Question
On Feb 4, 2018 Homer Company determined that I.M. Broke's $1,300 account receivable was uncollectible. On May 18, 2018, the $1,300 cash was unexpectedly received
On Feb 4, 2018 Homer Company determined that I.M. Broke's $1,300 account receivable was
uncollectible. On May 18, 2018, the $1,300 cash was unexpectedly received on account from I.M. Broke.
REQUIRED:
Give the general journal entries required to record the Feb 4 and May 18 transactions for Homer Company, assuming the direct method of accounting for bad debts is used.
Give the general journal entries required to record the Feb 4 and May 18 transactions for Homer Company, assuming the allowance method of accounting for bad debts is used.
Under the allowance method, if the cash realizable value of Homer Company's accounts receivable was $35,000 prior to the Feb 4 write-off entry, what is the cash realizable value of the accounts receivable after the Feb 4 write-off entry?
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Management Accounting
Authors: Donna K. Ulmer
7th Edition
0324234880, 978-0324234886
