Question
Boone, Inc. previously wrote off $300 on an account from Mr. Green. During the current period, Mr. Green later pays $200 of the amount
Boone, Inc. previously wrote off $300 on an account from Mr. Green. During the current period, Mr. Green later pays $200 of the amount owed Boone? How should Boone Inc. record the receipt of the payment from Mr. Green? Select one: a. Dr. Accounts Receivable $200 Cr. Allowance for Doubtful Accounts $200 and Dr. Cash $200. Cr. Accounts Receivable $200 b. Dr. Allowance for Doubtful Accounts $200. Cr. Cash $200 and Dr. Accounts Receivable $200. Cr. Cash $200. c. Dr. Accounts Receivable $300. Cr. Allowance for Doubtful Accounts $300 And Dr. Cash $300. Cr. Accounts Receivable $300 d. None of the above Boone, Inc. sells specialty made shirts to Hanes, Co on account for $20,000 terms 2/10, n/30. What is the journal entry to record this transaction on Boone's books? Select one: a Dr. Sales Revenue $20,000. Cr. Accounts Receivable $20,000 b. Dr. Accounts Receivable $19,600. Cr. Sales Revenue $19,600 c. Dr. Accounts Receivable $20,000. Cr. Sales Revenue $20,000 d. Dr. Notes Receivable $20,000. Cr. Sales Revenue $20,000 Boone, Inc.'s accounts receivable due from customers is $1,000. Management estimates that $50 of these receivables may not be collected? Boone uses the allowance method to account for its uncollectible accounts. What is the journal entry required to reflect management's estimate? Select one: a. Dr. Sales Revenue $50. Cr. Accounts Receivable $50 b. Dr. Bad Debt Expense $50. Cr. Allowance for Doubtful Accounts $50 c. Dr. Allowance for Doubtful Accounts $50. Cr. Accounts Receivable $50 d. Dr. Bad Debt Expense $50. Cr. Accounts receivable $50
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