What entry should National American Bank make to record this loss?
Q: In its December 31, 2022 statement of financial position, Reederei Company reported receivables of…
A: The question is related to collection of accounts receivables of a company amounting to P 250000…
Q: At December 31, 2021, Wynne Company reported Accounts Receivable of $45,000 and Allowance for…
A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…
Q: At the beginning of 2024, Best Heating & Air (BHA) has a balance of $26,000 in accounts receivable.…
A: The bad debt expense is treated differently under different methods as direct write off and…
Q: At the beginning of 2024, Best Heating & Air (BHA) has a balance of $25,800in accounts recelvable.…
A: In the accounting books of the business organizations the journal entry served as a record of its…
Q: On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co.…
A: An interest-bearing note is a financial instrument, typically a promissory note, that requires the…
Q: At December 31, 2019, one of TOCINO Company’s credit customers, HOTDOG Trading, is experiencing…
A: Introduction to Impairment loss Impairment loss generally occurs when a business asset suffers a…
Q: Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all…
A:
Q: On December 31, 2020, Short Co. is in financial difficulty and cannot pay a note due that day. It is…
A: When a company makes a payment against a note's principal debt, the amount that is recorded in the…
Q: Isbell Company’s December 31, 2024 unadjusted trial balance reports a $1,000 credit balance in…
A: The objective of the question is to determine the amount that Isbell should record as Bad Debt…
Q: Harmon, Inc. uses the aging of receivables method to account for the allowance of doubtful accounts…
A: Introduction:- A bad debt is a receivable that a customer will not pay to the company. Bad debt is…
Q: At the end of 2020, Oriole Company has accounts receivable of $912,000 and an allowance for doubtful…
A: A journal is the initial book of entries where financial transactions are recorded in chronological…
Q: Sanders Incorporated is a small brick manufacturer that uses the direct write-off method to account…
A: In case of direct write off method, there will be no allowance for estimated uncollectible account…
Q: Ervin Company uses the allowance method to account for uncollectible accounts receivable. The…
A: Bad Debt Expense is a ledger used to record uncollectible accounts written off during the year.…
Q: Ingalls Corporation is in the process of negotiating a loan for expansion purposes. The books and…
A: Net income (NI), often known as net earnings, is calculated as sales minus cost of goods sold,…
Q: 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and…
A: Formula: Net Realizable value = Accounts receivable balance - Allowance for doubtful accounts
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Allowance for doubtful accounts is the provision made by the company for the accounts which the…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Entry:- Accounts Receivable Sales (being sales made) Cash Accounts Receivable…
Q: Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: One company has a debit balance of $11325 in its allowance for doubtful accounts before any…
A: Generally allowance for doubtful accounts have a credit balance. Allowance for doubtful accounts…
Q: At December 31, 2024, Bacardi Company had $500,000 in Accounts Receivable and $20,000 in the…
A: To determine the net accounts receivable on the December 31, 2025, balance sheet for Bacardi…
Q: Company A had a debit balance in the Allowance for Doubtful Accounts of $72,000 as of 12/18/2024.…
A: Percentage of estimated uncollectibles = 7.6%Explanation:Balance as on 12/31/24 in Accounts…
Q: At December 31, 2012, Bloomfield company reported Accounts Receivable of $54,000 and Allowance for…
A: Net realizable value of accounts receiavbles = Gross accounts receivable - Allowance for doubtful…
Q: Assume that Kingbird Company has recently fallen into financial difficulties. By reviewing all…
A: When financial institutions like Banks are probable that a loan including principal or interest or a…
Q: Sam’s Auto Parts uses the aging method to estimate bad debt expense. At the end of 2018, the company…
A: : Bad debt is an expense that a business incurs once the repayment of credit previously extended to…
Q: The Tigers need to record a journal entry to estimate their bad debt expense for the period. The A/R…
A:
Q: Carla Vista Corp. currently has an issued debenture outstanding with Abbra Bank. The note has a…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Abbra Bank agrees to reduce the principal to $1.7 million and require interest only in the third…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: In 2020, Maxton Company sold its services on credit in the amount of $988,400. Total cash…
A: Bad debt expense is amount not able to recovered by entity or individual from its debtors.
Q: On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co.…
A: A journal entry is a record of the commercial transaction in the accounting system of a company.…
Q: 4) Erd and Kim Company operates in an industry that has a high rate of bad debts. On December 31,…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: Accounts Receivable Sheridan Company reinstatement of partial accounts receivable for amounts…
A: A provision for bad debts, often referred to as an allowance for doubtful accounts, is a…
Q: At the beginning of 2024, Best Heating & Air (BHA) has a balance of $25,200 in accounts receivable.…
A: Bad Debt expenses are expenses incurred to record uncollectible accounts. Accounts receivables that…
Q: Penn Co.'s allowance for uncollectible accounts was $200,000 at the end of 2019 and $180,000 at the…
A: Write off actual bad debts = Beginning balance of allowance for uncollectible accounts + bad debt…
Q: On December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected…
A: Accounts receivable indicates the amounts which company has not received from their debtors to whom…
Q: At January 1, 2024, NCI Industries, Incorporated was indebted to First Federal Bank under a…
A: A journal entry is a financial transaction recorded in a company's accounting system. It is the…
Q: On January 1, 2017, Cheyenne Company issued a $1,224,300, 5-year, zero-interest-bearing note to…
A: A note is a financial instrument which is issued to pay a certain sum of money at a specified date.…
Q: At the end of 2020, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful…
A: Uncollectible is the amount of money due that the company couldn't recover from its customers.
