**Educational Exercise: Accounting for Extreme Fitness****Scenario:**On December 31, 2020, Extreme Fitness shows adjusted balances of:- Accounts Receivable: $1,000,000- Allowance for Doubtful Accounts: $95,000By January 2, 2021, it is identified that certain accounts worth $30,000 are uncollectible, leading to their write-off.**Tasks:****a.** Determine the net accounts receivable to be reported on December 31, 2020.**b.** Journal Entry for Write-Off: - Record the write-off on January 2, 2021.**c-1.** Post-Write-Off Reporting: - With no further transactions by January 3, 2021, calculate the net accounts receivable at that date.**c-2.** Change Evaluation: - Identify if there is any change in net accounts receivable since December 31, 2020.**Instructions:**Input your findings in the tabs provided for each requirement. Start with "Req A" for task (a).This exercise aims to enhance understanding of accounts receivable adjustments and the impact of write-offs in accounting practices.

Net Accounts receivable is the balance after deducting allowance for doubtful accounts from gross…

On December 31, 2020, Extreme Fitness has adjusted balances of $1,000,000 in Accounts Receivable and $95,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $30,000. Required: a. What amount would the company report as its net accounts receivable on December 31, 2020? b.Prepare the journal entry to write off the accounts on January 2, 2021. c-1. Assuming no other transactions occurred between December 31, 2020, and January 3, 2021, what amount would the company report as its net accounts receivable on January 3, 2021? c-2. Has net accounts receivable changed from December 31, 2020? Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 What amount would the company report as its net accounts receivable on December 31, 2020? Net Accounts Receivable Req A Req B >

On December 31, 2020, Extreme Fitness has adjusted balances of $1,000,000 in Accounts Receivable and $95,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $30,000. Required: a. What amount would the company report as its net accounts receivable on December 31, 2020? b.Prepare the journal entry to write off the accounts on January 2, 2021. c-1. Assuming no other transactions occurred between December 31, 2020, and January 3, 2021, what amount would the company report as its net accounts receivable on January 3, 2021? c-2. Has net accounts receivable changed from December 31, 2020? Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 What amount would the company report as its net accounts receivable on December 31, 2020? Net Accounts Receivable Req A Req B >

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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At the end of 2021, Tamarisk, Inc. has accounts receivable of $740,700 and an allowance for doubtful accounts of $37.700. On January 24,2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $6,300. On March 4, 2022, Tamarisk, Inc. receives payment of $6,300 in full from Madonna Inc. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation (To reverse write-off) (To record collection from Madonna) Debit Credit SUPPORT
On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $13,000. Required: Assume that on February 2, 2021, Extreme Fitness received a payment of $800 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the reversal of a customer account previously written off in the amount of $800. On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so…
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