Question

Cut write-off method of accounting for uncollectible receivables is! A. an example of the balance sheet approach. B. an example of the income statement approach. C. not in conformity with GAAP. D. in conformity with the matching principle. 17. Gorp Corp. uses the percentage-of-sales method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts has a credit balance of $1,500. During the year Gorp Corp. writes off uncollectible receivables of $1,200. At the end of the year. Gorp Corp. has net credit sales $135,000, of which 2% are deemed uncollectible. What is Brickman's year-end balance in Allowance for Bad Debts? A. $300 B. $2,400 C. $2,700 D. $3,000 78. On December 12, Howard's Hardware sells materials for $7,800 to John Smith. Smith signs a 60-day! promissory note at 7% annual interest. On December 12, the journal entry made by Howard's Hardware for the sale to John Smith will include a A. credit to Sales Revenue for $7,800. B. debit to Accounts Receivable for $7,710. C. credit to Interest Revenue for $90. D. debit Interest Receivable for $90.

Answer 1

77) Brickman's year end balance in Allowance I for Bad debt is calculated below 300 2700 Allowance for bad debt (credit) 1500 Less un collectible receivable (1200) untten off current year uncollectible amount ($ 135000X 2%) Balance in Allowance for Bad, debt so Answer is 'option .!! $3000 78) The journal entry made by Hardware for the sale to include a Howard's John Smith will Date Account Debit ($) Credit ($2 Dec. 12 Account Receivable 7,800 To sales Revenue 7800 Answer is credit to sale Revenue for 7800 iso correct option is option" A.