Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 2014, Extreme Fitness has adjusted balances of $900,000 in Accounts Receivable. On January 2, 2015, the company learns that certain customer accounts
On December 31, 2014, Extreme Fitness has adjusted balances of $900,000 in Accounts Receivable. On January 2, 2015, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $11,000. Extreme Fitness uses the direct write-off method a. What amount would the company report as its receivable accounts on December 31, 2014? s Receivable b. Prepare the journal entry to write off the accounts on January 2, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the write-off of certain customer accounts which are not collectible totaling $11,000 Note: Enter debits before credits. Date General Journal Debit Credit January 02 2015 Record entry Clear entry View general jourmal c-1. Assuming no other transactions occurred between December 31, 2014, and January 3, 2015, what amount would the company report as its receivable accounts on January 3, 2015? s Receivable c-2. Has Accounts Receivable changed from December 31, 2014? es No
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started