10. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts...
10. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $63,400 and $1,300, respectively. During Year 2, Kincaid reported $152,000 of credit sales, wrote off $1,200 of receivables as uncollectible, and collected cash from receivables amounting to $161,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Which of the following describes the effects of Kincaid’s entry to recognize the write-off of the uncollectible accounts?
a.increase assets and stockholders' equity
b. increase assets and decrease stockholders' equity
c. decrease assets and stockholders' equity
d. does not affect assets or stockholders' equity
Homework Answers
Journal entry : Write off
| No | General Journal | Debt | Credit |
| Allowance for doubtful accounts | XXX | ||
| Account receivable | XXX | ||
So under allowance method write off journal entry is above
So answer is d) Does not affect assets or stockholder's equity
Add Answer to:
10. On January 1, Year 2, Kincaid Company's Accounts Receivable
and the Allowance for Doubtful Accounts...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70.400 and $2.800, respectively. During the year Kincaid reported $187000 of credit sales. Kincaid wrote off $1700 of receivables as uncollectible in Year 2, Cash collections of receivables amounted to $222,300 Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts wil: Multiple Choice decrease total assets...
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On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70,400 and $2,800, respectively. During the year Kincaid reported $187,000 of credit sales. Kincaid wrote off $1,700 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $222,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to:...
MC Qu. 5-44 On January 1, Year 2, Kincaid Company's... On January 1, Year 2, Kincaid...
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QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company...
QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31.000 and 5500, respectively. During Year 2. Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74550. Kincaid estimates that it will be unable to collect one percent of credit sales What is the net realizable value of receivables that...
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Allowance for Doubtful Accounts At the beginning of the year, Kullerud Manufacturing had a credit balance...
Allowance for Doubtful Accounts At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $6,509. During the year Kullerud made credit sales of $890,000, collected receivables in the amount of $812,000, wrote off receivables in the amount of $31,425, and recorded bad debt expense of $33,750. Compute the amount of receivables that Kullerud wrote during the year.
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70.400 and $2.800, respectively. During the year Kincaid reported $187000 of credit sales. Kincaid wrote off $1700 of receivables as uncollectible in Year 2, Cash collections of receivables amounted to $222,300 Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts wil: Multiple Choice decrease total assets...
MC Qu. 5-44 On January 1, Year 2, Kincaid Company's... On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $64,000 and $1,400, respectively. During the year Kincaid reported $155,000 of credit sales, Kincaid wrote off $1,250 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $166,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales Kincaid's entry to recognize the write-off...
QUESTION 1 The following information applies to the questions displayed below. On January 1 Year 2. Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31.000 and 5500, respectively. During Year 2. Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74550. Kincaid estimates that it will be unable to collect one percent of credit sales What is the net realizable value of receivables that...
Receivables—Bad Debts At January 1, 2019, the credit balance in Master Company's Allowance for Doubtful Accounts was $400,000. For 2019, the provision for doubtful accounts is based on a percentage of credit sales. Credit sales for 2019 were $50,000,000 (assume that all of Master's sales are credit sales). Based on the latest available facts, the 2019 provision for doubtful accounts is estimated to be 0.7% of credit sales. During 2019, uncollectible receivables amounting to $410,000 were written off against the...
On January 1, Putnam Wholesale Company's Allowance for Doubtful Accounts had a credit balance of $21,00O. During the year, it had net credit sales of $800,000 and it had $25,000 of uncollectible accounts receivable that were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage-of- receivables basis). If the accounts receivable balance at December 31 is $300,000, what is the required credit adjustment to the Allowance for Doubtful Accounts at December 31?...
The following information relates to the beginning of the year: Accounts receivable, $245,000 Allowance for doubtful accounts (credit balance), $12,250 During the current year, sales on account were $1,100,000 and collections on account were $990,000. Also during the current year, the company wrote off $14,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $17,000 credit balance so the company records the appropriate year-end adjusting entry. How much...
Allowance for Doubtful Accounts At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $6,509. During the year Kullerud made credit sales of $890,000, collected receivables in the amount of $812,000, wrote off receivables in the amount of $31,425, and recorded bad debt expense of $33,750. Compute the amount of receivables that Kullerud wrote during the year.
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