2) Moonlight Company wrote off the account of one of its customers, X, in 2018 for $500. On January 21, 2019, X unexpectedly repaid his account in full. The company uses the direct write off method to account for uncollectible receivables Journalize the entries required for Moonlight Company on January 21, 2019.
Q: Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000…
A: Bad Debt means expenses related to those accounts receivables, for which it is estimated that due…
Q: Theta Company determines that a $6,300 account receivable from CorpCo is uncollectible and writes…
A: Solution: Under direct write method, Account is written off directly to income statement.
Q: On Aug 1, ABC received a 60 day, 10% note for 12,000 from McAnn’s Auto in settlement of an existing…
A: Date Accounts and Explanation Debit Credit Aug. 1 Notes Receivable 12,000…
Q: At the end of 2021, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Ace Company uses the Aging of receivables method to account for uncollectible accounts. The company…
A: Bad debt expense is recognized for the loss of accounts receivable as some of the customers may not…
Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the…
A: Receivables, loans, and other obligations that are likely to be paid are referred to as…
Q: On February 1, 2022, Hoya Kentinana Co. owed money to it’s supplier, the money tree, Inc. in the…
A: Answer are as follows
Q: Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What…
A: Principal amount = $ 28000 Coupon rate = 6% Time frame = 1 month period
Q: At the end of 2021, Sage Hill Co. has accounts receivable of $704,700 and an allowance for doubtful…
A: Journal: Recording of a business transactions in a chronological order.
Q: Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: At the end of 2021, Kingbird Co. has accounts receivable of $691,500 and an allowance for doubtful…
A: (a)Entry to record the write off.
Q: Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO…
A: Answer: b- (1&iii)
Q: Can you explain why the notes payable amount $250,000 that is due at December 31st, 2021 is not…
A: Introduction: While preparing classified balance sheet, all accounts are presented under classified…
Q: ce Company uses the Aging of receivables method to account for uncollectible accounts. The company…
A: Dear student , You asked multiple questions…
Q: Magrath Company has an operating cycle of less than one year and provides credit terms for all of…
A: Receivables: Receivables refer to an amount to be received in future. Receivables are classified…
Q: Last week, I paid my balance in full with a personal cheque. However, the enclosed statement shows…
A: The balance of the account cannot be 0. The disparity is due to the fact that the cheque for the…
Q: on January 1, 2021, dependable, Inc borrows $10,000 from a local bank by signing a 6% note July 1,…
A: The note refers to the amount that the company or individual owned from the bank or suppliers by…
Q: The following transactions took place during 2020 for Webb Industries.
A: Many organisations follow Allowance Method for writing off Accounts Receivable…
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: Solution: As per given - From the following particulars of Al Zahra LLC for the year…
Q: Judy Smith owed the Flower Company $3,200 on account by February 25. After several attempts to the…
A:
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
Q: On December 31, 2021, when its Allowance for Doubtful Accounts had a zero balance, Pina Co.…
A: Solution: journal entries on December 31, 2021, May 11, 2022, and June 12, 2022 are as under:
Q: Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15,…
A: Accounts receivable :— Account receivable are shown in the Asset side of the balance sheet. Account…
Q: S9-3 Applying the direct write-off method to account for uncollectibles Shawna Valley is an attorney…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: At December 31, 2018, Oriole Company reported the following information on its balance sheet.…
A: Accounts receivable turnover ratio indicates how many times the customers pay to the firm in an…
Q: The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31,…
A: Introduction Bad Debt Expense: Bad Debts are accounts receivable that a company does not expect to…
Q: Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO…
A: The question is related to Accounts Receivables which were written off as bad debts earlier but on…
Q: Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: (a)Record the following events in 2008. Aug. Determined that the account of Henry Hum for $2,500 is…
A: 1. Allowance Method - Under Allowance Method company makes the provision for allowance for doubtful…
Q: At December 31, 2019, Blue Spruce Corp. Company had a credit balance of $17,000 in Allowance for…
A: Beginning , Allowance for doubtful debts ( Credit balance ) = $ 17000 Ending , Allowance for…
Q: Gate City Cycles had trouble collecting its account receivable from Sue Ann Noel. On June 19, 2018,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Maria Rivera, owner of Rivera Pharmacy, uses the direct write off method in accounting for…
A: There are two methods of reporting accounts receivables and bad debt expenses. 1) Allowance method;…
Q: Ace Company uses the Aging of receivables method to account for uncollectible accounts. The company…
A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…
Q: What amount should be reported as doubtful accounts expense for 2019? Answer: 300,000 2. What…
A: NRV stands for Net Realizable value which is defined as the amount of the cash that the business…
Q: On Jan.1, 2016, Diana opened an account with a P50000 deposit. On Jan.1, 2017, she withdraws P25000…
A: Let 2016 be year 0. CF0 = P 50000 CF1 = - P 25000 CF3 = P 75000 r = 7.5% We need to find the future…
Q: on january 1, cooper company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: Write off the $3,890 of accounts receivable due from Jacob Marley. If an amount box does not require…
A: The direct-write off method mean writing off a bad debt expense directly against the corresponding…
Q: Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write off of the RO…
A: When a bad debt is incurred Allowance for doubtful debt is debited. Accounts receivable is…
Q: Nash's Trading Post, LLC receives a $9000, 3-month, 6% promissory note from Concord Corporation in…
A: Note Receivable : Note receivable is an instrument gives the holder right to receive the amount…
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: At December 31, 2021, Larkspur Company had a credit balance of $16,200 in Allowance for Doubtful…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: On December 31, 2020, Hoosier Inc. establishes an allowance for doubtful accounts of 3% of its…
A: Net realizable value (NRV) of accounts receivable = Accounts receivable - Allowance for doubtful…
Q: Bramble Supply Co. has the following transactions related to notes receivable during the last 2…
A: Interest accrued on Nov. 1 notes = 13,200 x 10% x 2/12 = $220 Interest accrued on Dec. 11 notes =…
Q: Following are selected transactions of Youth Inc. during December 2016. Dec 1: Youth accepted a…
