Solution-Journalize the write offs and the year end

Journalize the write offs and the year end adjusting entry

Assignment Help Accounting Basics

Reference no: EM131125515

OK International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2010:

Customer Amount
Eva Fry $ 6,500
Lance Landau 11,200
Marcie Moffet 3,800
Jose Reis 3,500
Total $25,000

The company prepared the following aging schedule for its accounts receivable on December 31, 2010:

a. Journalize the write-offs for 2010 under the direct write-off method.

b. Journalize the write-offs and the year-end adjusting entry for 2010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500 on January 1, 2010, and the company uses the analysis of receivablesmethod.

Reference no: EM131125515

Questions Cloud

Deposits the money into his personal checking account : Joe loves explosives and begins his own demolition company, “Joe the Destroyer.” He doesn’t file any paperwork to begin his company because his friend told him that he didn’t need to file anything to start a sole proprietorship. Joe gets his first jo..

Determine the due date and the amount of interest : Determine the due date and the amount of interest due at maturity on the following notes:

Describe the absolute priority rule : Describe the absolute priority rule.

History of sales and profit margins : Steve has gathered information on the Web about Amazon’s (AMZN) history of sales and profit margins. Based on this information, he believes that Amazon will have sales of $45 billion next year, with a profit margin of 3.0%. Given this EPS estimate an..

Journalize the write offs and the year end adjusting entry : The company prepared the following aging schedule for its accounts receivable on December 31, 2010:

Define cram down procedure debtor in possession financing : Briefly define the following terms: cram-down procedure, debtor-in-possession financing, and prepackaged bankruptcy.

Isner company wrote off the following accounts receivable : How much higher (lower) would Isner Company's 2010 net income have been under the direct write-off method than under the allowance method?

Flexible benefits programs are employer inducements : Flexible benefits programs are employer inducements to reduce benefits costs. The average employee has neither the ability nor information to make such important choices. Employees should suspect such programs.” Do you agree or disagree? Explain your..

Describe the common pool and holdout problems : Briefly describe the common pool and holdout problems that often make it necessary for a venture to enter into a court-supervised reorganization.

User Account

All Pages

Journalize the write offs and the year end adjusting entry

Reference no: EM131125515

Reference no: EM131125515

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT