On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112.500 would be uncollectible. Loudoun uses the allowance method. On February 15,Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.Which of the following correctly states the effect of Loudoun's recording the restablishment of the receivable on April 4, Year 2?Cash蛋蛋蛋白NAa.b. NAC. NAd.NAAssetsMultiple Choice+ Net Realizable Value -1,050 (1,050)(1,050)(1,050)1,050 (1,050)Option AOptionBalance SheetOption CLiabilities +AccountsPayable +NA+NA(1,050)1,050+Stockholders' EquityRetainedearningsNA(1,050)NANACommonStockNANANA(1,050)RevenueNA(1,050)NANAIncome StatementExpensesNANANA1,050.=Net IncomeNA(1,050)NA(1,050)Statement of CashFlowsNANANANA

The account receivables is the current assets for the business. It means those customers to whom…

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112.500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050 Which of the following correctly states the effect of Loudoun's recording the reestablishment of the receivable on April 4, Year 2? a.. b. C. d. 范 NA NA NA NA Assets Cash Net Realizable Value - Payable NA NA Multiple Choice 1,050 (1,050) (1,050) (1,050) 1,050 (1,050) Option A Option 9 Balance Sheet Option C Liabilities. Accounts (1,050) 1,050 Stockholders' Equity Retained earnings NA Common Stock NA NA NA (1,050) (1,050) NA NA Revenue NA (1,050) NA NA Income Statement Expenses NA NA NA 1,050. = Net Income NA (1,050) NA (1,050) Statement of Cash Flows NA 55555 NA NA NA

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112.500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050 Which of the following correctly states the effect of Loudoun's recording the reestablishment of the receivable on April 4, Year 2? a.. b. C. d. 范 NA NA NA NA Assets Cash Net Realizable Value - Payable NA NA Multiple Choice 1,050 (1,050) (1,050) (1,050) 1,050 (1,050) Option A Option 9 Balance Sheet Option C Liabilities. Accounts (1,050) 1,050 Stockholders' Equity Retained earnings NA Common Stock NA NA NA (1,050) (1,050) NA NA Revenue NA (1,050) NA NA Income Statement Expenses NA NA NA 1,050. = Net Income NA (1,050) NA (1,050) Statement of Cash Flows NA 55555 NA NA NA

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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The accounts receivable balance for Renue Spa at December 31, Year 1, was $61,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. During Year 2, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $215,000, and cash collections from receivables were $218,000. Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period.RequiredRecord the transactions in general journal form and post to T-accounts.Based on the preceding information, compute (after year-end adjustment):(1) Balance of allowance for doubtful accounts at December 31, Year 2.(2) Balance of accounts receivable at December 31, Year 2.(3) Net realizable value of accounts receivable at December 31, Year 2.What amount of uncollectible accounts expense will Renue report for Year…
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? A. B. ܫ C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option B Option D Option C Option A Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense ΝΑ ΝΑ (1,050) ΝΑ = Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA
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The accounts receivable balance for Renue Spa at December 31, Year 1, was $89,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. During Year 2, $2,300 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $100 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $214,000, and cash collections from receivables were $215,963. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the per Required Record the transactions in general journal form and post to T-accounts. Based on the preceding information, compute (after year-end adjustment): (1) Balance of allowance for doubtful accounts at December 31, Year 2. (2) Balance of accounts receivable at December 31, Year 2. (3) Net realizable value of accounts receivable at December 31, Year 2. 3.What amount of uncollectible accounts expense will Renue…
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