In-Class Question 3At the end of 2021, Morley Co. has accounts receivable of $700,000 and an allowance for doubtfulaccounts of $25,000. On January 24, 2022, it is learned that the company's receivable from Spears Inc. isnot collectible and therefore management authorizes a write-off of $4,300.Instructions(a) Prepare the journal entry to record the write-off.(b) What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after thewrite-off?

(a)Date Account TitleDebitCreditJan 24, 2022Allowance for Doubtful$4,300 Accounts Receivable…

Answered: In-Class Question 3 At the end of 2021,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Adams Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2019: Amount 10,000 Customer Billy Adams Stan Fry 8,000 Tammy Imes Shana Wagner 5,000 1,700 Total 24,700 a. Journalize the write-offs for 2019 under the direct write-off method. b. Journalize the write-offs for 2019 under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $2,600,000 of credit sales during 2019. Based on past history and industry averages, 1.75% of credit sales are expected to be uncollectible. c. How much higher or lower would Adams Company's 2019 net income have been under the direct write-off method than under the allowance method? %24
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The unadjusted trial balance of ABC Company on December 31, 2019, end of its first year of operation, showed among others: Accounts Receivable, P1,250,000 and Cash Sales, P4,560,000. Among its transactions for the year 2020 are the following: a. Sales on account, P5,500,000 b Total collections during the year, P3,500,000 c. The management adopted a policy of providing for doubtful accounts based on 5% of the outstanding receivable at the end of the year. What is the adjusting journal entry on December 31, 2020 in recognizing bad debt expense? Select the correct response: Dr. Bad Debt Expense 62,500; Cr. Allowance for Bad Debts 62,500 Dr. Bad Debt Expense 100,000; Cr. Allowance for Bad Debts 100,000 Dr. Bad Debt Expense 275,000; Cr. Allowance for Bad Debts 275,000 Dr. Bad Debt Expense 162,500; Cr. Allowance for Bad Debts 162,500
Current Attempt in At December 31, 2019, Windsor, Inc. Company had a credit balance of $18,700 in Allowance for Doubtful Accounts. During 2020, Windsor, Inc. wrote off accounts totaling $12,200. One of those accounts ($3,400) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $24,200. d Prepare journal entries to record the 2020 transactions of Windsor, Inc. Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record amount written off) (To reverse write-off) (To record collection of write-off) (To record estimated bad debts for the year) Debit Credit
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2019: Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible Not yet due $126,500 2% 1-30 days past due 89,200 12% 31-60 days past due 53,600 18% Over 60 days past due 31,800 35% Required: Part a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $28,947 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. Part b. Johnston Supplies, Inc. writes off $3,081 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. Part c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019.
I am completely lost on how to find the net realizable values
At January 1, 2024, Betty DeRose, Inc. had an allowance for doubtful accounts with a $4,390 credit balance. During 2024, Betty recorded $9,560 of write-offs and recorded $2,750 of recoveries of accounts receivable that had been written off in prior years. At December 31, 2024, Betty prepared the following aging schedule: Accounts Receivable not past due $150,000 $ 64,000 1-30 days past due 31-60 days past due $ 39,000 61-90 days past due $ 47,000 over 90 days past due $ 11,000 Calculate Betty's bad debt expense for 2024. % Uncollectible 2% 6% 9% 16% 34%
Good morning 22 abril 2020-2
At the end of 2020, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2021, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. Instructions a. Prepare the journal entry for Aramis Company to write off the Ramirez receivable. b. What is the net amount expected to be collected of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable? c. What is the net amount expected to be collected of Aramis Company’s accounts receivable after the write-off of the Ramirez receivable?
View Policies Current Attempt in Progress On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Sheffield Corp. estimates that 11% of its accounts receivable balance of $64,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Sheffield Corp. determined that B. Jared's account was uncollectible and wrote off $1,100. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To reverse write-off) (To record collection of write-off)
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