Question
38 Sheffield Corp. receives a $10600, 6-month, 9% promissory note from Cheyenne Corp. in settlement of an open accounts receivable. What entry will Sheffield Corp.
38 Sheffield Corp. receives a $10600, 6-month, 9% promissory note from Cheyenne Corp. in settlement of an open accounts receivable. What entry will Sheffield Corp. make upon receiving the note?
Notes Receivable | 10600 |
| |
| Accounts Receivable-Cheyenne Corp. |
| 10600 |
Notes Receivable | 11077 |
| |
| Accounts Receivable-Cheyenne Corp. |
| 10600 |
| Interest Revenue |
| 477 |
Notes Receivable | 10600 |
| |
Interest Receivable | 477 |
| |
| Accounts Receivable-Cheyenne Corp. |
| 10600 |
| Interest Revenue |
| 477 |
Notes Receivable | 11077 |
| |
| Accounts Receivable-Cheyenne Corp. |
| 11077 |
37 An aging of a company's accounts receivable indicates that $10200 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $5000 credit balance, the adjustment to record bad debts for the period will require a
debit to Allowance for Doubtful Accounts for $5200.
debit to Bad Debt Expense for $10200.
debit to Bad Debt Expense for $5200.
credit to Allowance for Doubtful Accounts for $10200.
35 Blossom Company has a $182000 balance in Accounts Receivable and a $512 debit balance in Allowance for Doubtful Accounts at year end just prior to recording adjusting entries. Credit sales for the period totaled $1190400. How much is the amount of the bad debt adjusting entry if Blossom estimates that 1.5% of its receivables will be uncollectible?
$2730
$17856
$2218
$3242
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