Question

The carrying amount of Accounts Receivable is $17,500 before the write off of a $2,500 account....

The carrying amount of Accounts Receivable is $17,500 before the write off of a $2,500 account. Assuming the allowance method is used,” what is the carrying amount of the Accounts Receivable after the write off?

Homework Answers

Answer #1

When the allowance method is used, following adjustment entry will be made for write off:

Date General Journal Debit Credit
a Allowance for doubtful accounts $2500
Accounts receivable $2500
(For writing off of uncollectibles)

After the above adjustment entry is made, Accounts receivable balance will be reduced by $2500. So, carrying amount of accounts receivable after write off will be:

Carrying amount after write off = $17500 - $2500 = $15000

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The two approaches to determining the credit loss expense on accounts receivable are the direct write-off...
The two approaches to determining the credit loss expense on accounts receivable are the direct write-off method and the allowance method. Indicate the method that corresponds to each description below by selecting the appropriate circle. Description Direct write-off Allowance 1. This method has the tax advantage of anticipating deductions. 2. This approach debits credit loss expense and credits accounts receivable at the time the uncollectibility of a specific account is established. 3. This method attempts to match credit loss expense...
43. An aging of a company's accounts receivable indicates that $13,000 is estimated to be uncollectible....
43. An aging of a company's accounts receivable indicates that $13,000 is estimated to be uncollectible. If the Allowance for Doubtful Accounts has a $2,400 debit balance before adjustment, the adjustment to record bad debts for the period will require a Question 43 options: debit to Bad Debts Expense for $15,400. debit to Bad Debts Expense for $13,000. debit to Bad Debts Expense for $10,600. debit to Allowance for Doubtful Accounts for $13,000. none of the above. 44. Fantastic Fashions...
Pepsi had accounts receivable of $200,000 and an allowance for uncollectible accounts of $8,500 just before...
Pepsi had accounts receivable of $200,000 and an allowance for uncollectible accounts of $8,500 just before writing off as worthless an accounts receivable from Pizza hut of $1,200. Compute the net realizable values of the accounts receivable that is reported on the balance sheet before the write-off and after the write-off.
Taylor, Inc. had accounts receivable of $320,000 and an allowance for doubtful accounts of $14,000 just...
Taylor, Inc. had accounts receivable of $320,000 and an allowance for doubtful accounts of $14,000 just before writing off as worthless an account receivable from Burton Company of $1,210. The net realizable value of the accounts receivable before and after the write-off were
The following information is available for Quality Book Sales’ sales on account and accounts receivable: Accounts...
The following information is available for Quality Book Sales’ sales on account and accounts receivable: Accounts receivable balance, January 1, 2016 $ 79,600 Allowance for doubtful accounts, January 1, 2016 4,930 Sales on account, 2016 561,000 Collection on accounts receivable, 2016 567,000 After several collection attempts, Quality Book Sales wrote off $2,960 of accounts that could not be collected. Quality Book Sales estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Required: a. Compute the following...
Moore, inc. had accounts receivable of $25,000 and an allowance for uncollectible accounts of $1,700 (credit)...
Moore, inc. had accounts receivable of $25,000 and an allowance for uncollectible accounts of $1,700 (credit) just before writing off as worthless an account receivable from Stuart company $150. The net realizable values of the accounts receivable before and after the write-off were:
Exercise 5-7B Establish an allowance for uncollectible accounts and write off accounts receivable (LO5-3, 5-4) During...
Exercise 5-7B Establish an allowance for uncollectible accounts and write off accounts receivable (LO5-3, 5-4) During Year 1, its first year of operations, a company provides services on account of $142,000. By the end of Year 1, cash collections on these accounts total $101,000. The company estimates that 25% of the uncollected accounts will be uncollectible. In Year 2, the company writes off uncollectible accounts of $9,225. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, Year...
Bryson Company has accounts receivable of $125,000 at October 31, 2020, and uses the allowance method...
Bryson Company has accounts receivable of $125,000 at October 31, 2020, and uses the allowance method to account for uncollectible receivables. Based on experience, it estimates that 8% of its receivables will be uncollectible. (a) What journal entry would Bryson make to record the estimated uncollectible amount assuming the company already has an existing $1,500 debit balance in its Allowance account? (b) What journal entry would Bryson make to record the write-off of a $750 receivable? (c) What journal entries...
1.Midas Company, which has an adequate amount in its Allowance for Doubtful Accounts, writes off as...
1.Midas Company, which has an adequate amount in its Allowance for Doubtful Accounts, writes off as uncollectible an account receivable from a bankrupt customer. This action will: a.Reduce total current assets b.Reduce net income c.Increase  total current assets d.Have no effect on total current assets e.None of the above Use the following information for the next question: Following is selected information for Fred Company, AFTER year-end adjusting entries: For year ended December 31: 2004 2003 Sales $5,000,000 $4,500,000 Bad Debts Expense...
When an account receivable that has previously been written off is later paid, under the allowance...
When an account receivable that has previously been written off is later paid, under the allowance method the correct accounting is to A.Dr. A/R Cr. Allowance for Doubtful Accounts Dr. Cash Cr. A/R B.Dr. A/R Cr. Cash Dr. A/R Cr. Allowance for Doubtful Accounts C.Dr. Cash Cr. A/R D.Dr. A/R Cr. Allowance for Doubtful Accounts Bailey Inc.'s books revealed the following data for 2020 after all adjustments were made: Cash sales $825,000 Sales returns (on credit sales) 35,000 Allowance for...