Question
1).TechGate has received a customer payment in the amount of $5,000 with no remittance advice. The customer has three outstanding invoices each in the amount
1).TechGate has received a customer payment in the amount of $5,000 with no remittance advice. The customer has three outstanding invoices each in the amount of $5,000. What would be the next step to ensure that TechGates AR records and the customers AP records are in alignment with each other?
-Apply the payment to the oldest invoice
-Split the payment between the three open invoices
-Contact the clients accounting department and request specific remittance advice, and apply the -payment based on their response
2).A bankrupt customer has notified TechGate they will not be able to pay their outstanding invoice of $15,000. TechGate maintains a contra-asset Allowance for Doubtful Accounts that it updates on a monthly basis with a balance of $25,000. How should we record the write-off of the invoice?
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-Debit Bad Debt Expense $15,000 and Credit Accounts Receivable $15,000
-Debit Allowance for Doubtful Accounts $15,000 and Credit Bad Debt Expense $15,000
-Debit Allowance for Doubtful Accounts $15,000 and Credit Accounts Receivable $15,000
-Debit Accounts Receivable $15,000 and Credit Allowance for Doubtful Accounts $15,000
3). What is one potential application of Classes used in Quickbooks?
To record Assets
To track Equity
To report on amounts owed from customers
To report on profitability outside of the profit & loss statement
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