Accounting chapter 6 - Make the appropriate entry or...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
E6-25: Recognize Revenue The revenue should be recorded when company receive money before March 30. P6-58 Unifying Concepts: Aging of Accounts Receivable and Uncollectable Accounts: 1 \ given these data, make the necessary adjusting entry (or entries) for uncollectible accounts receivable on December 31, 2009, on Capital Edge’s book Losses from Uncollectible Accounts Age Balance Percentage Estimated to be uncollectible Amount Current 105600 0.5 528 1-30 days past due 31400 3 942 31-60 days past due 14200 4.5 639 61-90 days past due 3600 8 288 Over 90 days past due 900 10 90 Totals 155700 2487 Bad Debt Expense 1387 Allowance for Bad Debt 1387 To adjust the allowance account to the desired ending balance (2487 – 1100 =1387) 2 \ On February 14, 2010 Shannon Johnson, a customer , informed Capital Edge Company that she was going bankrupt and would not be able to pay her account of $89.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Make the appropriate entry or (entries) Allowance for Bad Debt 89 Account Receivable 89 To adjust the allowance account to the desired ending balance 3 \ On June 29, 2010, Shannon Johnson was able to pay the amount she owed in full. Make the appropriate entry or (entries): Account Receivable 89 Allowance for Bad Debt 89 To reinstate the balance previously written off. Cash 89 Account Receivable 89 Received payment in full of previously written off account 4 \ Assume that Allowance for Bad Debt at December 31, 2009, had a debit balance of 1,100, instead of a credit of balance of 1,100. Make the necessary adjusting journal entry that would be needed on December 31, 2009. Bad Debt Expense Allowance for Bad Debt 1100 To adjust the allowance account to the desired ending balance (...
View Full Document

This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

Page1 / 2

Accounting chapter 6 - Make the appropriate entry or...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online