when a firm writes off a bad debt under the allowances method of accounting for bad...
when a firm writes off a bad debt under the allowances method of accounting for bad debts
a. the carrying amount of accounts recievables decreases
b. total net current assets will decrease
c. the cash account will decrease
d. the carrying amount of accounts receivable will not change
e. the carrying amount of accounts receivable increases
Homework Answers
Write off under allowance method
| No | General Journal | Debit | Credit |
| Allowance for doubtful accounts | XXX | ||
| Account receivable | XXX | ||
So allowance for doubtful account and account receivable both enter with same amount so no change in net account receivable
So answer is d) the carrying amount of accounts receivable will not change
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when a firm writes off a bad debt under the allowances method of
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Thank you for all your help! An advantage of basing bad debt expense on the historical...
Thank you for all your
help!
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PRINTE Question 6 Under the allowance method for uncollectible accounts, allowance for doubtful accounts increases,...
PRINTE Question 6 Under the allowance method for uncollectible accounts, allowance for doubtful accounts increases, while accounts receivables decrease when writing off an uncollectible account. O the entry to write off an uncollectible account only involves statement of financial position accounts. bad debt expense increases, while allowance for doubtful accounts decreases when writing off an uncollectible account. bad debts expense is not recorded until a customer defaults.
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Thank you for all your
help!
An advantage of basing bad debt expense on the historical relationship between bad debts and net credit sales is that it provides the best information to the credit department to use in its collection activities. it considers the balance in the allowance account when making the bad debt expense estimate. it provides the best estimate of the net realizable value of accounts receivable. oit best adheres to principle of cause and effect recognition. A...
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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
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