A: Journal entries (JE) refers to the transactions of the company are recorded in the books of the…
Q: On January 15, 2020, XYZ Company received a two-month, 4%, $7,000 note from ABC Company for the…
A: When the note value is said to be uncollectible, it is called as a dishonored note and entry for…
Q: The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31,…
A: Percentage of Uncollectible Method: Under this method, an amount of uncollectible is calculated on…
Q: At the end of 2020, Crane Co. has accounts receivable of $740,200 and an allowance for doubtful…
A: Accounts receivable balance after write off = Accounts receivable balance before write off - amount…
Q: On August 2, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his…
A: Interest on notes = Face value of note x rate of interest x days / 360 = $6,000 x 12% x 90/360 =…
Q: Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance…
A: Under Direct write off method, the accounts receivable of the related customer is directly written…
Q: At December 31, 2021, Blossom Company had a credit balance of $19,100 in Allowance for Doubtful…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
2) Moonlight Company wrote off the account of one of its customers, X, in 2018 for $500. On January 21, 2019, X unexpectedly repaid his account in full. The company uses the direct write off method to account for uncollectible receivables
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO 1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that Diamond Furniture had written off on March 1. From the following given options , identify which of the following two journal entries can be pass in the books of Diamond Furniture for the recovery of uncollectable accounts receivables under allowance method ? i ) Dr Accounts receivables A / C OMR 1000 and Cr Allowance for bad debt A / C OMR1000 ii ) Dr Allowance for bad debt A / C OMR1000 and Cr Accounts receivables A / C OMR1000 iii ) Dr Cash A / C OMR 1000 and Cr Accounts receivables A/C OMR 1000 iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000 a. i ) & iv ) b . i ) & iii ) O c . ii ) & iii ) D. i) & ii)Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO 1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that Diamond Furniture had written off on March 1. From the following given options, identify which of the following two journal entries can be pass in the books of Diamond Furniture for the recovery of uncollectable accounts receivables under allowance method ? i)Dr Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000 ii) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000 iii) Dr Cash A/C OMR 1000 and Cr Accounts receivables A/C OMR 1000 iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000 a. ii) & iii) b. i) & iv) c. i) & iii) d. i) & ii)Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write off of the RO 1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that Diamond Furniture had written off on March 1. From the following given options, identify which of the following two journal entries can be pass in the books of Diamond Furniture for the recovery of uncollectable accounts receivables under allowance method ? Dr. Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000 i) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000 i) Dr Cash A/C OMR 1000 and Cr Accounts Receivables A/C OMR 1000 iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000
- At the end of 2020, Crane Co. has accounts receivable of $740,200 and an allowance for doubtful accounts of $69,900. On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,.400. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value List of AccountsAt the end of 2022, Cullumber Co. has accounts receivable of $717,900 and an allowance for doubtful accounts of $63,900. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,900. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation e Textbook and Media Debit CreditAce Company uses the Aging of receivables method to account for uncollectible accounts. The company had the following balances on January 01, 2019. Accounts receivable $2,800,000 Allowance for uncollectible accounts $88,800 (credit) The company completed the following transactions during 2019. Wrote off the balance of $1,000 from Shari Wickham’s account as uncollectible on April 20 Re-instated the account of Louis Benn and recorded the collection of $1,500 as payment in full for her account which had been written off earlier on November 27 On December 31st, Recorded the uncollectible account expense based on the aging schedule. The schedule showed that $124,500 of accounts receivable was estimated as uncollectible and made the closing entry for the uncollectible expense account. Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information…
- 1. Journalize all entries for Symphony Bank related to the note for 2018 and 2019. 2. Which party has a a. note receivable? b. note payable? c. interest revenue? d. interest expense? 3. Suppose that Kara Perry defaulted on the note. What entry would Symphony record for the dishonored note?At the end of 2022, Sheridan Co. has accounts receivable of $807,800 and an allowance for doubtful accounts of $58,300. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,000. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditGrandview, Incorporated uses the allowance method. At December 31, 2021, the company's balance sheet reports Accounts Receivable, Net in the amount of $17,000. On January 2, 2022, Grandview writes off a $1,500 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write- off? Multiple Choice $15,500 $1,500 $18,500 $17,000
- Grandview, Incorporated uses the allowance method. At December 31, 2021, the company's balance sheet reports Accounts Receivable, Net in the amount of $27, 200. On January 2, 2022, Grandview writes off a $ 2,400 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? a $27, 200 b $2,400 c $29, 600 d $24, 800Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers.On April 1, 2018, the company factored, without recourse, some of its accounts receivable. Magrath transferredthe receivables to a financial institution, and will have no further association with the receivables.Magrath uses the allowance method to account for uncollectible accounts. During 2018, some accounts werewritten off as uncollectible and other accounts previously written off as uncollectible were collected.Required:1. How should Magrath account for and report the accounts receivable factored on April 1, 2018? Why is thisaccounting treatment appropriate?2. How should Magrath account for the collection of the accounts previously written off as uncollectible?3. What are the two basic approaches to estimating uncollectible accounts under the allowance method? What isthe rationale for each approach?At the end of 2021, Kingbird Co. has accounts receivable of $691,500 and an allowance for doubtful accounts of $25,740. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $3,943. (a)Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (b)What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value $Enter a dollar amount $Enter a dollar amount