Homework Answers
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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Question 4 (1 point) If a company determines that they...
please help! thanks! The company uses the aging of receivables method to estimate the amount that...
please help! thanks!
The company uses the aging of receivables method to estimate the amount that should be reported in the allowance for doubtful accounts at the end of the period. At the end of the period outstanding accounts receivable total $1,560,000. Of the $1,560,000 in accounts receivable, $120,000 are 1-30 days past due; $80,000 are 31-90 days past due; and $30,000 are more than 90 days past due. The remaining receivables are current (not past due). Based on historical...
thank you for your help! Question 8 (1 point) On July 1st, a company exchanges an...
thank you for your help!
Question 8 (1 point) On July 1st, a company exchanges an account receivable from a customer with a $100,000 note receivable due in 3 years with a 12% annual interest rate. The customer repays the loan and the accrued interest at the end of the three years. Assume that interest is not compounding from period to period. On receipt of cash from the customer, who pays the principal and all of the interest owed to...
Problem 4-BA The following accounting items were found in the journal of Wildhorse Company: 1. 2....
Problem 4-BA The following accounting items were found in the journal of Wildhorse Company: 1. 2. 3. 4. S. 6. 7. 8. The payment of the current month's rent for $590 was recorded as a debit to Interest Payable and a credit to Cash, both for $590. (Note: This had not been previously accrued.) The collection of an account receivable for $480 was debited to Cash and credited to Service Revenue, both for $480. A payment for Utilities Expense of...
Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable....
Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable. Selected transactions completed by Ditzler Company are as follows: Feb. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. Wrote off a $2,500 account from Dorset Co. as uncollectible. Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14% note. Received the interest...
Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines...
Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $9,800 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt Prepare journal entries to record the above selected transactions of Dexter. View transaction list Journal entry worksheet 1 2 3 Record write off of Leer Company account Note: Enter debits...
On April 1, 2017, BLANK Company assigns $504,100 of its accounts receivable to the BLANK Bank...
On April 1, 2017, BLANK Company assigns $504,100 of its accounts
receivable to the BLANK Bank as collateral for a $314,000 loan due
July 1, 2017. The assignment agreement calls for BLANK company to
continue to collect the receivables. BLANK Bank assesses a finance
charge of 4% of the accounts receivable, and interest on the loan
is 10% (a realistic rate of interest for a note of this type).
Prepare the April 1, 2017, journal entry for BLANK Company.
(If...
Exercise 7-15 On April 1, 2017, Cheyenne Company assigns $524,600 of its accounts receivable to the...
Exercise 7-15 On April 1, 2017, Cheyenne Company assigns $524,600 of its accounts receivable to the Third National Bank as collateral for assignment agreement callls for Cheyenne to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for $336,000 loan due July 1, 2017. The note of this type) Prepare the April 1, 2017, journal entry for C fele...
Question 19 The information below relates to the Cash account in the ledger of Minton Company....
Question 19 The information below relates to the Cash account in the ledger of Minton Company. Cash deposited-$64,040 Balance September 1-$17,260; Balance September 30-$18,104; Checks written-$63,196 The September bank statement shows a balance of $17,122 on September 30 and the following memoranda. Credits Debits Collection of $1,841 note plus interest $39 Interest earned on checking account $1,880 $54 NSF check: Richard Nance $775 Safety deposit box rent $74 At September 30, deposits in transit were $4,800, and outstanding checks totaled...
Question 9 (of 15) Harrison Company maintains a checking account at the First National City Bank....
Question 9 (of 15) Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2016 bank statement included the following information: Balance, July 1, 2016 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account S 57,803 181,200 (194,310) (60) (includes $170 in interest) 4,170) 38,413 Balance, July 31, 2016 The company's general...
Ditzler Company, a construction supply company, uses unting for uncollectible accounts receivable. Selected transactions comple the...
Ditzler Company, a construction supply company, uses unting for uncollectible accounts receivable. Selected transactions comple the allowance method of accoun Ditzler Company are as follows: by Eeh. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. 15, 9. Mar. Wrote off a $2500 account from Dorset Co. as uncollectible Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14%...
please help! thanks!
The company uses the aging of receivables method to estimate the amount that should be reported in the allowance for doubtful accounts at the end of the period. At the end of the period outstanding accounts receivable total $1,560,000. Of the $1,560,000 in accounts receivable, $120,000 are 1-30 days past due; $80,000 are 31-90 days past due; and $30,000 are more than 90 days past due. The remaining receivables are current (not past due). Based on historical...
thank you for your help!
Question 8 (1 point) On July 1st, a company exchanges an account receivable from a customer with a $100,000 note receivable due in 3 years with a 12% annual interest rate. The customer repays the loan and the accrued interest at the end of the three years. Assume that interest is not compounding from period to period. On receipt of cash from the customer, who pays the principal and all of the interest owed to...
Problem 4-BA The following accounting items were found in the journal of Wildhorse Company: 1. 2. 3. 4. S. 6. 7. 8. The payment of the current month's rent for $590 was recorded as a debit to Interest Payable and a credit to Cash, both for $590. (Note: This had not been previously accrued.) The collection of an account receivable for $480 was debited to Cash and credited to Service Revenue, both for $480. A payment for Utilities Expense of...
Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable. Selected transactions completed by Ditzler Company are as follows: Feb. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. Wrote off a $2,500 account from Dorset Co. as uncollectible. Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14% note. Received the interest...
Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $9,800 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt Prepare journal entries to record the above selected transactions of Dexter. View transaction list Journal entry worksheet 1 2 3 Record write off of Leer Company account Note: Enter debits...
On April 1, 2017, BLANK Company assigns $504,100 of its accounts
receivable to the BLANK Bank as collateral for a $314,000 loan due
July 1, 2017. The assignment agreement calls for BLANK company to
continue to collect the receivables. BLANK Bank assesses a finance
charge of 4% of the accounts receivable, and interest on the loan
is 10% (a realistic rate of interest for a note of this type).
Prepare the April 1, 2017, journal entry for BLANK Company.
(If...
Exercise 7-15 On April 1, 2017, Cheyenne Company assigns $524,600 of its accounts receivable to the Third National Bank as collateral for assignment agreement callls for Cheyenne to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for $336,000 loan due July 1, 2017. The note of this type) Prepare the April 1, 2017, journal entry for C fele...
Question 19 The information below relates to the Cash account in the ledger of Minton Company. Cash deposited-$64,040 Balance September 1-$17,260; Balance September 30-$18,104; Checks written-$63,196 The September bank statement shows a balance of $17,122 on September 30 and the following memoranda. Credits Debits Collection of $1,841 note plus interest $39 Interest earned on checking account $1,880 $54 NSF check: Richard Nance $775 Safety deposit box rent $74 At September 30, deposits in transit were $4,800, and outstanding checks totaled...
Question 9 (of 15) Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2016 bank statement included the following information: Balance, July 1, 2016 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account S 57,803 181,200 (194,310) (60) (includes $170 in interest) 4,170) 38,413 Balance, July 31, 2016 The company's general...
Ditzler Company, a construction supply company, uses unting for uncollectible accounts receivable. Selected transactions comple the allowance method of accoun Ditzler Company are as follows: by Eeh. 1 Sold merchandise on account to Ames Co., $8,000. The cost of the mer- chandise sold was $4,500. Accepted a 60-day, 12% note for $8,000 from Ames Co. on account. 15, 9. Mar. Wrote off a $2500 account from Dorset Co. as uncollectible Loaned $7,500 cash to Jill Klein, receiving a 90-day, 14%...
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