Drama Corporation uses the allowance method for estimating uncollectible accounts.   Required: Prepare journal entries to record the following transactions:  January 5   Sold merchandise to Kim K for $1,500, terms n/15. April 15   Received $300 from Kim K on account. August 21   Wrote off as uncollectible the balance of the Kim K account when she declared bankruptcy. October 5   Unexpectedly received a cheque for $350 from Kim K.

Q: On March 3, Sandhill Appliances sells $764, 900 of its receivables to Western Factors Inc Western…

A: Accounts receivable (AR) refers to the balance of money due to an entity for the items or services…

Q: Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000…

A: Bad Debt means expenses related to those accounts receivables, for which it is estimated that due…

Q: Mar. 17 Received $1,080 from Shawn McNeely and wrote off the remainder owed of $4,350 as…

A: Journal: Recording of a business transactions in a chronological order.

Q: Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December…

A: The allowance for an uncollected account refers to the amount that is not expected to be received…

Q: Prapare the journal entry for the following: December 17: Byte was informed that Mr. Madoff who has…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: Window World extended credit to customer Nile Jenkins in the amount of $131,900 for his purchase of…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Presented below are two independent situations. (a) On March 3, Kitselman Appliances sells…

A: Factoring indicates to a transaction in which the corporation sold its receivable dues to the third…

Q: Gomez Corporation uses the allowance method to account for uncollectibles. On January 31, it wrote…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Gomez Corporation uses the allowance method to account for uncollectibles. On January 31, it wrote…

A: Bad debts expense: Bad debt expense is recognized in the books of the company when a debtor is…

Q: Journalize the following transactions using the direct write-off method of accounting for…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: Mar. 17 Received $810 from Shawn McNeely and wrote off the remainder owed of $4,820 as…

A: When there is any doubts regarding collection of any account receivable then company can write off…

Q: On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500…

A: Under allowance method, bad debt recovered will first reinstated that means accounts receivable…

Q: Instructions Apr. 15. Received $1,800 from Joe Brown and wrote off the remainder owed of $2,700 as…

A:

Q: 1. 2. 3. a) Prepare (summary) journal entries to record the items noted above. (If no entry is…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Journalize the following transactions,

A: Transaction is: March 17-received $275 from Shawn McNeeley and wrote off the remainder owed of…

Q: Jameel Company applies the direct write-off method in accounting for uncollectible accounts.…

A: To prepare journal entries

Q: ermines that it cannot collect y unexpectedly pays its accoun es to record the above transact

A: Answer : Date Account title Debit Credit 11 March Bed debt expenses a/c Dr. $8,600     To…

Q: Window World extended credit to customer Nile Jenkins in the amount of $133,900 for his purchase of…

A: When services are provided on account to customers, then this will become accounts receivable for…

Q: Journalize the following transactions using the direct write-off method of accounting for…

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

Q: Apr. Aug. 15. Received $1,800 from Joe Brown and wrote off the remainder owed of $2,700 as…

A: The journal entries are prepared to record the transactions on regular basis. The allowance for…

Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the…

A: Note: Under the Direct write-off method, bad debts expense are recorded when the company is sure…

Q: Journalize the following transactions, using the allowance method of accounting for uncollectible…

A: Accounts receivables represents the money that the business is yet to receive from its customers.

Q: The chief accountant for Bramble Corporation provides you with the following list of accounts…

A: The present policy used to directly write off accounts as and when a bad debt occurs violates…

Q: Chocolate Corner Company had the following transactions during the current year: Apr. 8. Received a…

A: Formula : Interest = (Amount of Note x rate) x number of days / 360 days

Q: Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as…

A: Journal Entry: Journal entry is the act of keeping records of transactions. Transactions are listed…

Q: Journalize the following transactions using the direct write-off method of accounting for…

A: Journal entry is the first step to record the transactions in the books of account. Journal entry…

Q: The ledger of Teal Mountain Inc. at the end of the current year shows Accounts Receivable $74,000;…

A: Alternatively, 'Uncollectibles expense account' can be used in place of 'bad debts expense'.

Q: Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect…

A: Journal entry is an art of recording, summarizing and classifying the business transactions into…

Q: Solstice Company determines on October 1 that it cannot collect $61,000 of its accounts receivable…

A: The answer is: Debit Bad debts expense $61,000 Credit Accounts Receivables  $61,000

Q: Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7% note from…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: On May 15, Baxtor, Inc. sold $26,000 of merchandise to James, on account. Baxtor could not collect…

A: Accounts receivable means those customer accounts to whom credit sales has been made and amount has…

Q: es Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: On March 3, Sheridan Company sells $707,700 of its receivables to Western Factors Inc. Western…

A: A journal entry is a process of recording accounting transactions that occur in a business in a…

Q: Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7 % note from…

A: NOTES RECEIVABLEA note receivable is a kind of promise in writing that the holder is entitled to…

Q: A credit sale is made on July 10 for $800, terms 4/10, n/30. On July 12, $150 of goods are returned…

A: Using perpetual inventory system, the cost of goods sold ia recorded with every sales transaction.…