At the end of 2020, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful
Question:
At the end of 2020, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2021, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.
Instructions
a. Prepare the journal entry for Aramis Company to write off the Ramirez receivable.
b. What is the net amount expected to be collected of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable?
c. What is the net amount expected to be collected of Aramis Company’s accounts receivable after the write-off of the Ramirez receivable?
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Allowance for Doubtful Accounts 6000 Accounts Receivable 6000 b Accounts Receivable 800000 ...View the full answer
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel
