Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. Enter only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NFurst Co. uses the allowance method to account for uncollectible accounts expense. On June 20, Year 1, Furst wrote-off an uncollectible account in the amount of $2,000. On September 1, Year 1, the account was collected. How would the appropriate entries on September 1 affect the financial statements?AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?
(N) (N) (N) (N) (N) (N) (I)
On Sept. 1, Furst must first reinstate the written-off account. The reinstatement increases assets (accounts receivable) and decreases assets (increases the contra-asset allowance for doubtful accounts), with no overall effect on the financial statements. Next, Furst records collection of the receivable, which increases assets (cash) and decreases assets (accounts receivable), again with no overall effect on assets. The event is reported as a cash inflow for operating activities on the statement of cash flows.
You might also like to view...
When rights under a contract are transferred, this is called a delegation.
Answer the following statement true (T) or false (F)
A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand
A) community B) channel C) association D) personality E) cluster
Evaluating your message is an important final part of the writing process. Identify two questions that you should ask yourself about a message to ensure that it attract a reader's attention. Then, list three types of phrases (and an example of each) you should avoid to ensure that your message is clear, concise, and effective
Which one of the following valences would lead to the highest degree of motivated effort?
A) 0 B) +50 C) -50 D) -100