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financial accounting

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Question 4 (1 point) If a company determines that they will no longer be able to collect an account receivable, then this acc
Question 6 (1 point) On July 1st, a company exchanges an account receivable from a customer with a $100,000 note receivable d
Question 7 (1 point) On July 1st, a company exchanges an account receivable from a customer with a $100,000 note receivable d
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Answer #1

4)The statement is True

When any amount due from receivables seems to be uncollectible ,same should be written off by removing the amount from accounts receivable.

5)The statement is true

Under the allowance method ,The entry to reinstate accounts receivable includes Debit to accounts receivable (asset) and credit allowance for doubtful account(contra asset) which means overall affect is 0

Accounts receivable 100
Less:Allowance for doubtful account -100
Effect 0

On subsequent collection entry includes Debit to cash and credit accounts receivable .

cash 100
Accounts receivable -100
Effect 0

so overall effect on total asset is 0

6)Correct option is "B"

Journal entry on July 1 includes Debit to Note receivable and credit to accounts receivable

7)correct option is "A"

Journal entry on 31July for accrual of interest includes Debit Interest receivable and credit Interest income .

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