MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)

5th Edition

ISBN: 9780133877281

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 8, Problem 8.28AP

Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet

At September 30, 2016, the accounts of Park Terrace Medical Center (PTMC) include the following:

Accounts Receivable	$ 143,000
Allowance for Bad Debts (credit balance)	3,300

During the last quarter of 2016, PTMC completed the following selected transactions:

Dec. 28	Wrote off accounts receivable as uncollectible: Silver, Co., $1,200; Oscar Wells, $1,000; and Rain, Inc., $600
31	Recorded bad debts expense based on the aging of accounts receivable, as follows:

Chapter 8, Problem 8.28AP, Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and

Requirements

1. Journalize the transactions.

2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance.

3. Show how Park Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 8, Problem 8.27AP

Chapter 8, Problem 8.29AP

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Chapter 8 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)

Ch. 8 - Prob. 1QC Ch. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...

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Solution Summary: The author explains the allowance method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

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Chapter 8 Solutions