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Veronika [31]
3 years ago
8

On June ​1, High Performance Cell Phones sold 19,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard

times and on July15 paid only $ 5,000 of the account receivable. After repeated attempts to​ collect, High Performance finally wrote off its accounts receivable from Anthony on September 5. Six months​ later, March ​5, High Performance received Anthony's check for $ 14,000 with a note apologizing for the late payment.
REQUIREMENTS

1. Journalize the transactions for High Performance Cell PhonesHigh Performance Cell Phones using the direct​ write-off method. Ignore Cost of Goods Sold.

2. What are some limitations that High Performance will encounter when using the direct​ write-off method?
Business
1 answer:
Naily [24]3 years ago
7 0

Answer and Explanation:

The Journal entries are shown below:-

1. Anthony Trucking Dr, $19,000

           To Sales A/c $19,000

(Being the sales made is recorded)

2. Bank Dr, $5,000

           To Anthony Trucking $5,000

(Being cash received is recorded)

3. Wrote off A/c Dr, $14,000

              To Anthony Trucking $14,000

(Being Account receivable write off the balance  is recorded)

4. Bank Dr, $14,000

            To Wrote off $14,000

(Being cash received is recorded)

2. High Performance 's direct write-off approach would face drawbacks because it breaches the matching principle. The matching theory involves be matching the spending of uncollectible accounts with the relevant revenues. Here uncollectible amount is treated as a bad debt expense. The written off amount is treated as uncollectible amount by the customer

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Answer:

The correct answer is (D)

Explanation:

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3 0
3 years ago
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 2,500 units at $5 Feb. 17 Purchase 3,3
Alenkasestr [34]

Answer:

ending inventory using FIFO = $11,700

ending inventory using LIFO = $7,500

ending inventory using average method = $9,435

Explanation:

date         item                               units             price             total

Jan. 1        beginning inv.             2,500             $5             $12,500    

Feb. 17     purchase                      3,300             $6             $19,800

July 21      purchase                     3,000             $7             $21,000

Nov. 23    purchase                      1,200             $8              $9,600

total                                              10,000                             $62,900

Dec. 31     ending inv.                   1,500                              

ending inventory using FIFO = (1,200 x $8) + (300 x $7) = $11,700

ending inventory using LIFO = 1,500 x $5 = $7,500

ending inventory using average cost = 1,500 x $6.29 = $9,435

5 0
3 years ago
A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as?
mylen [45]

A decrease in the inventory account during the year should be reported on the statement of cash flows as in financing activities as a use of funds.

What is in a cash flow statement?

On the cash flow statement, the entire amount of cash and cash equivalents that enter and exit a business are displayed. The CFS focuses on a company's ability to manage its cash, particularly how successfully it produces cash flow. The income statement and balance sheet both receive information from this financial statement.

What is financing activities in cash flow statement?

The cash flow statement's financing activity describes a company's capacity to raise capital and return it to investors via capital markets. The issuance and sale of additional shares of stock, as well as the growth, addition, and modification of existing debt, are also included in these acts. This list also includes dividend payments made in cash.

Learn more about cash flow statement: brainly.com/question/15278261

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6 0
2 years ago
Please help me asap!!!
melomori [17]

Answer:

Finder's fee. good luck dude

6 0
2 years ago
On December 31, Year 1, a publicly traded entity identified a tax position that will result in a $100,000 tax benefit that quali
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Answer:

C $30,000

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. A $30,000 result has a 35 percent chance of occurring, but the entity cumulatively has a 55 percent chance of receiving at least a $30,000 tax benefit. As a result, $30,000 is the appropriate amount to recognize.

7 0
3 years ago
Read 2 more answers
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