Q: Arlington Cycle Company began operations on January 1, 2020. The company reported the following…
A: BAD DEBT IS A DEBT WHICH IS UNCOLLECTIBLE AND IS WORTHLESS TO A CREDITOR . CALCULATION FOR BAD…
Q: Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot…
A: Under the direct method, the bad debt expense is recorded as and when it is incurred. The bad debt…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: 1. Determination of Journal entries for the 2021 write-offs and collection of previous written offs…
Q: Ervin Company uses the allowance method to account for uncollectible accounts receivable. The…
A: Accounts receivable are the money that is owed by the customer or buyer from the business who has…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: Raintree Cosmetic Company - Bad Debt Expense1. Summary Journal Entriesa) Write-offs:Bad Debt Expense…
Q: On December 31 , 2018 Nicholas Co. is in financial difficulty and cannot pay a note due that day .…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: On December 31, 2020, Flounder Company signed a $1,023,100 note to Culver Bank. The market interest…
A: Note receivable refers to a written promise for the amounts to be received within a stipulated…
Q: The following information is available for Sheridan Company: Allowance for Expected Credit Losses at…
A: According to the Convention of Conservatism, a business organization should not expect future…
Q: One company has a credit balance of $1530 in its allowance for doubtful accounts before any…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Assume that Waterway Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2020, one of Waterway’s creditors, the National American Bank, determined that Waterway would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. The loss is estimated to be $239,300.
What entry should National American Bank make to record this loss?
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- 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?Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $50,000 During 2024, credit sales were $1,850,000, cash collections from customers $1,930,000, and $59,000 in accounts receivable were written off. In addition, $5,000 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Percentage of Year- End Receivables in Group 65% 15 15 5 Percent Uncollectible 4% 10 30 50 $ 532,000 Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…The National Bank collected $3,000 including $300 interest on behalf of Z Inc. from one of its debtors on May 29, 2017. No entry for this collection was made by Z Inc. till May 31, 2017. How will Z Inc. have adjusted the collection of $3,000 by National Bank on a bank reconciliation prepared on May 31, 2017?
- On December 31, 2021, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,000 during 2021. An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible. Instructions Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions. You need not include dollar signs, but please do insert commas when needed. (a) Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. (b) Allowance for Doubtful Accounts has a debit balance of $730 before adjustment. (1) Percentage-of-receivables basis: (a) Bad Debt Expense..... Allowance for Doubtful Accounts... (b) Bad Debt Expense..... Allowance for Doubtful Accounts... 4Mckinney & Co. estimates its uncollectible accounts as a percentage of credit sales. Mckinney made credit sales of' $1,500,000 in 2019. Mckinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2017. one of Toni Braxton's creditors, the National American Bank, determined that Tonì Braxton would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. if the loan is estimated to be $225,000 what entry should National American Bank make to record this loss? Bad Debt Expense 225,000 Allowance for Doubtful Accounts 225,000 Bad Debt Expense 146,250 Allowance for Doubtful Accounts 146,250
- Question no. 02 (b) (07)Wilson Corporation uses an income statement approach to estimate credit losses. Its Accounts Receivable of $5,000,000 at the beginning of the period had a net realizable value of $4,225,000.During year 2019 company wrote off all of its uncollectible accounts. Of these accounts 35% were subsequently collected. Prepare the entries to record write off using allowance for doubtful account and direct write off approaches. Draft Entry to record the accounts receivable that were subsequently collected. Allowance for doubtful account is treated as an expense or as a liability in general journal. Give reasons for your answer. Moreover explain the treatment of these in balance sheet. What is the characteristic common to all current assets? Many retail stores regularly sell merchandise on installment plans, calling for payments over a period of 24 or 36 months. Do such receivables qualify as current assets? Explain.I NEED HELP FEELING IN THE BLANKS Information related to Novak Company for 2020 is summarized below. Total credit sales $2,575,000 Accounts receivable at December 31 853,000 Bad debts written off 34,900 (a)What amount of bad debt expense will Novak Company report if it uses the direct write-off method of accounting for bad debts? $________________ (b)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts credit balance of $3,700? $___________________ (c)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts debit balance of $3,700? $__________________On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $69,000 and $1,025, respectively. During 2022, Larry's wrote off $1,850 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,100 at December 31, 2022. Bad debt expense for 2022 would be:
- On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Service Revenue Discount on Notes Receivable Debit…12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that $17,000 in accounts receivable would be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?The annual report for Fabeck Finishing Corporation contained the following information: (in millions) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net 2021 $673 32 $641 Assume that accounts receivable write-offs amounted to $13 during 2021 and $3 during 2020, and that Fabeck Finishing did not record any recoveries. Bad Debt Expense 2020 $735 31 $704 Required: Determine the Bad Debt Expense for 2021 based on the above facts. (Enter your answer in millions.) million
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)