QUESTIONS 11.9 Jupiter Co has been notified that a customer has been declared bankrupt. The company had previously made an allowance for this debt. Which of the following is the correct double entry to account for thiS new information? DEBIT CREDIT Irrecoverable debts Receivables Receivables Irrecoverable debts Allowance for receivables Receivables Receivables Allowance for receivables In inoa ABCD

QUESTIONS 11.9 Jupiter Co has been notified that a customer has been declared bankrupt. The company had previously made an allowance for this debt. Which of the following is the correct double entry to account for thiS new information? DEBIT CREDIT Irrecoverable debts Receivables Receivables Irrecoverable debts Allowance for receivables Receivables Receivables Allowance for receivables In inoa ABCD

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11EB: Outpost Designs uses the balance sheet aging method to account for uncollectible debt on...

See similar textbooks

Similar questions

Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Outpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
etlock, Inc. unadjusted trial balance includes the following balances (assume normal balances): • Accounts receivable $1810000 • Allowance for doubtful accounts $37300 Bad debts are estimated to be 10% of outstanding receivables. What amount of bad debt expense will the company record? $141570 $143700 $186700 $181330
Jongwe Ltd maintains a provision for doubtful debts at 2% of trade receivables. The balances in the ledger accounts as at 30 April 2021 were as follows: Provision for doubtful debts as at 1st May 2020 £786 Trade receivables as at 30th April 2021 £33,450 One of the debtors has been declared bankrupt. As the accountant for Pinto Ltd you have realised that the trade receivable amounting to £1,350 will not be recovered and concluded that this should be written off as an irrecoverable debt. Required: Prepare the provision for doubtful debts account. Balance the account and bring the balance down to 1st May 2021. Explain how this transaction would affect the profit or loss of Pinto Ltd in the current accounting period.
JD Company decided on January 2, 2022, to effect the change in accounting policies in relation to bad debts as follows: Bad debt percentage from 2% to 10% of accounts receivables. JD Company's receivable balance at December 31, 2022 was P 960,000, and the allowance for bad debt account has a debit balance of P 7,000. What is the 2022 carrying value of the accounts receivable?
Blossom Company unadjusted trial balance includes the following balances (assume normal balances): • Accounts Receivable $1130000 • Allowances for Doubtful Accounts $21400 Bad debts are estimated to be 5% of outstanding receivables. What amount of bad debt expense will the company record? $56500 $35100 $33822 $57678
At December 31, 2021, Cullumber Imports reported this information on its balance sheet. Accounts receivable: $565700 Less: Allowance for doubtful accounts: $38000 During 2022, the company had the following transactions related to receivables. 1. Sales on account: 2560000 2. Sales on returns and allowances: 50000 3. Collections of accounts receivable: 2260000 4. Write-offs of accounts receivable deemed uncollectible: 42400 5. Recovery of bad debts previously written off as uncollectible: 16000 Compute the accounts receivable turnover.
JD Company decided on January 2, 2022 to effect the change in accounting policies in relation to bad debts as follows: Bad debt percentage rom 2% to 10% of accounts receivable. JD Company's receivable balance at December 31, 2022 was 960,000, and the allowance for bad debt account has a debit balance of P7,000. What is the 2022 carrying value of the accounts receivable? a. 857,000 b. 960,000 c. 878,000 d. 864,000
Harmon, Inc. uses the aging of receivables method to account for the allowance of doubtful accounts and the recording of bad debt expense. Below is the aging of the accounts receivable along with the associated estimation of uncollectibility. a. Calculate the amount estimated to be uncollectible at the end of 2021. b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. Harmon, Inc - Accounts Receivable Aging Balances - December 31, 2021 Total 1-30 Days 31-60 Days 61-90 Days 91-120 Days…
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $16700. If the balance of the Allowance for Doubtful Accounts is $2070 credit before adjustment, what is the amount of bad debt expense for that period? $16700 $2070 $14630 $18770
2. DEC has the following client account debit balances as of 31/12/2018: Client K 4000€, Client L 9000€, Client M: 6000€ and it is estimated that these claims will not be able to be collected the following amounts from: Client K 400€, Client L: 900€, and Client M: 800€. On 30/3/2019 received from Client K 3000€, Client L 7 000€, Client M: 5000€. On 31/12/2020 because clients L and M went bankrupt it was estimated that no part of the receivables can be collected. On 01.05.2022, € 600 was collected from the bankruptcy estate of client L. It is requested to make the relevant calendar entries of the above accounting events for each of the cases.
Please see attached. Statement 1. The amount of bad debts expense in 2022 is P124,560 Statement 2: The balance of allowance for bad debts as of December 31, 2022 is P15.670 Only statement 2 is true Both statements are false Both statements are true Only statement 1 is true