Question

In: Accounting

What are the methods used to account for bad debts expense? How is interest calculated on...

What are the methods used to account for bad debts expense?

How is interest calculated on notes receivable? How is it recorded?

What is included in the in the cost of plant assets?

How is straight line depreciation calculated and recorded?

What are intangible assets and how are they recorded?(Including amortization)

What are liabilities and how are they classified?

How do we account for Notes Payable and record the related transactions?

What is Bonds Payable? What accounts are used to record bonds payable transactions?

What are the advantages/disadvantages of corporations?

How do we record the sale and purchase of stock?

What are cash dividends and how are they recorded? What is a stock dividend?

What is the purpose of the cash flow statement and how do we prepare the indirect method?

What is an extraordinary item and how are they recorded?

What is horizontal and vertical analysis and how do you prepare?

Understand how to use the formulas to do ratio analysis.

Expert Solution

1. credit losses are debited to bad debt expense or uncollectible account. yhe two methods uded in accpunying for uncollectible accounts are:- the direct write off method and the allowance method

2. Interest revenue is calculated and recorded separately of interest receivable. A note generally creates interest income even though the interest has yet to be paid in cash by the borrower. ... On Dec. 31, 2015, you would record $52.50 as a credit to interest revenue. Interest receivable would be debited by an equal amount

4. the cost of property, plant assets includes the purchase price and all the expenditured incurred on it. land, if land purchases then the real estate commission, legal fee, bank fee involves.

5.straight line depriciation method is a default method and usually reduce the carrying amount of asset over its useful life. Subtract the estimated salvage value of the asset from the amount at which it is recorded on the books.

6.an intangible asset is non-physical asset that has a useful life of grrater than onr year.

and amortization account will br debited and intangible asset account will be credit as expenses are increases with debitng and decreases with crediting.

ekkarill92 answered 1 year ago

How do the percent-of-receivables and aging-of-receivables methods compute bad debts expense?

Discuss the 2 different methods used to account for bad debts/uncollectible accounts by a company. Include...

Discuss the 2 different methods used to account for bad debts/uncollectible accounts by a company. Include both ways of calculating the entry needed using the allowance method. Show an example of the adjusting entry made under the allowance method, as well as write-offs under each method. Discuss which method is preferable under GAAP and why?

Question 2 (20 marks) a) Discuss and describe two methods to account for bad debts. Provide...

Question 2 a) Discuss and describe two methods to account for bad debts. Provide an example of each method using journal. (7.5 Marks) b) Identify and describe 5(five) internal control concepts and applications in control of cash receipts. (7.5 Marks) c) Explain the difference between expenses paid in advance and accrued expenses. Provide an example of each to demonstrate your understanding.

Q. Estimating bad debts (4 marks) Contrast two different methods of estimating bad debts. Create simple...

Q. Estimating bad debts Contrast two different methods of estimating bad debts. Create simple examples.

The sales method for estimating bad debts is calculated using ________. A) aging of accounts receivable...

The sales method for estimating bad debts is calculated using ________. A) aging of accounts receivable B) a percentage of credit sales C) a percentage of net accounts receivable D) the current balance in accounts receivable Team Shirts had a balance in its allowance for uncollectible accounts of $(200). Aging the accounts receivable showed that the allowance should be $(1,800). Bad debts expense should be ________. A) $1,400 B) $1,600 C) $1,800 D) $2,000 Learning Objective 4-4 Credit card sales...

Which of the following would NOT be an acceptable method to account for bad debts if...

Which of the following would NOT be an acceptable method to account for bad debts if accounts receivable is a material aspect of a company’s operations? wait until the account becomes uncollectible, and then recognize bad debt expense estimate a percent of future uncollectible accounts at the time of each credit sale, and assign this amount to an allowance for uncollectible accounts periodically conduct an aging of accounts receivable to determine the size of the allowance for uncollectible accounts.

The Femaware Company uses the allowance method to account for bad debts. At the beginning of...

The Femaware Company uses the allowance method to account for bad debts. At the beginning of year 1, the allowance account had a credit balance of $66,844. Credit sales for year 1 totaled $2,139,000 and the year end accounts receivable balance was $436,713. During this year, $65,061 in receivables were determined to be uncollectible. Femaware anticipates that 4% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31. Required: 1. Does this situation describe a...

For company's that use the Allowance method, why do they calculate and journalize bad debts expense?...

For company's that use the Allowance method, why do they calculate and journalize bad debts expense? (Hint: think about some of the GAAP principles learned in Chapter 1 and Chapter 3.) In your opinion, what is the trickiest part of Chapter 8. Explain.

Contrast two different methods of estimating bad debts. Create simple examples.

Describe the two methods of accounting for bad debts under the allowance method (not the direct...

Describe the two methods of accounting for bad debts under the allowance method (not the direct write off method used on tax returns). Include how we estimate the allowance needed under one of the methods and how we account for write offs and recoveries of write offs.