Journalize the following transactions in the accounts of champion medical company, a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables. January 19th sold merchandise on account to Dr Dale Van dyken, $57,900. The cost of the merchandise sold was $31, 300. July 7th received $16,800 from Dr Dale Van dyken and wrote off the remainder road on the sale of January 19th as on collectible. November 2nd reinstated the account for Dr Van dyken that had been written off on July 7th and received $41,100 cash in full payment. for a compound transaction, if an amount box does not require an entry leave it blank. January 19th sale _____ _____ January 19th cost______ ______ July 7th ______ _______ _______ November 2nd reinstate _______ _______ November 2nd collection _______ _______
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Entries for uncollectible accounts, using direct write-off method
Journalize the following transactions in the accounts of champion medical company, a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables.
January 19th sold merchandise on account to Dr Dale Van dyken, $57,900. The cost of the merchandise sold was $31, 300.
July 7th received $16,800 from Dr Dale Van dyken and wrote off the remainder road on the sale of January 19th as on collectible.
November 2nd reinstated the account for Dr Van dyken that had been written off on July 7th and received $41,100 cash in full payment.
for a compound transaction, if an amount box does not require an entry leave it blank.
January 19th sale _____
_____
January 19th cost______
______
July 7th ______
_______
_______
November 2nd reinstate _______
_______
November 2nd collection _______
_______
Under the direct write-off method, uncollectible accounts are directly written off without any allowance for uncollectible accounts.
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