Homework Answers
Correct answer----direct write off
.
The direct write off method is not allowed by GAAP as it violates the matching principle.
All other other method given above are accepted by GAAP.
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QUESTION 12 Under GAAP, which of the following is NOT an acceptable method of estimating the...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
QUESTION 11 Two methods of estimating uncollectible receivables are O the direct write-off method and the percent...
QUESTION 11 Two methods of estimating uncollectible receivables are O the direct write-off method and the percent-of-completion method O the gross-up method and the direct write-off method O the aging-of-accounts-receivable method and the percent-of-sales me O the allowance method and the amortization method
34. After aging the accounts receivable, it is estimated that $790 will not be collected and...
34. After aging the accounts receivable, it is estimated that $790 will not be collected and the allowance s an exristing debit balance of $230. The adjusting entry under the aging approach would b for the amount of $790. b. $230. c. $560. d $1,020. 35. After aging the accounts receivable, it is estimated that $420 will not be collected and the allowance account has an existing debit balance of $100. If accounts receivable is $14 would be a. $145,000....
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense....
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...
under the direct weitenoff method which of the following is NOT acceptable method of wstimating the...
under the direct weitenoff method which of the following is NOT
acceptable method of wstimating the amount of bad debt
expense
QUESTION 4 Regarding impairment of intangible assets, which of the following statements is incorrect? Intangible assets are impaired when there has been a permanent decline in the value of the asset. Intangible assets with an indefinite life are tested for impairment annually. Impairment occurs when the fair value of an intangible asset is less than the book value. If...
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O...
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O When the expected bad debts are not significant O When the company pledges its accounts receivables O When the expected bad debts are significant O It is never acceptable to use the direct write-off method under GAAP O When the company sells its accounts receivables The advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and better...
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded a.when...
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded a.when a credit sale is past due b.whenever a predetermined amount of credit sales has been made c.at the end of each accounting period d.when an account is determined to be worthless
Please help me to fill out this. DEMONSTRATION PROBLEM-Estimating Uncoectible Accounts Based on Aging of Receivables Bad Debt Expense Account Receivable When accountants estimate uncollectible account...
Please help me to fill out this.
DEMONSTRATION PROBLEM-Estimating Uncoectible Accounts Based on Aging of Receivables Bad Debt Expense Account Receivable When accountants estimate uncollectible accounts based on receivables, they determine what the balance of the allowance for doubtful accounts should be. Assume that an accountant determines that $2,000 of the current accounts receivable (aging receivables) will probably not be collected Also assume that the Allowance for Doubtful Accounts currently shows a $200 credit balance Why the Allowance for Doubtful...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $735,000 1 %...
all together ; entries for bad debt expense and under the direct write off and allowance...
all together ; entries for bad debt expense and under the
direct write off and allowance methods
UUTIW ALUWIPNC ACCT I BL. Cengage CengageNOWV2 Online teaching and Ch 9-3 Exercises & Problems Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $21,550 33,925 Lee Drake Jenny Green Mike Lamb 27,565 19,460 $102,500 Total The company prepared the...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
QUESTION 11 Two methods of estimating uncollectible receivables are O the direct write-off method and the percent-of-completion method O the gross-up method and the direct write-off method O the aging-of-accounts-receivable method and the percent-of-sales me O the allowance method and the amortization method
34. After aging the accounts receivable, it is estimated that $790 will not be collected and the allowance s an exristing debit balance of $230. The adjusting entry under the aging approach would b for the amount of $790. b. $230. c. $560. d $1,020. 35. After aging the accounts receivable, it is estimated that $420 will not be collected and the allowance account has an existing debit balance of $100. If accounts receivable is $14 would be a. $145,000....
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...
under the direct weitenoff method which of the following is NOT
acceptable method of wstimating the amount of bad debt
expense
QUESTION 4 Regarding impairment of intangible assets, which of the following statements is incorrect? Intangible assets are impaired when there has been a permanent decline in the value of the asset. Intangible assets with an indefinite life are tested for impairment annually. Impairment occurs when the fair value of an intangible asset is less than the book value. If...
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O When the expected bad debts are not significant O When the company pledges its accounts receivables O When the expected bad debts are significant O It is never acceptable to use the direct write-off method under GAAP O When the company sells its accounts receivables The advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and better...
Please help me to fill out this.
DEMONSTRATION PROBLEM-Estimating Uncoectible Accounts Based on Aging of Receivables Bad Debt Expense Account Receivable When accountants estimate uncollectible accounts based on receivables, they determine what the balance of the allowance for doubtful accounts should be. Assume that an accountant determines that $2,000 of the current accounts receivable (aging receivables) will probably not be collected Also assume that the Allowance for Doubtful Accounts currently shows a $200 credit balance Why the Allowance for Doubtful...
all together ; entries for bad debt expense and under the
direct write off and allowance methods
UUTIW ALUWIPNC ACCT I BL. Cengage CengageNOWV2 Online teaching and Ch 9-3 Exercises & Problems Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $21,550 33,925 Lee Drake Jenny Green Mike Lamb 27,565 19,460 $102,500 Total The company prepared the...
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