Answer:
(1) Recognition of revenue on account.
The accounting record a sale as usual.
(2) Collection of cash from accounts receivable.
The accounting records the accrued revenues as usual.
(3) Recognition of uncollectible accounts expense through a year-end adjusting entry.
Based on experience or other actors, the company considers a portion of their sales revenecue (or assets i nthe balance heet) to be ficticional.
(4) Write-off of uncollectible accounts.
The accouning simply decrease the acc receivalues and then, it proceeds with the credited agains the allowance.
Explanation:
Answer:
Cash $10,430
Cash equivalents $20,400
Explanation:
Calculation to determine the amount reported as CASH on December 31
Using this formula
Cash = Cash in bank + Petty cash + Check from customer + money order
Let plug in the formula
Cash = $8,540 + $250 + $1,350 + $290
Cash = $10,430
Calculation to determine the amount reported as CASH EQUIVALENTS on December 31
Using this formula
Cash equivalents = Money market fund + Treasury bills
Let plug in the formula
Cash equivalents=$10,400+$10,000
Cash equivalents= $20,400
Therefore the amount reported as Cash and Cash Equivalents on December 31 are:
Cash $10,430
Cash equivalents $20,400
Answer:
Please find the complete question in the attached file.
Explanation:
