Let us assume that the company Taylor Industries bought merchandise from X company. Taylor Industries will record Accounts Payable while X company will record Accounts Receivable.

Since Taylor Industries will no longer be able to pay off its Account Receivable, X company will have to write off the Accounts Receivable. Writing off Accounts Receivable can be done in two ways.

1) Allowance method:
Bad Debt Expense xxxxx
Allowance for Doubtful accounts xxxxx
Writing Off Bad Debt:
Allowance for Doubtful Accounts xxxxx
Accounts Receivable xxxxx

2) Direct Write-off method.
Bad Debt Expense xxxxx
Accounts Receivable xxxxx

In the books of Taylor Industries, it must recognize the cancellation of the Accounts Payable from the transaction with X company.

Accounts Payable xxxxx
Other Income xxxxx

3 0

4 years ago

Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou

Slav-nsk [51]

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.

7 0

3 years ago

Carie opted to exercise her May option on April 3rd and received $1,750 in exchange for her shares. She must have owned a(n):

olganol [36]

Answer:

the correct answer is C. American put.

good luck

5 0

3 years ago

Oriole Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January

Solnce55 [7]

Answer:

Transaction 1

Debit : Cash ($1,000 x 1,000) $1,000,000

Credit : Bond Payable $1,000,000

Transaction 2

Debit : Cash ($854,000 x 101.30%) $865,102

Credit : Bond Payable $865,102

Transaction 3

Debit : Cash ($281,000 x 99%) $278,190

Credit : Bond Payable $278,190

Explanation:

On each issuance date recognize a cash inflow and a liability - Bond Payable to the extent of the amount paid on issue.

5 0

3 years ago