B-07.03 Problem

B-07.03 Problem - B-07.03 Flowers and Fluff frequently...

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B-07.03 Flowers and Fluff frequently receives rush orders for floral deliveries. Some of these orders are on account. Occasionally, customers do not pay for their orders. Flowers and Fluff is a small business and is not too concerned about exactly following generally accepted accounting principles. Review the two following "open" accounts and determine which should be written off. Flowers and Fluff prefers to use the direct write-off method and routinely reviews all accounts that are more than 90 days past due. (1) Vince Colioni ordered flowers to be delivered to his girlfriend. Unfortunately, a bee was delivered along with the flowers, and Vince and his girlfriend spent the evening at the emergency room nursing a bad sting. Vince had planned to propose marriage that evening. Vince owes $125 for the flowers. The account is six months past due, and under the circumstances, the owners of Flowers and Fluff have no plans to press Vince for payment. (2)
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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