Question

Provided below is a chronological log of a sale on credit made by Turner Co. to Dykes Inc. December 29, 2016 - Sold merchandise to Dykes, $2,000, terms 3/10, n/30. January 2, 2017 - Dykes paid half of the receivable and took the discount. December 31, 2019 - Dykes has failed to pay the receivable and Turner wrote Dyke's account off as uncollectible. December 31, 2021 - Dykes unexpectedly paid its debt to Turner in full, including 6% annual interest (not compounded, computed to the nearest month). Enter dollar amounts in the following form: $xx,xxx. What is the amount recorded as Accounts Receivable by Turner on December 29, 2016 if Turner uses the gross method? When Dykes paid the first half of the bill what account(s) were debited by Turner? If needed provide an additional account, else leave blank When the remaining receivable was written-off on December 31, 2021, by what dollar amount did the amount of cash expected to be received by Turner change? Upon the unexpected receipt of the amount owed by Dykes, how much does Turner record to Bad Debt Expense?

Answer 1

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Amount recorded as Accounts Receivable by Turner on December 29, 2016		$        2,000
(Since sale is for $2,000 and gross method following so no discount)
Dykes paid the first half of the bill what account(s) were debited by Turner
Cash Account
Sales Discount Account
by what dollar amount did the amount of cash expected to be received by Turner change
by $1,000 (Half of $2,000)
Upon the unexpected receipt of the amount owed by Dykes, how much does Turner record to Bad Debt Expense?
Zero, since full amount received