Provide the entry for the write off of the receivable

Assignment Help Accounting Basics

Reference no: EM133359909

Case: The December 31, 2019 unadjusted trial balance of a company disclosed the following balances:

Accounts receivable $200,000 DR

Allowance for doubtful accounts $1000 CR

Sales $710,000 CR

Sales returns and allowances $10,000 DR

Additionall, the firm has given up trying to collect on $5,000 of its accounts receivable but has not yet recorded the write off entry. The firm does not use the direct write off method to estimate bad debt expense.

a) Provide the entry for the write off of the receivable

b) Assume that after the firm recorded the write off and the firm uses the percentage of sales allowance method for recording bad debt expense. The firm has experienced an average of 6% rate of non collection based on sales, provide the entry to record bad debt expense for 2019.

c) Assume that after the firm recorded the $5,000 of write offs, it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method. Provide the entry to record bad debt expense.

Reference no: EM133359909

Questions Cloud

What does the term smart content refer to : What does the term Smart Content refer to? Tracking website visitors and displaying content most relevant to them. Tracking cursor movement on your webpage

What is the amount of googles accounts : What is the amount of Googles accounts-payable as of December 31, 2016? Within what time window is Google required to repay this liability

Compare and contrast the approaches to credit : Compare and contrast the approaches to credit rating by Moody's Investors Service and S&P (Standard & Poor's Financial Services)

Determine the heritage overlay requirements : Find the heritage overlay relevant to the site and produce a report for the client - determine the heritage overlay requirements for the site

Provide the entry for the write off of the receivable : ACCT 3004 University of Winnipeg Provide the entry for the write off of the receivable - The firm has experienced an average of 6% rate of non collection based

Can a mail sender use a two-tier architecture to send mail : Suppose your organization was contemplating switching from a host-based architecture to client-server architecture. What problems would you foresee?

Summarize use by pastoralists in southern oromia of ethiopia : Summarize the changes in land use by pastoralists in Southern Oromia of Ethiopia. Include ecological, economic, and social (policy) factors including Amharic.

Which religion interacts with other cultural aspects : What are some ways in which religion interacts with "other cultural aspects" such as politics, economics, [and] aesthetics"?

Analyze a business process with the igeo model and provide : Analyze a business process with the IGEO model and provide the following details: Main purpose of the process Inputs, Outputs, Guides, Enablers A high level

User Account

All Pages