Homework Answers
Question 8:
The correct answer is "Bad Debt Expense".
Supporting explanation:
When bad debts is written off, the Accounts Receivable that has debit balance is credited with bad debt amount and Bad Debt Expense account is debited. When the same bad debt amount that was written off is collected in subsequent period, then Bad Debt Expense account is credited in order to give the negative impact to close the bad debt expense account and Accounts Receivable account is debited to cancel the impact due to written off.
Therefore, the credit to reinstate the account is Bad Debt Expense Account.
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Question 6 (4 points) When an account has been written off under the direct write-off method...
The balance of the allowance for bad debts account after adjustment, using the percentage of sales...
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QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each...
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
why not b？ Under the direct write-off method, what adjustment is made at the time an...
why not b？
Under the direct write-off method, what adjustment is made at the time an actual bad debt occurs? 6. A. Debit bad debt expense, credit the allowance for uncollectible accounts B. Debit the allowance for uncollectible accounts, credit accounts receivable C. Debit bad debt expense, credit accounts receivable 4 D. Debit the allowance for uncollectible accounts, credit bad debt expense E. No adjustment is made
Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for...
Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2018, its balance for Accounts Receivable is $28,000. The company estimates that of this amount, $3,300 is not likely to be collected in 2019. In 2019, the actual amount of bad debts is $2,200. Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2018 and the actual bad debts in 2019. (If no entry...
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense....
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Under the allowance method for uncollectible accounts, A) Bad Debts Expense is debited when an account...
Under the allowance method for uncollectible accounts, A) Bad Debts Expense is debited when an account is deemed uncollectible and must be written off. B) the carrying value of receivables is the same both before and after an account has been written off. C) the carrying amount of receivables is the same both before and after an account that had previously been written off is recovered. D) the recovery of an account receivable previously written off results in a credit...
please help Under the direct write-off method, when an account receivable is written off in one...
please help
Under the direct write-off method, when an account receivable is written off in one accounting period and is collected in the following accounting period, which of the following would be included in the journal entry? Oa. debit Accounts Receivable Ob. credit Bad Debt Expense Occredit Cash Od credit Accounts Receivable
What is the journal entry to write off a customer's account under the direct write-off method?...
What is the journal entry to write off a customer's account under the direct write-off method? O No entry is required. O Debit Cash; credit Accounts Receivable/customer name. Debit Bad Debt Expense; credit Allowance for Uncollectible Accounts Debit Bad Debt Expense; credit Accounts Receivable/customer name.
Question no.1 Percent of sales method; write-off At year-end (December 31), Rashed Company estimates its bad...
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Required Information Learning Objective 07-P2: Apply the allowance method to accounts receivable. Under the allowance method,...
Required Information Learning Objective 07-P2: Apply the allowance method to accounts receivable. Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits the Bad Debts Expense account and credits the Allowance for Doubtful Accounts. The uncollectible accounts are later written off with a debit to the Allowance for Doubtful Accounts. Knowledge Check 01 The allowance method of accounting for bad debts has the following advantages over the direct write-off...
The balance of the allowance for bad debts account after adjustment, using the percentage of sales method, must be equal to the percent of uncollectible accounts multiplied by the amount of credit sales. True False
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
why not b？
Under the direct write-off method, what adjustment is made at the time an actual bad debt occurs? 6. A. Debit bad debt expense, credit the allowance for uncollectible accounts B. Debit the allowance for uncollectible accounts, credit accounts receivable C. Debit bad debt expense, credit accounts receivable 4 D. Debit the allowance for uncollectible accounts, credit bad debt expense E. No adjustment is made
Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2018, its balance for Accounts Receivable is $28,000. The company estimates that of this amount, $3,300 is not likely to be collected in 2019. In 2019, the actual amount of bad debts is $2,200. Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2018 and the actual bad debts in 2019. (If no entry...
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $400000 and credit sales are $1600000. Management estimates that 6 % of accounts receivable will be uncollectible. What adjusting entry will Blue Spruce Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4000 before adjustment? Bad Debt Expense 16000 Accounts Receivable 16000 Bad Debt Expense 20000 Allowance for Doubtful Accounts 20000 Bad Debt Expense 8000...
please help
Under the direct write-off method, when an account receivable is written off in one accounting period and is collected in the following accounting period, which of the following would be included in the journal entry? Oa. debit Accounts Receivable Ob. credit Bad Debt Expense Occredit Cash Od credit Accounts Receivable
What is the journal entry to write off a customer's account under the direct write-off method? O No entry is required. O Debit Cash; credit Accounts Receivable/customer name. Debit Bad Debt Expense; credit Allowance for Uncollectible Accounts Debit Bad Debt Expense; credit Accounts Receivable/customer name.
Question no.1 Percent of sales method; write-off At year-end (December 31), Rashed Company estimates its bad debts as 0.5 % of its annual credit sales of AED975,000. Rashed records its bad debts expense for that estimate. On the following March 15, Rashed decides that the AED1,250 account of A. Abdulla is uncollectible and writes it off as a bad debt On April 15, Abdulla unexpectedly pays the amount previously written off. Required: Prepare the joumal entries of Rashed to record...
Required Information Learning Objective 07-P2: Apply the allowance method to accounts receivable. Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits the Bad Debts Expense account and credits the Allowance for Doubtful Accounts. The uncollectible accounts are later written off with a debit to the Allowance for Doubtful Accounts. Knowledge Check 01 The allowance method of accounting for bad debts has the following advantages over the direct write-off...
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