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WARRIOR [948]
3 years ago
6

Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits th

e Bad Debts Expense account and credits the Allowance for Doubtful Accounts. The uncollectible accounts are later written off with a debit to the Allowance for Doubtful Accounts. On December 1, after making a concerted effort, management determines that it will be unable to collect $1200 owed to it by one of its customers. This company uses the allowance method to account for uncollectible accounts. Prepare the necessary December 1 journal entry to write off this $1,200 uncollectible account journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction list Journal entry worksheet On December 1, after making a concerted effort, management determines that it will be unable to collect $1,200 owed to it by one of its customers. This company uses the allowance method to account for uncollectible accounts.
Business
1 answer:
Crank3 years ago
8 0

Answer:

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

Explanation:

When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:

A credit to Accounts Receivable (to remove the amount that will not be collected)

A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)

Therefore the JOURNAL ENTRIES for the $1,200 uncollectible debt will be

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

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A  Forward transaction in the foreign exchange market requires delivery of foreign exchange at some future date.

A forward contract, or simply a forward, is a sort of derivative instrument in finance. It is a non-standard contract between two parties to buy or sell an asset at a specific future time at a price agreed upon at the time of the contract's conclusion.

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2 years ago
Heidebrecht Design acquired 20% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $800,000 for the
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Answer:

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4 0
3 years ago
If you put $100 into a bank account that earns five percent interest per year, what is the formula you should use to determine t
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Future value equals the present value multiplied by one plus the rate of interest in decimals.

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3 0
3 years ago
Are these competitive markets?
ruslelena [56]
I believe it’s A I hope this helps!
5 0
3 years ago
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies sug
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Answer:

The present yearly net operating income or loss is  - $90,000

Explanation:

The computation of present yearly net operating income or loss is shown below:

Net income / Net loss = Sales - Variable cost - Fixed cost

The sales - variable cost is equal to contribution

Than, Contribution - fixed cost = net income

where,

Sales = Present Sales volume × Selling price

         = 15,000 × $70

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Variable cost = Present volume × Variable cost per unit

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And, fixed cost = $540,000

So, net income / loss = $1,050,000 - $600,000 - $540,000

                                   = - $90,000

Hence, the amount shows negative which means the company has suffered a loss of $90,000

Thus, the present yearly net operating loss is  - $90,000

8 0
3 years ago
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