Answer and Explanation:
The journal entries are shown below:
On December 31
Bad debt expense Dr $5,232 ($654,000 × 0.80%)
To Allowance for doubtful debts $5,232
(To record the bad debt expense)
On Feb 01
Allowance for doubtful debts Dr $327
To Account receivable $327
(To record the uncollectible amount)
On June 5
Account receivable $327
To Allowance for doubtful debts Dr $327
(To record the uncollectible amount)
On June 5
Cash Dr $327
To Account receivable $327
(To record the cash received)
In the given case the accounts were previously written off by debiting the Allowance for doubtful debts accounts now in order to revive these accounts receivable, we should Debit the Accounts Receivable and credit the Allowance for doubtful debts accounts. Hence the account to be credited is Allowance for doubtful debts accounts.
Hence the answer shall be Allowance for doubtful debts accounts
I would say all of them, only because you want to make sure that you're choosing the best account overall. My best guess, if that's not the answer, which it should be, would to be to look and see from your text, if it specifically mentions that any of these are not a part of a savings account. Nowadays, they all can be. It depends what bank you go to. But in Business classes, it might show that you a savings can't have one or more of these. For example, you usually see APR on other types of accounts. Not always savings. But for your grade level, and argument sake, I'd say all.
Answer:
$1,147.2
Explanation:
Given:
Principle amount deposited = $800
The rate of interest paid, r = 6.2% = 0.062
Duration, t = 7 years
Now,
The simple interest is calculated as:
Interest = Principle × Rate × Time
on substituting the respective values, we have
Interest = $800 × 0.062 × 7
or
Interest = $347.2
Therefore,
The total amount owed by the credit union = Principle + Interest
= $800 + $347.2
= $1,147.2