Harrisburg company which began business in early 20x7

Assignment Help Accounting Basics

Reference no: EM13452421

Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles.

a. Prepare the journal entry needed to write off Mattingly's account.

b. Comment on the ability of the direct write-off method to value receivables on the year-end balance sheet.

Reference no: EM13452421

Questions Cloud

Would it be possible to create market mechanism to deal : would it be possible to develop a market mechanism to deal with some negative externalities? would it be possible to

The following preadjusted information for the maverick : the following preadjusted information for the maverick company is available on december 31bullaccounts receivable

Read the media articles take a little time to listen to : a lets explore how commercialism changes sports. when sports become entertainment packages what types of events or

Explain the stress response and the effects of cortisol : the endocrine system plays an important role in our ability to handle stress. hormone release associated with the

Harrisburg company which began business in early 20x7 : harrisburg company which began business in early 20x7 reported 40000 of accounts receivable on the december 31 20x7

The following information was taken from accounting records : the following information was taken from the accounting records of palmetto company for the month of januarybalance per

The data are monthly average of last year and monthly : as part of a study for the department of labor statistics you are assigned the task of evaluating the improvement in

What are some of the mineral geologic resources used in a : 1.what are some of the mineral geologic resources used in a cell phone and what happens to these resources when the

Describe the conflict faced by corporate insiders who : review just pucker and blow an analysis of corporate whistleblowers in chapter 2. please respond to the

User Account

All Pages