Magnetics International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2012:
Question:
Magnetics International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2012:
Customer Amount
Trey Betts .... $15,500
Cheryl Carson .... 9,000
Irene Harris .... 29,700
Renee Putman .... 3,100
Total ...... $57,300
The company prepared the following aging schedule for its accounts receivable on December 31, 2012:
.png)
a. Journalize the write-offs for 2012 under the direct write-off method.
b. Journalize the write-offs and the year-end adjusting entry for 2012 under the allowance method, assuming that the allowance account had a beginning balance of $55,000 on January 1, 2012, and the company uses the analysis of receivables method.
c. How much higher (lower) would Magnetics International's 2012 net income have been under the allowance method than under the direct write-offmethod?
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
a Bad Debt Expense 57300 Accounts Receivable x Trey Betts 15500 Accounts Receivable x Cheryl Carson ...View the full answer
