chapter five

30% of 20mill won't be collected what are the following entries?

Dec 31 Bad debt expense 6 allowance for uncollectible accounts 6

At the beginning of the year, a company reports a credit balance of 10,000

shows that estimate of uncollectible accounts was too high

analyzing a company's fifth year of operation shows...

the target amount in allowance for uncollectible accounts is 25,500($$$)

On Feb 1 2021 clinic provides services of 10,000 to a patient, can't pay and is offered a six month 12% promissory note

(clinic) Feb 1 Note receivable 10,000 Account receivable 10,000 (service revenue) (patient entry) Feb 1 Account payable 10,000 Note payable 10,000 (clinic) Aug 1 Cash 10,600 Note Receivable 10,000 Interest Revenue 600 10,000*12/100*6/12=(600)

Joyce Corp. uses the percentage-of-receivables method to account for bad debt expense. Joyce determines that a customer account of $20,000 should be written off as uncollectible. The write off of the account will include which of the following entries?

-Debit to allowance for uncollectible accounts -Credit to account receivable

What kind of balance does a note receivable have?

-It has a normal debit balance -and is classified as an asset

when an account previously written off is collected in full, the entry to reverse the pervious write off would require which of the following?

-credit allowance for uncollectible accounts -debit accounts receivable.

what are the financial statement effects of recording bad debt expense using the allowance method

-decreases assets -increases expenses

what are classified as receivables

-tax refund claims -amounts owned by customers -amounts loaned and expected to be repaid

Planters Corp. wrote off a customer's uncollectible account in April. In the following month, Planters collected from the customer in full. The entry to reinstate the account would require a Multiple choice question. debit to Sales Returns and Allowances. credit to Allowance for Uncollectible Accounts. debit to Bad Debt Expense. credit to Accounts Receivable.

Credit to allowance for uncollectible accounts

Ophelia Inc. just learned that Patton Inc., one of its customers with an outstanding accounts receivable balance, filed for bankruptcy. Assuming that the company utilizes the allowance method, Ophelia should record a(n): Multiple choice question. increase in Allowance for Doubtful Accounts decrease in Accounts Receivable decrease in Sales Revenue increase in Accounts Receivable increase in Sales Revenue

Decrease in accounts receivable

Percentage-of-receivables method

Method of estimating uncollectible accounts based on the percentage of accounts receivable expected not to be collected