Required:(a) Prepare journal entries to record the impairment loss of receivable in 2021 under Statement of Financial Position approach. (b) Prepare partial Statement of Financial Positions to show the accounts receivables at 31 December 2021. Part IIThe trial balance as at 31 December 2021 of Owen Company included the following accounts:Accounts receivable at 31 December 2021Allowance for impairment$165,000$5,300 (Dr)At the end of the year, an aging of the accounts receivable indicated the estimated uncollectibleamount for accounts receivables was $26,400. The company adjusts its account annually.

Accounts receivables are those customer accounts to whom credit sales has been made and amount has…

Required: (a) Prepare journal entries to record the impairment loss of receivable in 2021 under Statement of Financial Position approach. (b) Prepare partial Statement of Financial Positions to show the accounts receivables at 31 December 2021.

Required: (a) Prepare journal entries to record the impairment loss of receivable in 2021 under Statement of Financial Position approach. (b) Prepare partial Statement of Financial Positions to show the accounts receivables at 31 December 2021.

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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Using direct method, ZARA company decided on December 2, 2019 to write-off 370$ that owned to HH company Ltd. The journal entry to record this transaction is O a. Bad debt expense 370 Account receivable 370 O b. Bad debt expense 370 Cash 370 Oc Bad debt expense 370 C. Allowance for doubtful account 370 O d. Cash370 Bad debt expense 370
Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year.
The following transactions involving intangible assets of Oriole Corporation occurred on or near December 31, 2020. 1. Minton paid Grand Company $440,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Oriole is in business. Oriole spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 2. In January, 2021, Oriole's application for a patent (#2 above) was granted. Legal and registration costs incurred were $249,900. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. Oriole incurred $180,800 in successfully defending one of its patents in an infringement suit. The patent expires during 3. 4. December, 2024. Oriole incurred $470,400 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $241,920, is…
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period
A company reports the following amounts at the end of 2024 (before adjustment). Credit Sales for 2024 Accounts Receivable, December 31, 2024 Allowance for Uncollectible Accounts, December 31, 2024 Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 1% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the…
Questions: a. The net realizable value of accounts receivable as of December 31, 2023 is? b. Your proposed adjusting journal entry to correct the balance of allowance for bad debts would include a net debit or credit of? (just indicate the amount)
Events that occur after the December 31, 2026 balance sheet date, but before the balance sheet is issued in 2027, and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be used to record an adjustment to Bad Debt Expense for the year ending December 31, 2026. discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report. disclosed only in the Notes to the Financial Statements. used to record an adjustment directly to the Retained Earnings account.
The following information is available for Sheridan Company: Allowance for Expected Credit Losses at December 31, 2023 Credit Sales during 2024 Accounts Receivable deemed worthless and written off during 2024 $7980 O $4788 $3762 $8550 O $84360 307800 3192 As a result of a review and aging of Accounts Receivable in early January 2025, it was determined that an Allowance for Expected Credit Losses balance of $8550 is required at December 31, 2024. What amount should Sheridan record as loss on impairment for calendar 2024?
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020: Accounts Receivable (debit balance)................................................. $1,240,250 Allowance for Doubtful Accounts (credit balance)....................................... 19,220 The following transactions are for the year 2020: Sales for the year were $8,100,000, of which 60% was on credit, and sales returns, all on credit, were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson wrote off $62,500 in receivables, of which half was later recovered and collected. The company’s credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible. Required: Calculate the bad debt expense for the year and record the appropriate journal entry.
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At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
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