SURVEY OF ACCOUNTING W/CODE
5th Edition
ISBN: 9781260716252
Author: Edmonds
Publisher: MCG
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Chapter 9, Problem 5E
To determine
Explain the effect of the write-off of accounts receivable on Corporation S’s
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Problem 6
Tantrum Company provided the following information in relation to accounts receivable at year-end:
Days Outstanding
% Uncollectible
Estimated Amount
1,200,000
0-60
1%
2%
61-120
900,000
Over 120
1,000,000
6%
During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had
been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was
P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the
current year?
HOMEWORK 8 - CHAPTER 8 Question 9 of 15 -1 Current Attempt in rrogress Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $161,000 Allowance for doubtful accounts (beginning balance) ,11,300 Net credit sales ,942,000 Collections 912,000 Write-offs of accounts receivable 5,200 Collections of accounts previously written off 2,200 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. (a) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
Problem 8-12 (IAA)
31:
Accounts receivable-unassigned
Accounts receivable-assigned
Allowance for doubtful accounts-January 1
Receivable from factor
Note payable-bank
1,000,000
300,000
30,000
40,000
240,000
During the current year, the entity found itself in financial
distress and decided to resort to receivable financing.
On June 30, the entity factored P200,000 of accounts
receivable to a finance entity.
The finance entity charged a factoring fee of 5% of the
accounts factored and withheld 20% of the amount factored.
On December 31, the entity assigned P300,000 of accounts
receivable to a bank under a nonnotification basis.
The bank advanced 80% less a service fee of 5% of the accounts
assigned. The entity signed a promissory note for the loan.
On December 31, it is estimated that 5% of the outstanding
accounts receivable may prove uncollectible.
Required:
1. Prepare journal entry to record the factoring.
2. Prepare journal entry to record the assignment.
3. Prepare journal entry to…
Chapter 9 Solutions
SURVEY OF ACCOUNTING W/CODE
Ch. 9 - 1. Why are ratios and trends used in financial...Ch. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - 4. What is the significance of inventory turnover,...Ch. 9 - 5. What is the difference between the current...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - 9. What are some limitations of the earnings per...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Exercise 9-1 Horizontal analysis Winthrop...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Comprehensive analysis The December 31, 2019,...Ch. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Ratio analysis Compute the specified ratios using...Ch. 9 - Prob. 14ECh. 9 - LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Problem 9-21 Ratio analysis Selected data for...Ch. 9 - Prob. 22PCh. 9 - Problem 9-23 Ratio analysis The following...Ch. 9 - Prob. 24PCh. 9 - Prob. 1ATCCh. 9 - Prob. 3ATCCh. 9 - ATC 9-5 Ethical Dilemma Making the ratios look...
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Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License