Question

Which of the following transactions changes the mix of only liabilities? a.Writing off accounts receivable as...

Which of the following transactions changes the mix of only liabilities?

a.Writing off accounts receivable as bad debt

b.Paying accounts receivable with cash

c.Financing the purchase of land with a long-term loan

d.Paying off accounts payables by raising a short-term loan

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Correct Answer is:

d.Paying off accounts payables by raising a short-term loan

a.Writing off accounts receivable as bad debt: This will have impact on Accounts Receivable as well which is an asset.

b.Paying accounts receivable with cash: This will have impact on Cash and Account Receivable, both are assets.

c.Financing the purchase of land with a long-term loan: Land impacted which is asset.

d.Paying off accounts payables by raising a short-term loan:

Journal for this will be:

Accounts Payable Debit

Short Term Loan Credit

Both above accounts are liabilities, and hence this will impact only liability.

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
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance:...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entries to record the cash recovered on Dec 15 are: Select one: A. 1. Debit Accounts Receivable, Credit Bad Debt Expense for $10,000; 2. Debit Cash, Credit Accounts Receivable for $10,000. B. 1. Credit...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance:...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entries to record the cash recovered on Dec 15 are: Select one: A. 1. Debit Accounts Receivable, Credit Bad Debt Expense for $10,000; 2. Debit Cash, Credit Accounts Receivable for $10,000. B. 1. Credit...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance:...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entry to write-off the uncollectible amount on Nov 15 is: Select one: A. Debit Bad Debt Expense $10,000; Credit Accounts Receivable $10,000 B. Credit Accounts Receivable $10,000; Debit Bad Debt Expense $10,000 C. Debit...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $440,000; allowance for uncollectible accounts at the beginning of the year, $33,000 (credit balance); credit sales during the year, $1,650,000; accounts receivable written off during the year, $24,000; cash collections from customers, $1,800,000. Assuming the company estimates that future bad debts will equal 11% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,250,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,150,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $450,000; allowance for uncollectible accounts at the beginning of the year, $34,000 (credit balance); credit sales during the year, $1,700,000; accounts receivable written off during the year, $25,000; cash collections from customers, $1,850,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
Harding Company Accounts payable $40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000...
Harding Company Accounts payable $40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 What is the amount of working capital? a.$238,000 b.$128,000 c.$203,000 d.$168,000
Part A. Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting...
Part A. Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,440 from Ian Kearns and wrote off the remainder owed of $3,810 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Ian Kearns and received $3,810 cash in full payment. Dec. 20-Reinstate Dec. 20-Collection Options: Accounts Receivable-Ian Kearns Allowance for Doubtful Accounts Bad Debt Expense...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $370,000; allowance for uncollectible accounts at the beginning of the year, $26,000 (credit balance); credit sales during the year, $1,300,000; accounts receivable written off during the year, $17,000; cash collections from customers, $1,200,000. Assuming the company estimates that future bad debts will equal 9% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate...
Privett Company Accounts payable $35,172 Accounts receivable 61,830 Accrued liabilities 6,449 Cash 18,199 Intangible assets 36,789...
Privett Company Accounts payable $35,172 Accounts receivable 61,830 Accrued liabilities 6,449 Cash 18,199 Intangible assets 36,789 Inventory 85,546 Long-term investments 93,954 Long-term liabilities 72,236 Marketable securities 37,578 Notes payable (short-term) 20,447 Property, plant, and equipment 668,167 Prepaid expenses 1,246 Based on the data for Privett Company, what is the amount of quick assets? a.$1,608,400 b.$55,777 c.$809,490 d.$117,607
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT