The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct journal entry to record this information was entered in the books in July 20X2. In August 20X2 the insurance company sent a cheque for $6,500. The journal entry to record this is: Dr Cr $ $ A Bank 6,500 Sundry receivable 6,500 B Bank 6,500 Sundry receivable 6,000 Disposal of non-current assets account 500 C Bank 500 Disposal of non-current assets account 500 D Bank 500 Sundry receivable 500
The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct journal entry to record this information was entered in the books in July 20X2. In August 20X2 the insurance company sent a cheque for $6,500. The journal entry to record this is: Dr Cr $ $ A Bank 6,500 Sundry receivable 6,500 B Bank 6,500 Sundry receivable 6,000 Disposal of non-current assets account 500 C Bank 500 Disposal of non-current assets account 500 D Bank 500 Sundry receivable 500
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 16RE
Related questions
Question
100%
The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the
company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct
company sent a cheque for $6,500.
The journal entry to record this is:
Dr Cr
$ $
A Bank 6,500
Sundry receivable 6,500
B Bank 6,500
Sundry receivable 6,000
Disposal of non-current assets account 500
C Bank 500
Disposal of non-current assets account 500
D Bank 500
Sundry receivable 500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage