Homework Answers
The correct answer will be
No effect on total assets and total equity
Explanation
When ever an amount is considered as uncollectable, amount is written off by crediting account receivable and debit allowance for doubtful account. Since they are shown net in balance sheet. So it does not impact the assets and total equity.
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MC Qu. 5-44 On January 1, Year 2, Kincaid Company's... On January 1, Year 2, Kincaid...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70.400 and $2.800, respectively. During the year Kincaid reported $187000 of credit sales. Kincaid wrote off $1700 of receivables as uncollectible in Year 2, Cash collections of receivables amounted to $222,300 Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts wil: Multiple Choice decrease total assets...
10. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts...
10. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $63,400 and $1,300, respectively. During Year 2, Kincaid reported $152,000 of credit sales, wrote off $1,200 of receivables as uncollectible, and collected cash from receivables amounting to $161,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Which of the following describes the effects of Kincaid’s entry to recognize the write-off of the uncollectible accounts?...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70,400 and $2,800, respectively. During the year Kincaid reported $187,000 of credit sales. Kincaid wrote off $1,700 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $222,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to:...
QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company...
QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31.000 and 5500, respectively. During Year 2. Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74550. Kincaid estimates that it will be unable to collect one percent of credit sales What is the net realizable value of receivables that...
On January 1, Putnam Wholesale Company's Allowance for Doubtful Accounts had a credit balance of $21,00O....
On January 1, Putnam Wholesale Company's Allowance for Doubtful Accounts had a credit balance of $21,00O. During the year, it had net credit sales of $800,000 and it had $25,000 of uncollectible accounts receivable that were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage-of- receivables basis). If the accounts receivable balance at December 31 is $300,000, what is the required credit adjustment to the Allowance for Doubtful Accounts at December 31?...
MC Qu. 140 The following selected amounts... The following selected amounts are reported on the year-end...
MC Qu. 140 The following selected amounts... The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable $ 435,000 Debit Allowance for Doubtful Accounts 1,250 Debit Net Sales 2,100,000 Credit All sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjusting entry should the company make at the...
Receivables—Bad Debts At January 1, 2019, the credit balance in Master Company's Allowance for Doubtful Accounts...
Receivables—Bad Debts At January 1, 2019, the credit balance in Master Company's Allowance for Doubtful Accounts was $400,000. For 2019, the provision for doubtful accounts is based on a percentage of credit sales. Credit sales for 2019 were $50,000,000 (assume that all of Master's sales are credit sales). Based on the latest available facts, the 2019 provision for doubtful accounts is estimated to be 0.7% of credit sales. During 2019, uncollectible receivables amounting to $410,000 were written off against the...
Kncaid Company's Retained Earnings balance on January 1 was $9,000 Duing the curent year, Kincaid...
Kncaid Company's Retained Earnings balance on January 1 was $9,000 Duing the curent year, Kincaid eamed $3,000 in revenues and incured $4000 in pns Kincaid declared and paid $2.400 n dvidends,all n cash Aer OA. $5600 OB. $9 000 C. $8.000 O D. $9600
Kncaid Company's Retained Earnings balance on January 1 was $9,000 Duing the curent year, Kincaid eamed $3,000 in revenues and incured $4000 in pns Kincaid declared and paid $2.400 n dvidends,all n cash Aer OA. $5600...
During 2016, a company wrote off $7,500 in uncollectible accounts receivable. At the end of the...
During 2016, a company wrote off $7,500 in uncollectible accounts receivable. At the end of the year, bad debt expense was estimated using a percent of gross sales. In 2017, the company collected $1,500 from an account that was written off in 2016. Recording this collection would include a) a decrease to gross receivables. b) a debit to Retained Earnings. c) a credit to Allowance for Doubtful Accounts. d) an increase to net receivables.
On January 1, 2009 the accounts receivable and the allowance for doubtful accounts carried balances of...
On January 1, 2009 the accounts receivable and the allowance for doubtful accounts carried balances of $20,000 (debit) and $500 (credit), respectively. During the year, the company reported revenues of $100,000; 30% of which were cash sales. There were $550 of receivables written-off as uncollectible in 2009. Cash collections of receivables amounted to $74,550. If the company estimates bad debts expense to be 5% of the balance of A/R, determine the net realizable value of receivables appearing on the 2009...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70.400 and $2.800, respectively. During the year Kincaid reported $187000 of credit sales. Kincaid wrote off $1700 of receivables as uncollectible in Year 2, Cash collections of receivables amounted to $222,300 Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts wil: Multiple Choice decrease total assets...
QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31.000 and 5500, respectively. During Year 2. Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74550. Kincaid estimates that it will be unable to collect one percent of credit sales What is the net realizable value of receivables that...
On January 1, Putnam Wholesale Company's Allowance for Doubtful Accounts had a credit balance of $21,00O. During the year, it had net credit sales of $800,000 and it had $25,000 of uncollectible accounts receivable that were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage-of- receivables basis). If the accounts receivable balance at December 31 is $300,000, what is the required credit adjustment to the Allowance for Doubtful Accounts at December 31?...
Receivables—Bad Debts At January 1, 2019, the credit balance in Master Company's Allowance for Doubtful Accounts was $400,000. For 2019, the provision for doubtful accounts is based on a percentage of credit sales. Credit sales for 2019 were $50,000,000 (assume that all of Master's sales are credit sales). Based on the latest available facts, the 2019 provision for doubtful accounts is estimated to be 0.7% of credit sales. During 2019, uncollectible receivables amounting to $410,000 were written off against the...
Kncaid Company's Retained Earnings balance on January 1 was $9,000 Duing the curent year, Kincaid eamed $3,000 in revenues and incured $4000 in pns Kincaid declared and paid $2.400 n dvidends,all n cash Aer OA. $5600 OB. $9 000 C. $8.000 O D. $9600
Kncaid Company's Retained Earnings balance on January 1 was $9,000 Duing the curent year, Kincaid eamed $3,000 in revenues and incured $4000 in pns Kincaid declared and paid $2.400 n dvidends,all n cash Aer OA. $5600...
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