Question
In: Accounting
Describe the common classes of receivables,& Describe the accounting for uncollectible receivables.
Describe the common classes of receivables,& Describe the accounting for uncollectible receivables.
Solutions
Expert Solution
Common classes of receivables :
1) Account receivables= account receivables is mainly related to business. It is money owned to you that you have not received from your customers and they are normally expected to be collected within 30 or 60 days
2) Notes receivables = It is like account receivable but payment deadline are pre determined. These are amount that customer owe for which a formal, written instrument has been issued.
3) Trade receivables= trade receivables applies whenever a sale of a product or services is made to the customer. The only difference is that it is a direct result of sale made by you.
4) other receivables
Accounting for uncollectible receivables:
There are two methods:
1) direct write off method= this method record bad debt when A/R are determined to be uncollectible or worthless.
2) allowance method = this method record bad debt by estimating uncollectible account at the end of the accounting period.
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ekkarill92 answered 2 years agoRelated Solutions
Describe the common classes of receivables,& Describe the accounting for uncollectible receivables.
Describe the common classes of receivables,& Describe the
accounting for uncollectible receivables.
Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet...
Accounting for uncollectible accounts using the allowance method
(percent-of-receivables) and reporting receivables on the balance
sheet
At January 1, 2016, Carl's Garage had Accounts Receivable of $
34,000 and Allowance for Bad Debts had a credit balance of $ 3,000.
During the year, Carl's Garage recorded the following:
a. Sales of $189,000 ($165,000 on account; $ 24,000
for cash).
b. Collections on account, $ 133,000.
c. Write-offs of uncollectible receivables, $
2,800.
Requirements
1. Journalize Carl’s transactions that occurred during...
E9-20 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance...
E9-20 Accounting for uncollectible accounts using the allowance
method (aging-of-receivables) and reporting receivables on the
balance sheet
Estimate the amount of uncollectible receivables.
Mercy Hospital has the following balances on December 31, 2021, before any adjustment Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credio. Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Required: 1. Estimate the amount of uncollectible receivables. 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 3. Calculate net accounts receivable.
**11 spots in the journal Using the allowance method of accounting for uncollectible receivables. Apr. 1...
**11 spots in the journal
Using the allowance method of accounting for uncollectible
receivables.
Apr. 1
Sold merchandise on account to Jim Dobbs, $8,700. The cost of
the merchandise is $6,000.
June 10
Received payment for one-third of the receivable from Jim Dobbs
and wrote off the remainder.
Oct. 11
Reinstated the account of Jim Dobbs and received cash in full
payment.
Required:
Journalize the above transactions. Refer to the Chart of
Accounts for exact wording of account titles.
CHART...
Question 25 2.5 pts If the direct write-off method of accounting for uncollectible receivables is used,...
Question 25 2.5 pts
If the direct write-off method of accounting for uncollectible
receivables is used, what general ledger account is debited to
write off a customer's account as uncollectible?
Bad Debts Recovered
Bad Debts Expense
Interest Expense
Accounts Receivable
Flag this Question
Question 26 2.5 pts
What would be the basis for the following entry on a firm's
records?
Bad Debt Expense 150
Allowance for Doubtful Accounts 150
The firm is using the direct write-off method.
The firm is...
Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet...
Accounting for uncollectible accounts using the allowance method
(percent-of-sales) and reporting receivables on the balance
sheet
At January 1, 2013, Mary's Local Store had Accounts Receivable
of $ 34,000 and Allowance for Bad Debts had a credit balance of $
3,000. During the year, Mary's Local Store recorded the
following:
a. Sales of $189,000 ($165,000 on account; $ 24,000
for cash).
b. Collections on account, $ 133,000.
c. Write-offs of uncollectible receivables, $
2,800.
Requirements
1. Journalize Mary’s transactions that...
Journalize the following transactions using the allowance method of accounting for uncollectible receivables. April 1 Sold...
Journalize the following transactions using the allowance method
of accounting for uncollectible receivables.
April 1 Sold merchandise on account to Jim Dobbs, $7,770. The
cost of the merchandise is $3,885.
April 1
April 1
June 10 Received $2,590 from Jim Dobbs and wrote off the
remainder owed of $5,180. If an amount box does not require an
entry, leave it blank or enter "0".
June 10
Oct. 11 Reinstated the account of Jim Dobbs and received $5,180
cash in full...
Compare Two Methods of Accounting for Uncollectible Receivables Call Systems Company, a telephone service and supply...
Compare Two Methods of Accounting for Uncollectible
Receivables
Call Systems Company, a telephone service and supply company,
has just completed its fourth year of operations. The direct
write-off method of recording bad debt expense has been used during
the entire period. Because of substantial increases in sales volume
and the amount of uncollectible accounts, the company is
considering changing to the allowance method. Information is
requested as to the effect that an annual provision of ½% of sales
would have...
Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Oct....
Allowance Method
Journalize the following transactions, using the allowance
method of accounting for uncollectible receivables:
Oct. 2. Received $2,450 from Paula Spitler and
wrote off the remainder owed of $3,580 as uncollectible. If an
amount box does not require an entry, leave it blank.
Oct. 2
Cash
Allowance for Doubtful Accounts
Accounts Receivable-Paula Spitler
Feedback
When a customer account is identified as uncollectible, it is
written-off against the allowance account.
Dec. 20. Reinstated the account of Paula
Spitler and received...
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