Homework Answers
Answer
A) overstated
Explanation -
Entry for Provision of doubtful debts will be - .
Bad debt expenses Debit
Provision for doubtful debts Credit
Bad debt expense will be charged in income statement and provision for doubtful debts will be shown in balance sheet in account receivable as credit balance.
In case of no entry for provision is done then, the profit is overstated as bad debt expenses are not charged income statement.
Add Answer to:
1) If no provision for doubtful debts is made in the current accounting year, the current...
An increase in the provision for doubtful debts will A increase the net profit for the...
An increase in the provision for doubtful debts will A increase the net profit for the year B increase the gross profit for the year C decrease the net profit for the year D decrease the gross profit for the year 11:47 PM ✓
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this...
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this an example? Explain your answer. ii) What is the purpose of creating a provision for doubtful debts? iii) How might the amount of a provision for doubtful debts be calculated?
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful...
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful debts account, and it was decided to maintain the provision at 10% of the debtors at each year end. The debtors on 31 December each year were: • 2005=24,000 • 2006=16,000 • 2007=16,000 Show the necessary entries for the three years ended 31 December 2005 to 2007 inclusive in the following: 1) Provision for doubtful debts accounts (ii) Profit & loss accounts. (2b) What...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful debts from $100 to $600, the entries in the book would be to....... A debit provision for doubtful debts account, credit bad debts account with $600 B debit provision for doubtful debts account, credit bad debts account with $500 C debit bad debts account, credit provision for doubtful debts accounts with $500 D debit bad debt account, credit provision for doubtful debts account with...
A)Accounts receivable accounts B) Allowance for doubtful debts account. C) Statement of profit or loss (extract)....
A)Accounts receivable accounts
B) Allowance for doubtful debts account.
C) Statement of profit or loss (extract).
D) Statement of financial position(extract).
Accounting for Accounts Receivable 15 & Suria commenced business on 1 January 20X0. At year end, 31 December 20X0, the accounts receivable balance was RM10,000. In addition, she found that it was necessary to create an allowance for doubtful debts of RM960. ro During the year ended 31 December 20X1, an amount totalling RM840 proved to be bad and...
64. The charge made to the current operations for the portion of cost of long-lived assets...
64. The charge made to the current operations for the portion of cost of long-lived assets consumed during the current period is called _________________. Answers: a. accumulated depreciation b. rent expense c. indirect labor d. depreciation 65. Stocks and bonds that can be readily converted into cash are called _____________. Answers: a. Current Assets b. Current Liabilities c. Marketable Securities d. Treasury Stock 66. Which of the following is a permanent account? Answers: a. Accumulated Depreciation b. Advances from Customers...
1)At the end of BCD's financial year, the company has debtors of $60,000 & a provision...
1)At the end of BCD's financial year, the company has debtors of $60,000 & a provision for doubtful debts of $5,500. It was proposed to maintain provision for doubtful debts at 10%. What will be the amount to be passed to the income statement?
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the...
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the adjusting entry for bad debts expense. Aher analyzing the accounts in the accounts receivable subsidiary ledgerusing the aging of-receivables method, the company's management estimates that uncofect ble accounts will be $14.700. What will be the balance of the Allowance for Bed Debts reported on the balance et $23.000 $13.230 $14,700 56,400 QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home...
1. Which account is closed at the end of an accounting period? Select one: a. Prepaid...
1. Which account is closed at the end of an accounting period? Select one: a. Prepaid Expense b. Sales Discount c. Unearned Revenue d. Retained Earnings 2. At the end of the current year, the Owners' Equity in LaRose Corporation is $188,000. During the year, the assets of the business had decreased by $90,000, and the liabilities had increased by $36,000. Owners' Equity at the beginning of the year must have been: Select one: a. $242,000 b. $314,000 c. $494,000...
A company uses accrual-basis accounting. Shortly before the end of the current year, the company earned...
A company uses accrual-basis accounting. Shortly before the end of the current year, the company earned $1,000 by providing services to a customer but the customer does not pay the company until the following year. Nothing is recorded regarding these events, including year-end adjusting entries. This omission would cause the company’s current year Group of answer choices liabilities to be understated. revenues to be overstated. retained earnings to be overstated. assets to be overstated. stockholders' equity to be understated.
An increase in the provision for doubtful debts will A increase the net profit for the year B increase the gross profit for the year C decrease the net profit for the year D decrease the gross profit for the year 11:47 PM ✓
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this an example? Explain your answer. ii) What is the purpose of creating a provision for doubtful debts? iii) How might the amount of a provision for doubtful debts be calculated?
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful debts account, and it was decided to maintain the provision at 10% of the debtors at each year end. The debtors on 31 December each year were: • 2005=24,000 • 2006=16,000 • 2007=16,000 Show the necessary entries for the three years ended 31 December 2005 to 2007 inclusive in the following: 1) Provision for doubtful debts accounts (ii) Profit & loss accounts. (2b) What...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful debts from $100 to $600, the entries in the book would be to....... A debit provision for doubtful debts account, credit bad debts account with $600 B debit provision for doubtful debts account, credit bad debts account with $500 C debit bad debts account, credit provision for doubtful debts accounts with $500 D debit bad debt account, credit provision for doubtful debts account with...
A)Accounts receivable accounts
B) Allowance for doubtful debts account.
C) Statement of profit or loss (extract).
D) Statement of financial position(extract).
Accounting for Accounts Receivable 15 & Suria commenced business on 1 January 20X0. At year end, 31 December 20X0, the accounts receivable balance was RM10,000. In addition, she found that it was necessary to create an allowance for doubtful debts of RM960. ro During the year ended 31 December 20X1, an amount totalling RM840 proved to be bad and...
1)At the end of BCD's financial year, the company has debtors of $60,000 & a provision for doubtful debts of $5,500. It was proposed to maintain provision for doubtful debts at 10%. What will be the amount to be passed to the income statement?
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the adjusting entry for bad debts expense. Aher analyzing the accounts in the accounts receivable subsidiary ledgerusing the aging of-receivables method, the company's management estimates that uncofect ble accounts will be $14.700. What will be the balance of the Allowance for Bed Debts reported on the balance et $23.000 $13.230 $14,700 56,400 QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home...
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