If after sometime, I haven't paid yet my accounts payable to you, and you don't expect that I can pay you, you will recognize an expense called bad debt expense. Is this either true or false? please explain thanks.
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- You have just received notice that a customer of yours with an account receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to debit Allowance for Doubtful Accounts and credit Bad Debt Expense. debit Bad Debt Expense and credit Allowance for Doubtful Accounts. debit Allowance for Doubtful Accounts and credit Accounts Receivable. debit Bad Debt Expense and credit Accounts Receivable.Allowance for Bad Debts is what kind of account? Fill in the blank???????????When would you consider a customer debt an uncollectible receivable? A. The debt is older than one year. B. You've been unable to contact them to collect. C. The debt is associated with a non-inventory item. D. You need to match income with expenses.
- Which one of the following statements concerning bad debt expenses is correct? Select one: a. When you write off an accounts receivable, you debit bad debt expense and credit accounts receivable. b. You record bad debt expense when individual accounts receivable becomes uncollectible. c. Under the percentage of receivables method, bad debt expense is the year-end receivables multiplied by the % of uncollectible accounts. d. When the allowance method is used, bad debt expense is recorded before the accounts are written off.Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.I need to understand how to report bad debts and record the effects on a financial statement. This is a follow up to my last accounting question.
- Which of the following statements is false? A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.Which of the following is the correct journal entry to write off a debtor who has been declared as bankrupt? a. Debit - Bad debt ExpensesCredit - Accounts receivable b. Debit- Accounts ReceivableCredit- Bad debt expense c. Debit- Accounts receivableCredit- Allowance for doubtful debts d. Debit - Doubtful debts expensesCredit- Accounts receivableWhich of the following statements is correct about credit period? A. If a customer purchases goods within the credit period, a cash discount will be allowed to the customer B. If a customer settles the payment within the credit period, a cash discount will be allowed to the customer C. It refers to the period in which customers must settle their debts due D. It refers to the period in which customers need to settle one-third of the debts in order to avoid further interests charged
- When using the allowance method for accounting for bad debts, accounts receivable is reported on the balance sheet at the expected net realizable value. When a particular receivable from a customer ultimately is determined to be uncollectible and is written off, the recording of this event will Group of answer choices A)decrease the net realizable value of the accounts receivable. B)have an effect that is not determinable from the information given. C)increase the net realizable value of the accounts receivable. D)decrease total current assets. e)None of the aboveWhen writing off a customer's account using the allowance method: A. Bad Debts Expense is increased with a debit B. The customer's account is decreased with a debit C. The Allowance for Bad Debts account is decreased with a debit D. Bad Debts Expense is increased with a creditHello, This question is asking to prepare an adjusted trial balance. I'm not sure where income tax payable, rent payable, and retained earnings go on the trial balance. Also not sure what to do about the bank loan payable for 2024. Thanks