2 A/R.BALANCE@ 12/31/2008 5,000,000 MAKE THE REQUIRED ENTRIES TO SET UP THE RESERVE FOR EACH CASE RESERVE FOR BAD DEBT IS 1% OF THE ENDING A/R BALANCE CASE 1 ALLOW FOR DOUBIFUL ACCTS BAL e 12/31/200g 0 CASE 2 ALLOW FOR DOUBTFUL ACCTS BAL @ 12/31/2008 40,000 CREDIT CASE 3 ALLOW FOR DOUBTFUL ACCTS BAL@ 12/31/2008 10,000 DEBIT 3 A COMPANY WENT BANKRUPT AND OWED $18,000 TO ABC. MAKE THE ENTRY TO WRITE OFF THE$18,000 USING THE ALLOWANCE METHOD). で

2 A/R.BALANCE@ 12/31/2008 5,000,000 MAKE THE REQUIRED ENTRIES TO SET UP THE RESERVE FOR EACH CASE RESERVE FOR BAD DEBT IS 1% OF THE ENDING A/R BALANCE CASE 1 ALLOW FOR DOUBIFUL ACCTS BAL e 12/31/200g 0 CASE 2 ALLOW FOR DOUBTFUL ACCTS BAL @ 12/31/2008 40,000 CREDIT CASE 3 ALLOW FOR DOUBTFUL ACCTS BAL@ 12/31/2008 10,000 DEBIT 3 A COMPANY WENT BANKRUPT AND OWED $18,000 TO ABC. MAKE THE ENTRY TO WRITE OFF THE$18,000 USING THE ALLOWANCE METHOD). で

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 7MC: Balloons Plus computes bad debt based on the allowance method. They determine their current years...

See similar textbooks

Similar questions

D borrowed from XYZ Bank P2,000,000.00 payableat the end of 5 years. Before maturity, anextraordinary deflation supervened causing the valueof the debt to rise to P5,000,000.00 on the date ofmaturity. On due date, B must pay XYZ Bank:a. P2,000,000.00b. P5,000,000.00c. P800,000.00d. P20,000,000.00
2. A 216-day, 6% promissory note with a face value RM6000 was discounted 76 days before the maturity date at 4.5% discount rate. If the date of the note was 4h June 2020. Using Banker's Rule. No use excel. Calculate d) The amount of proceeds (RM6154.02) e) The amount of discount (RM59.02)
1. Agogo Trading has the following account balances as at 30 June 2019.RMAccount Receivable 200,000Provision for doubtful debt 6,000On 30 June 2019, the following adjustment have to be made:i. Debts of RM500 are to be written off as badii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required:For the year ending 30 June 2019 show the:a) Provision for doubtful debts accountb) Statement of Profit or Loss (extract)c) Statement of Financial Position (extract) 2. The following is a summary of account receivable and related accounts for threeyears for Tommy Enterprise the financial year ends 30 April each year.Year ended 30 AprilAccount receivable as at 30 April (before writing off bad debts)RMBad debts written offRMProvision for doubtful debt2017 70,000 Nil 2%2018 61,000 1,000 2%2019 83,000…
The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance. please show each working and journal entries
Credit sales (for year) $965,000Credit sales returns and allowances (for year) 82,000Accounts receivable (30 June 2020) 302,560Allowance for doubtful debts (30 June 2020) 1,200 CR Balance % estimated uncollectableAccounts not yet due $ 96,450 1%Accounts overdue:10-30 days $ 31,230 5% 31-60 days $ 22,760 10% 61-120 days $ 16,540 30%121 days and over $ 9,372 60% Total $ 176,352 Using the data in the tables above, present the general journal adjusting entries to provide for bad debts expense for the year ended 30 June 2020 under each of the two allowance methods: (i) Percentage of net…
At the end of the fiscal year, Accounts Receivable has a balance of R100 000 and allowance for doubtful accounts has a balance of R7 000. The expected net realizable value of the accounts receivable is________. Select one: a. R107 000 b. R7 000 c. R93 000 d. R100 000
J-Hope Company experiences financial difficulties and began defaulting on the loan to International Bank. The loan receivable has a carrying amount of P3,300,000 including the accrued interest of P300,000 on December 31, 2019. International Bank projected the cash flows from the loan on December 31, 2019: Date of cash flow Amount projected PV of 1 December 31, 2020 P500,000 Year 1 0.8929 December 31, 2021 1,000,000 Year 2 0.7972 December 31, 2022 1,500,000 Year 3 0.7118 The prevailing rate is 12% How much is the impairment loss?
Apply derecognition criteria of IFRS 9 and U.S. GAAP to Company B’s situation below: Company B sells a portfolio of 100 short-term receivables to a bank for cash by guaranteeing to buy back first 20 defaulted receivables at the amount due from the debtors. The historical default rates on such receivables are up to 10%. The customers are notified of the sale and pay directly to the bank. The bank may subsequently sell or pledge these receivables. Under IFRS, should Company B derecognize this portfolio of short-term receivables? Why? Under U.S. GAAP, should Company B derecognize this portfolio of short-term receivables? Why?
Pierre Company has a 12% note payable with a carryingvalue of $20,000. Pierre applies the fair value option tothis note. Given an increase in market interest rates, thefair value of the note is $22,600. Prepare the entry torecord the fair value option for this note, assuming (a) nochange in credit risk, and (b) the change is due to achange in credit risk.
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debt expense for that period? Question 13 options: 1) $2,000 2) $13,000 3) $15,000 4) $17,000
3. The following balances have been taken from the unadjusted trial balance of a tradingorganization for the year ended Dec. 31, 2020:Sales (All on credit) Rs. 650,000Sales Return and Allowance (All from credit sales) 20,000Sales Discount 10,000Accounts Receivable 430,000Allowance for bad debt (Cr.) 2000Required:Record and close bad debt expense for the year ended Dec. 31, 2020 under each of the followingassumptions separately:a. Allowance for bad debt was estimated @ 10% of accounts receivable.b. Bad debt expense was estimated @ 1.5% of net credit sales.
Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000