubtful Accounts? A. contra asset, debit B. asset, credit C. contra asset, credit D. asset, debit
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25) Under the direct-write-off method, uncollectible accounts expense is recognized A. As a percentage of net sales during the period. B. As a percentage of net credit sales during the period. C. As indicated by aging the accounts receivable at the end of the period. D. As specific accounts receivable are determined to be worthless.
What is the amount of write offs during Year 2 based on the following financial information? Balance Sheet Excerpts As At Year Year 2 Year 1 End(000s) Gross Accts Receivable Allowance for Doubtful Accounts Net Accts Receivable Provision for Bad Debt O $15 $20 $37 $52 $456 $20 $437 $25 $321 $32 $294 $40
Why is the answer C in detail please

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Collection of a $1,000 Accounts Receivable A) increases an asset $1,000; decreases an asset $1,000. B) decreases a liability $1,000; increases stockholders' equity $1,000. C) decreases an asset $1,000; decreases a liability $1,000. D) increases an asset $1,000; decreases a liability $1,000.