At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful
Question:
At the end of 2022, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200.
a. Prepare the journal entry to record the write-off.
b. What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
Question Posted:
Students also viewed these Business questions
-
At the end of 2015, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2016, the company learns that its receivable from Megan Gray is...
-
At the end of 2021, Larkspur Co. has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200. On January 24, 2022, it is learned that the company's receivable from Madonna...
-
At the end of 2020, Accustart Corp. has accounts receivable of $472,300 and an allowance for doubtful accounts of $26,400. On January 24, 2021, Accustart learns that its $10,800 receivable from...
-
Suppose that a 20-year bond pays $4 coupon once a year, and its yield rate is 6%. The bond has write-down of $0.49 for the first year. Calculate the write-down amount for the third year. Round the...
-
Use the Rule of 70 to calculate the growth rate that leads to a doubling of real GDP per person in 20 years.
-
What view is a labor union likely to hold on each of the following issues? (a) A quota on imported products (b) Free trade (c) A decrease in the minimum wage
-
Differentiate between open-end credit and closed-end credit.
-
The completed financial statement columns of the worksheet for Hubbs Company are shown below. Instructions (a) Prepare an income statement, a retained earnings statement, and a classified balance...
-
Consider an European call option on a non-dividend paying stock with strike price K = $55 and maturity T = 3 months. The stock price is $54, the continuously compounded risk-free rate for all...
-
10-kg of R-134a at 300 kPa fills a rigid container whose volume is 14 L. Determine the temperature and total enthalpy in the container. The container is now heated until the pressure is 600 kPa....
-
Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1...
-
Under IFRS: a . The entry to record estimated uncollected accounts is the same as GAAP. b . It is always acceptable to use the direct write-off method. c . All financial instruments are recorded at...
-
A package weighing x pounds costs (x) dollars to mail to a given location, where (x) = 3.75x. (a) Evaluate (3).(b) Describe what 3 and the value (3) mean in part (a), using the terms independent...
-
Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future periods: Briefly explain why. + Increase decrease - or no change...
-
Al Harrington's Wacky Waving Inflatable Arm Flailing Tubeman Warehouse and Emporium recorded the following information from its lunch period: # of Customers 100 # of Servers 4 # of Seats 50 Total...
-
A basketball player makes a jump shot. The 0.610-kg ball is released at a height of 2.03 m above the floor with a speed of 7.51 m/s. The ball goes through the net 3.10 m above the floor at a speed of...
-
We can compare supplier's performance based on the total cost of ownership. What is encompassed by total cost of ownership? How does a company understand all of the costs? How might higher...
-
A bar is supported with a pin support as shown. Determine the maximum force, F, that could be applied to the bar when considering each type of stress listed below. The dimensions of the bar are shown...
-
Explain the difference between operating expenditures and capital expenditures during an asset's useful life and describe the accounting treatment of each.
-
Wholesalers Ltd. deals in the sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales. The firms current credit...
-
Leister Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $15,540. All sales are subject to a 5% sales tax. Compute sales taxes payable, and...
-
Emporia State University sells 4,000 season basketball tickets at $180 each for its 12-game home schedule. Give the entry to record (a) The sale of the season tickets and (b) The revenue earned by...
-
Yahoo! Inc.s 2006 financial statements contain the following selected data (in thousands). Current assets ... $3,449,533 Current liabilities . $1,204,052 Total assets .... 10,831,834 Total...
-
The Discount on Bonds Payable account is: A. A contra equity. B. An expense. C. A contra liability. D. A contra expense. E. A liability.
-
A companys comparative statements are given below. Please conduct the following analyses (hint: use of a spreadsheet is recommended for ease of computation): a. Horizontal analysis (trend analysis)...
-
4. In what order are the four primary financial statements prepared? Statement of stockholders' equity > Income statement > Balance sheet > Statement of cash flows Balance sheet> Income statement >...
Study smarter with the SolutionInn App