Question

Assignment:

1. Present entries to record the following for a business that uses the Allowance Method:

1. Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500
2. In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off.
3. Six months later the $610 is reinstated and payment of that amount received

2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19
3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b)
4. Record the entry for the reinstatement of the account written off in (3) under the direct write-off method

Assignment:

Record the following transactions, in general journal for, for the ABC Company (Payee) and the XYZ Company (Maker). Make all the necessary entries for the 90-day period on both sets of books.

November 1: ABC received a $5,000, 8%, 90 day note dated November 1 from XYZ Company ON ACCOUNT.

Answer 1

Journal entries:

entry "c" can also be done as

Net Realizable of A/R reported in Balance sheet on 31/12/2019:

Note:(Taccount for 2019 of contra account)

Direct Method Entry for 1b

Direct Method Entry for reinstatement

Assignment: