What is the normal journal entry when writing-off an account as uncollectible under the allowance method?
a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable.
b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense.
c. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts.
d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
Answer: a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable.
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Zelienople Co reported the following information at December 31, 2016: Preferred stock, $10 par, 5,000 shares authorized, cumulative $ 50,000 Common stock, $1 par, 500,000 shares authorized 200,000 Additional paid-in capital—Common 25,000 Retained earnings 75,000 Total contributed capital and retained earnings $350,000 Less: Treasury stock (400 shares at cost) 5,000 Total stockholders' equity
$345,000 The number of shares of common stock issued is a. 5,000. b. 200,000. c. 500,000. d. 550,000.
What criteria must sales transactions meet in order for the seller to recognize revenues before collecting cash?
a. The revenues must be earned (the firm must have achieved substantial performance). b. The amount to be received must qualify as an asset (there must be a future economic benefit and the amount must be measured with sufficient reliability). c. The firm must have a reasonable expectation that it will collect the amount owed from the customer. d. all of the above e. none of the above
Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and begins to operate its own rental store
This results in its retail partners filing several lawsuits against the company. This scenario is an example of__________. Fill in the blanks with correct word.
Meredith has a vacation rental house in the Sierra Mountains. During the year, she and her immediate family used the house for 12 days for a personal vacation. Meredith spent two more weekends (4 days in total) repairing the deck. Meredith also rented her house (at fair value) to her brother and his family for 9 days (in addition to her personal use). The house was rented for 180 days. How should the cabin be categorized this year for tax purposes? Explain your answer.
What will be an ideal response?