Question
Swifty Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2025.
Swifty Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2025. Amortized cost $52,200 Fair value 44,400 Expected credit loss 12,800 (a) Your Answer Correct Answer Your answer is correct. What is the amount of the credit loss that Swifty should report on this available-for-sale security at December 31, 2025? (Do not leave any answer field blank. Enter O for amounts.) (b) Amount of the credit loss eTextbook and Media Solution List of Accounts Your Answer Correct Answer (Used) 7800 Attempts: 3 of 3 used Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2025. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (c) Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts Your answer is correct. Debit 7,800 Credit 7,800 Assume that the fair value of the available-for-sale security is $57,400 at December 31, 2025, instead of $44,400. What is the amount of the credit loss that Swifty should report at December 31, 2025? (Do not leave any answer field blank. Enter O for amounts.) Amount of the credit loss (d) Your answer is incorrect. Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2025. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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