The Fortune Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information, Accounts receivable on December 31 2017, RO380,000,Required balance in Allowance for Doubtful Accounts account on December 31, 2017 RO3,000,Existing balance in Allowance for Doubtful Accounts account on December 31, 2017 RO2,500,The journal entry to recognize uncollectible accounts expense on December 31, 2017 is: a. Dr. Accounts Receivable 2500 Cr Allowance for Uncollectible Accounts Expense 2500 b. Dr Uncollectible Accounts Expense 3000 Cr Allowance for Doubtful Accounts 3000 c. Dr. Accounts Receivable 2500 Cr Uncollectible Accounts Expense 2500 d. Dr Uncollectible Accounts Expense 500 & Cr Allowance for Doubtful Accounts 500

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A: Whenever a sale is made on credit basis, debtors occur. When a debtor fails to pay the amount, it…

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Q: Q4. During the 2019, a company made a credit sale for OMR 305,000. At 31 December 2019 allowance for…

A: Answer) Journal Entry Date Account Titles and Explanation  Debit  Credit 31-Dec-19…

Q: The following information is also available: Beginning balance of Accounts Receivable P 500,000 Net…

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Q: Prepare the journal entry to record the write-off

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

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A: Accounts Receivable is the money owed to a company by its customers. It happens because of credit…

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A: Net realizable value of the company’s accounts receivable = accounts receivable - Allowance for…

Q: Instructions

A: 1. The adjusting entry on December 31st 2021 to recognize the bad debts expense would require a…

Q: Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible…

A:

Q: Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO…

A: Answer: b- (1&iii)

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A: Uncollectible amount = Amount due x Estimated percentage uncollectible

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A: Estimated bad debts = 1/2 percent of total revenue on account = $273,205 x 1/2% = $1,366

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A: The sales which are of credit sales could have a chance of not being paid. It is called bad debts. A…

Q: Applying the allowance method to account for uncollectibles The Accounts Receivable balance and…

A: Allowance method is in accordance with the matching principles where in bad debts are charged to…

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A: Uncollectible accounts expense  on December 31 2017 =  Required balance in Allowance for Doubtful…

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A: Assets are the rights and resources being held by the business. It can be current assets or non…

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A: Accounts receivable turnover ratio indicates how many times the customers pay to the firm in an…

Q: Moose Corporation had a 1/1/15 balance in the Allowance for Doubtful Accounts of P 12,000. During…

A: Allowance for doubtful debt: It can be defined as a contra-asset account that is maintained for…

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A: The allowance for doubtful accounts is contra asset account for accounts receivable. The allowance…

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A: Answer:   Option b

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A:

Q: On December 31, 2017, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and…

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A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

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Q: The Garware Company uses allowance method to recognize uncollectible accounts expense. It provides…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

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A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

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A: Given information is: Accounts Receivable = $673,200 Allowance for uncollectible accounts = $24010

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A: Accounts Receivable: It is the money owed to the company by its customers. This happens because of…

Q: allowance method to recognize uncollectible accounts expense

A: Under allowance method, uncollectible accounts expense is debited and allowance for doubtful debts…

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A: The financial accounting term allowance method refers to the process of an uncollectible account…

Q: Ray Company’s trial balance at Dec. 31, 2018 included the following accounts:…

A: Accounts Receivable: It is the money owed to the company by its customers. This happens because of…

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A: (a) Prpare the adjusting entry to record the bad debt expense:

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A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.