Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year. The business activity for each type of adjusting entry is explained as follows: Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period. Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period. Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period. Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period. Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period. To indicate: The effect of the omitted journal entries .

Question

At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $743. During the year, $344 of previously written off accounts were reinstated and accounts totaling $756 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below. a.$331 b.$756 c.$344 d.$743

Answer 1

Question

Chapter 3, Problem 23CE

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.

Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.

Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.

Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.

Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.
To indicate:

The effect of the omitted journal entries.

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At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $743. During the year, $344 of previously written off accounts were reinstated and accounts totaling $756 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below. a.$331 b.$756 c.$344 d.$743

Assignment: 1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method

Assignment: 1. Present entries to record the following for a business that uses the Allowance Method: a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500 b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off. c) Six months later the $610 is reinstated and payment of that amount received 2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/19 3. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b) 4. Record the entry for the reinstatement of the account written off in (3) under the direct write- off method Assignment:…