estimates need to be made when recording poor debt expense and also it is not feasible to know which details accounts will certainly not it is in collected.


You are watching: Receivables are _________ on the __________, which are listed in order of ____________.

Flora Co. Provides the allowance method of bookkeeping for uncollectible account receivable. The entry to compose off an account that has actually been figured out to it is in uncollectible would certainly be together follows:
Allowance for skeptical Accounts has a credit transaction balance that $500 in ~ the end of the year (before adjustment), and Bad Debt price is approximated at 2% that sales. If sales room $500,000, the adjusting entry for uncollectible accounts would include:
a credit transaction to allowance for doubtful Accounts that $10,000journal entry:Bad Debt price 10,000 pin money for doubtful Accounts 10,000
Allowance for doubtful Accounts has a credit transaction balance of $500 in ~ the end of the year (before adjustment), and also an evaluation of accounts in the client ledger suggests doubtful accounts of $15,000. Which of the complying with entries documents the suitable provision for skeptical accounts?
A 60-day, 12% note for $10,000, dated may 1, is received from a customer on account. Assuming a 360-day year, the maturity worth of the keep in mind is
On December 1, Bright company receives a 6% interest-bearing note from Galvalume firm to settle a $20,000 account receivable. The keep in mind is early out in 3 months. At December 31, Bright should record attention revenue of
$100Feedback: Correct. The interest revenue would be calculated as ($20,000 × 6% × 1/12) or $100. One month is supplied as there is only one staying month in the year.
A 90-day, 12% note for $10,000, dated might 1, is got from a client on account. Suspect a 360-day year, the maturity worth of the note is
$10,300Feedback: The maturity value of a keep in mind is confront amount to add interest. This is calculation as: $10,000 + <$10,000 × 12% × (90/360)> = $10,300
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Fundamentals of financial Management, Concise edition (with Thomson ONE)8th EditionEugene F. Brigham, Joel F Houston


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