Allowance method It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period. Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Write-off: Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible. To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

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Answer 1

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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During its first year, Maple Corp. showed a $20 per-unit profit under absorption costing but would have reported a total profit of $18,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 60% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $220,000?

Answer 2

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 3

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 4

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 5

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 6

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

Answer 7

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

Answer 8

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 9

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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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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To reinstate: The account of Person RE and record the collection of cash on account.

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