Question

Milton Company's unadjusted trial balance on 12/31/20X1 shows an accounts receivable from a non-U.S. customer. The...

Milton Company's unadjusted trial balance on 12/31/20X1 shows an accounts receivable from a non-U.S. customer. The receivable arose from a sale denominated in Euros. Since the receivable was recognized, the Euro value has risen. Milton should:

Multiple Choice

  • debit "accounts receivable" and credit "sales revenue".

  • debit "foreign exchange loss" and credit "accounts receivable".

  • debit "accounts receivable and credit "foreign exchange gain".

  • debit "sales revenue" and credit "accounts receivable".

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Rate the answer

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company's year-end unadjusted trial balance shows accounts receivable of $109,000, allowance for doubtful accounts of...
A company's year-end unadjusted trial balance shows accounts receivable of $109,000, allowance for doubtful accounts of $600 (credit), & sales of $325,000. Uncollectibles are estimated to be 2.5% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectible. 2. Assume the same facts as in PART A except that the company estimates uncollectible as 2.0% of sales. Prepare the December 31 year-end adjusting entry for uncollectible.
1). Warner Company’s year-end unadjusted trial balance shows accounts receivable of $117,000, allowance for doubtful accounts...
1). Warner Company’s year-end unadjusted trial balance shows accounts receivable of $117,000, allowance for doubtful accounts of $780 (credit), and sales of $460,000. Uncollectibles are estimated to be 1.50% of accounts receivable. A. Prepare the December 31 year-end adjusting entry for uncollectibles. 2)Warner Company’s year-end unadjusted trial balance shows accounts receivable of $103,000, allowance for doubtful accounts of $640 (credit), and sales of $320,000. Uncollectibles are estimated to be 1% of sales. A. Prepare the December 31 year-end adjusting entry...
Patagonia Corp.’s unadjusted trial balance included the following: Debit           Credit          Accounts receivable.........................................
Patagonia Corp.’s unadjusted trial balance included the following: Debit           Credit          Accounts receivable..................................................................      $140,000          Allowance for doubtful accounts........................................... $890          Sales............................................................................................. 425,000          Sales returns and allowances.................................................           10,000 Instructions a)      Prepare adjusting journal entries assuming that the estimate of uncollectibles is determined by using 4% of gross accounts receivable. b)     Prepare adjusting journal entries assuming that the estimate of uncollectibles is determined by using 1.5% of net sales.
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan...
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 1,690,000 yen. The exchange rate was $.00856 per yen on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $.00862. Kagome paid in full on January 12, when the exchange rate was $.00880. On December 31, Higgins should prepare the following journal entry: Multiple Choice Debit Sales $101; credit Foreign Exchange Gain...
1. Kingbird Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit...
1. Kingbird Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable $55,400 Allowance for doubtful accounts 5,960 Net sales $1,262,800 Kingbird Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2020. Bad debt expense for 2020 $ 3. Waterway Co. provides for doubtful accounts based on 2% of gross accounts receivable, The following data are available for 2020. Credit sales during 2020 $4,351,800...
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31,...
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0   Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520   Utilities Expense 8,595 Depreciation Expense 144,000   Interest Expense 6,840 _______      Totals $1,522,565 $1,522,565 Adjusting Items: 1....
The December 31, 2019 unadjusted trial balance of a company disclosed the following balances: Accounts Receivable...
The December 31, 2019 unadjusted trial balance of a company disclosed the following balances: Accounts Receivable Allowance for Doubtful Accounts Sales Sales Returns and Allowances $200,000 DR $1,000 CR $710,000 CR $10,000 DR Additionally, 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. Required a) b) c) Provide the entry for the...
LM Company's December 31, 2020 unadjusted trial balance reported the following accounts: Accounts Payable ............ $37,000...
LM Company's December 31, 2020 unadjusted trial balance reported the following accounts: Accounts Payable ............ $37,000 Accounts Receivable ......... $61,000 Accumulated Depreciation .... $33,000 Cash ........................ $20,000 Common Stock ................ $54,000 Cost of Goods Sold .......... $47,000 Equipment ................... $71,000 Income Tax Expense .......... $12,000 Interest Expense ............ $16,000 Inventory ................... $70,000 Investment Revenue .......... $56,000 Mortgage Payable ............ $40,000 Prepaid Insurance ........... $26,000 Retained Earnings ........... $42,000 (at January 1, 2020) Sales Revenue ............... $95,000 Trademark ................... $22,000 Unearned...
Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts...
Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts have normal balances. Accounts Receivable $ 7,500 Accounts Payable 650 Cash 3,700 Service Revenue 14,500 Common Stock, $2 par, 10,000 authorized 2,000 Common Stock, add’l pd in capital 7,000 Equipment, at cost 12,900 Accumulated depreciation 2,300 Depreciation Expense 700 Land 5,800 Notes Payable, Due 2021 8,000 Investment Securities 1,200 Prepaid Rent 1,400 Rent Expense 2,400 Retained Earnings, January 1, 2018 5,850 Salaries and Wages...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts receivable $200,000 Allowances for uncollectible accounts $12,000 CR Credit sales in 2019 $700,000 Credit sales return in 2019 $100,000 In addition, the firm has given up trying to collect a $9,500 receivable from a customer who recently declared bankruptcy. Linn's management has not yet written off the amount but intends to do so before the books are closed for the year. Required: I. Assuming...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT