The balance sheet of Omni, Inc., at the end of last year included the following items: Notes receivable from customers Accrued Interest on notes receivable... $ 540,000 10,800 Accounts recelvable.. Less: Allowance for doubtful accounts..... 2,268,000 54,000 You are to récord the following events of the current year in general journal en- tries: a Accounts receivable of $51,840 are vritten off as uncollectible. b Acustomer's note for $14,850, on which interest of $810 has been accrued in the accounts, is deemed uncollectible, and both balances are written off against the Allowance for Doubtful Accounts. An account receivable for $7,020 previously written off is collected. d Aging of accounts receivable at the end of the current year indicates a need for an $81,000 allowance to cover possible failure to collect accounts currently out- standing. (Consider the effect of entries for a, b, and c on the amount of the Allowance for Doubtful Accounts.)

The balance sheet of Omni, Inc., at the end of last year included the following items: Notes receivable from customers Accrued Interest on notes receivable... $ 540,000 10,800 Accounts recelvable.. Less: Allowance for doubtful accounts..... 2,268,000 54,000 You are to récord the following events of the current year in general journal en- tries: a Accounts receivable of $51,840 are vritten off as uncollectible. b Acustomer's note for $14,850, on which interest of $810 has been accrued in the accounts, is deemed uncollectible, and both balances are written off against the Allowance for Doubtful Accounts. An account receivable for $7,020 previously written off is collected. d Aging of accounts receivable at the end of the current year indicates a need for an $81,000 allowance to cover possible failure to collect accounts currently out- standing. (Consider the effect of entries for a, b, and c on the amount of the Allowance for Doubtful Accounts.)

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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