48 Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method. a. Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000 b. Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000 c. Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000 d. Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000 Clear my choice Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method. a. Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000 b. Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000 c. Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000 d. Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000 Clear my choice
48 Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method. a. Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000 b. Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000 c. Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000 d. Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000 Clear my choice Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method. a. Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000 b. Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000 c. Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000 d. Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000 Clear my choice
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 8E: Estimation versus Direct Write-Off of Bad Debts Blunt Company makes credit sales of 21,000 during...
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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48
Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method.
a.
Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000
b.
Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000
c.
Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000
d.
Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000
Clear my choice
Assume that Oman Oil Marketing Company has credit sales of OMR 100,000 in 2019, of which OMR30,000 remains uncollected at December 31. The credit manager estimates that OMR 15,000 of these sales will prove uncollectible. From the following given options, identify the journal entry to be recorded in the books of Oman Oil Marketing company for writing of uncollectable accounts receivables under Allowance method.
a.
Dr Allowance for doubtful accounts OMR 30000 and Cr Bad debt expenses A/C OMR 30000
b.
Dr Bad debt expenses A/C OMR 15000 and Cr Accounts receivables OMR 15000
c.
Dr Bad debt expenses A/c OMR 15000 and Cr Allowance for doubtful accounts OMR 15000
d.
Dr Bad debt expenses A/cOMR 30000 and Cr Allowance for doubtful accounts OMR 30000
Clear my choice
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