The following information extracted from the accounting records of the South Co. at the beginning of 2020 : Accounts Receivable $ 63000 , Allowance for Doubtful Accounts 1400 ( credit ) during 2017 : 1- sales on credit amounted to $ 575000 2- $ 557400 was collected on receivables 3- $ 2600 of receivables were written off as uncollectible . On December 31 , 2017 , South Co estimates its bad debts to be 4 % of the gross accounts receivable balance From the previous information put true or false
The following information extracted from the accounting records of the South Co. at the beginning of 2020 : Accounts Receivable $ 63000 , Allowance for Doubtful Accounts 1400 ( credit ) during 2017 : 1- sales on credit amounted to $ 575000 2- $ 557400 was collected on receivables 3- $ 2600 of receivables were written off as uncollectible . On December 31 , 2017 , South Co estimates its bad debts to be 4 % of the gross accounts receivable balance From the previous information put true or false
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 9E: Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton...
Related questions
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.
Question
The following information extracted from the accounting records of the South Co. at the beginning of 2020 : Accounts Receivable $ 63000 , Allowance for Doubtful Accounts 1400 ( credit ) during 2017 : 1- sales on credit amounted to $ 575000 2- $ 557400 was collected on receivables 3- $ 2600 of receivables were written off as uncollectible . On December 31 , 2017 , South Co estimates its bad debts to be 4 % of the gross accounts receivable balance From the previous information put true or false
Transcribed Image Text:Q4| The following information is
extracted from the accounting records
of the South Co. at the beginning of
2020: Accounts Receivable $63000,
Allowance for Doubtful Accounts 1400
(credit) during 2017: 1- sales on credit
amounted to $575000 2- $557400 was
collected on receivables 3- $2600 of
receivables were written off as
uncollectible. On December 31, 2017,
South Co estimates its bad debts to be
4% of the gross accounts receivable
balance From the previous information
:put true or false
the journal entry necessary to record-1
South Co for sales on credit amounted
to $575000: Cash 575000 Sales
575000
true
false O
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub