The ledger of Rashid Travel Agency includes the following accounts with normal balances on December 31, 2020: Rashid, Capital BD25,000; Drawings BD3,200; Fees Earned BD4,000; Ticket Revenues BD16,000; ;General Expense BD24,600 :Required Prepare the necessary closing entry for net income or loss from the available information on December .31, 2020 (aäi 4) Debit Income Summary BD4,600 and Credit Capital BD4,600 Debit Capital BD4,600 and Credit Income Summary BD4,600 Debit Net Income BD4,600 and Credit Capital BD4,600

The ledger of Rashid Travel Agency includes the following accounts with normal balances on December 31, 2020: Rashid, Capital BD25,000; Drawings BD3,200; Fees Earned BD4,000; Ticket Revenues BD16,000; ;General Expense BD24,600 :Required Prepare the necessary closing entry for net income or loss from the available information on December .31, 2020 (aäi 4) Debit Income Summary BD4,600 and Credit Capital BD4,600 Debit Capital BD4,600 and Credit Income Summary BD4,600 Debit Net Income BD4,600 and Credit Capital BD4,600

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 8SPB: UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis Warehouse used the allowance method to record the...

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Required: (a) What is the total estimated uncollectible amount of accounts receivable? (b) Prepare journal entries to record impairment loss of receivable in 2021 using Statement of Financial Position approach. (c) Prepare a partial statement of financial position as at 31 December 2021 on the accounts receivable. (d) Prepare journal entries to record impairment loss of receivable in 2021 assuming the balance of the Allowance for Impairment account is $7.300 (Cr.) prior to adjustment.
Using direct method, ZARA company decided on December 2, 2019 to write-off 370$ that owned to HH company Ltd. The journal entry to record this transaction is O a. Bad debt expense 370 Account receivable 370 O b. Bad debt expense 370 Cash 370 Oc Bad debt expense 370 C. Allowance for doubtful account 370 O d. Cash370 Bad debt expense 370
Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the journal entry required by Albert Trading in this situation.
Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that $68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable.
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.
Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis Warehouse used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20--: Selected accounts and beginning balances on January 1, 20--, are as follows: REQUIRED 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post to the appropriate selected accounts. 3. Determine the net realizable value as of December 31, 20--.
Data relating to the balances of various accounts affected by adjusting or closing entries appear below . Please journalize the missing entries. Uneraned Rent at 1/1/2019 was $5,300 and at 12/31/2019 it was $8,000. The records indicate cash receipts from rental sources during 2019 amounted to $42,500, all of which was credited to Unearned Rent Account. Prepare the missing adjusting entry. Allowance for Doubtful Accounts on 1/1/2019 was $50,000. The balance in the Allowance account on 12/31/2019 after making the annual adjusting entry was $58,000 and during 2019 bad debts written-off amounted to $30,000. Journalize the missing adjusting entry. Accumulated Depreciation-Equipment at 1/1/2019 was $210,000. At 12/31/2019, the balance of the account was $260,000. During 2019, one piece of equipment was sold. The equipment had an original cost of $40,000 and was 75% depreciated when sold. Journalize the missing adjusting entry. Retained earnings at 1/1/2019 was $140,000 and at…
The following is the trial balance of Aroro Enterprise as at 31 August 2019 (48400+100) Particulars Debit (RM) Credit (RM) 48,400 Capital Drawings Trade receivables Ac-tecaNables Trade payables Sales 3,500 9,000 Ac-payable 3500 12,500 40,400 Purchases Sales returns Purchases returns Wages and salaries E Discounts allowed Discounts received Provision for doubtful debts Insurance 31,000 300 250 (5,600 120 enses zmings ability equity 200 300 700 2,400 (950 (350 10,000 3,000 20,000 Inventory as at 1 September 2018 Utilities revenye Rates Premises Fixtures and fittings Motor van Cash in hand 330 Cash at bank 14,800 102,050 TOTAL 102,050 = 3,300-160 - 3900 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took…
PreparPrepare on December 31, 2021, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $ 25 comma 000; Accounts Receivable, $ 114 comma 000; Allowance for Doubtful Accounts, $ 240; Merchandise Inventory, $ 16 comma 000. The company uses the allowance method and the balance sheet approach. (e on December 31, 2021, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $ 25,000; Accounts Receivable, $ 114,000; Allowance for Doubtful Accounts, $ 240; Merchandise Inventory, $ 16,000. The company uses the allowance method and the balance sheet approach.
Donald , owner of Dallas Company , begin accounting for bad debts expense . Assume that Dallas Company has total revenues of $ 158,000 during 2019 and the Accounts Receivable balance on December31 2019 , is $ 84,000Assume that Dallas Company has one account receivable of $ 6,850 determined to be uncollectable , what journal entrymadewrite off the uncollectable account ?