Direct write-off method: This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable . Under this method, accounts would be written off only when the receivables from a customer remain uncollectible. Allowance method: It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account. To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

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Answer 1

Question

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

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The total factory overhead for Delta Manufacturing is budgeted at $750,000 for the year and allocated between two departments: Processing ($500,000) and Finishing ($250,000). Delta produces two products: Desks and Chairs. Each Desk requires 4 direct labor hours in Processing and 2 direct labor hours in Finishing. Each Chair requires 3 direct labor hours in Processing and 4 direct labor hours in Finishing. The company plans to produce 5,000 units of each product during the year. Determine the total number of budgeted direct labor hours for the year in the Finishing Department. A. 30,000 dlh B. 25,000 dlh C. 20,000 dlh D. 35,000 dlh

Hello tutor please provide this question solution general accounting

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Answer 2

Question

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

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Answer 3

Question

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

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Answer 5

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

Answer 6

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

Answer 7

Chapter 8, Problem 8.5EX

A.

To determine

Direct write-off method:

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under direct-write off method.

Answer 8

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

Answer 9

B.

To determine

To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - Prob. 8DQ Ch. 8 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 8 - The note receivable dishonored in Discussion...

Solution Summary: The author explains the direct write-off method, which does not make an allowance or estimation for uncollectible accounts.

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To record: The journal entry in the books of Company C, to write-off the account of Company WT, under allowance method.

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