• Quiz
    write off method c. Percent of sales method d. Percent of accounts receivable method 6. Assuming the use of allowance method, what is the effect of collection of account previously written off on the amortized cost of accounts receivable? a. Increase b. Decrease c...
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  • Principles of Accounting 1 chapter 9 notes
    expected proceeds from converting an asset into cash Writing off a Bad Debt: when specific accounts are identified as uncollectible, they are written off against the allowance for doubtful accounts the write off does not affect realizable value of accounts receivable, total assets, and net...
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  • Acc 205 Week Two Exercise Assignment Revenue and Expenses
    written off |29,000 | |Collections on accounts that were previously written off |2,700 | Instructions a. Prepare journal entries to record the sales- and receivables-related transactions from 19X3...
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  • Chapter 7 Acc557
    realizable value. (c) The company should account for the collection of the specific accounts previously written off as uncollectible as follows: ∑ Reinstatement of accounts by debiting Accounts Receivable and crediting Allowance for Doubtful Accounts. ∑ Collection of accounts by debiting Cash and crediting...
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  • Alcatel
    31, 2001 and 2002. Four journal entries are required to reconcile the two T-accounts: one to record sales, one to record the collection of trade receivables, one to record the write-off of trade receivables, and one to record bad debt expense.    Analysis  f. Refer to the...
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  • Chapter 7 Solutions
    balance sheet and attempts to value the accounts receivable at their net realizable value. (c) The company should account for the collection of the specific accounts previously written off as uncollectible as follows: Reinstatement of accounts by debiting Accounts Receivable and crediting...
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  • Acc 100 Exam Review
    with the Allowance Method - Dr. Allowance for Doubtful Accounts - Cr. A/R Recovery of previously written-off accounts: - If person decided to pay and wants to restore credits (2 journal entries) o Dr. A/R o Cr. Allowance for Doubtful Accounts [to reverse original write-off] o Dr. Cash o Cr. A/R [to...
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  • Written Assignment #4
    , and September, and the cash balance at the end of each month. Supporting schedules should be prepared for estimated collections on receivables, estimated merchandise purchases, and estimated payments for operating expenses and of accounts payable for merchandise purchases...
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  • tests on accounting
    previously written off affect accounts receivable and allowance for uncollectible accounts? Dr Account Receivable Cr Allowances… Dr Cash Cr Account Receivable (no change in AR, Cr Allowances) 79. The following accounts were abstracted from Roxy Co.`s unadjusted trial balance at December 31...
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  • Chapter 8 Auditi2
    , 2006 P130,000 Provision for doubtful accounts (P9,000,000 x 2%) 180,000 Recovery in 2006 of bad debts written off previously 15,000 P325,000 Deduct write-offs for (P90,000 + P60,000) 150,000 Balance at December 31, 2006, before additional impairment loss P175,000 Increase in...
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  • Accounting Notes
    doubtful accounts 550 Accounts receivable 550 There is no effect on the income statement from writing off an account because the bad debt expense was previously recognized as an estimate in the period of sale. Collection of an Account previously written off: If a collection is made on a...
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  • Intermediate Accounting 14th Chp7
    bad debts based on the balance in the trade accounts receivable account. The method focuses on the balance sheet and attempts to value the accounts receivable at their net realizable value. (c) The company should account for the collection of the specific accounts previously written off as...
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  • Jet2 Task2
    probably related to a sales revenue decrease as indicated by 600 fewer bikes being sold. There was a 3.1% increase in raw materials inventory and overall current assets increased by 16.5%. The increased cash flow could be due to improvement in collections on accounts receivable or more cash sales.  There...
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  • Capital Budgeting Decison
    ) Collection of a cash dividend c) Payment of a dividend previously declared d) Purchase of land in exchange for a long-term note payable e) Issued common stock for cash f) Sale of equipment for cash g) Purchase of a patent for cash h) Sales of a short-term investment for cash i) Collection of an account...
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  • Study Guide
    | |- Write Offs |+ Bad Debt Expense | | |End | |Accounts Receivable (A) Gross | |Start |- Write offs | |+ Sales (credit, cash) |- Cash Collections | |End...
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  • Chapter 7 revenue and collection
    deposit actually in a bank statement for the day posted in the customers' accounts. 7.9 The account balances in a revenue and collection cycle include: Cash in bank Accounts receivable Allowance for doubtful accounts Bad debt expense Sales revenue Sales returns, allowances, discounts...
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  • Cash & Ar Problems
    debt expense. Journal entry for writing off an account. Journal entry for collection of an account previously written off. Valuation of short-term receivables. Bad debt provision and the matching concept. Bad debts as a percentage of sales. Bad debts as a percentage of sales. Bad debts as a percentage...
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  • Intermediate Accounting
    during 2007 Accounts receivable deemed worthless and written off during 2007 $ 8,000 400,000 9,000 57. 58. As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December...
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  • Student
    Intel’s balance sheet may well have been affected by other | | |transactions in addition to those included in this simplified model. Some accounts receivable may have been reclassified as notes| | |receivable, others may have been written off as uncollectible accounts or...
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  • Cas Essays
    previously written off would Answer Explanations A: Answer A is incorrect because a collection of a previously written off account under the allowance method has no effect on net income. B: This answer is incorrect.  Refer to the correct answer explanation. C: This answer is incorrect.  Refer...
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