Orn December 31, 2014, the Landon Corporation estimated that 3% of its credit sales of $215,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Orn December 31, 2014, the Landon Corporation estimated that 3% of its credit sales of $215,000 would be uncollectible. Landon used the allowance method of accounting for uncollectible accounts. On February 15, 2015, Landon wrote off the account of one of aas customers, in the amount of $2,500. On April 7, 2015, the customer paid the account in full. Which of the following answers correctly shows the effect of the December 31, 2014 adjusting entry for uncollectible accounts on the financial statements of the Landan Corporation? Equity NA Liab 6,450 (6,450) NA NA Rev. NA NA NA NA Cash Flow NA (6,450)OA 6,450 FA Exp NA Assets Net Inc. NA A) B) (6,450) 6,450 6,450 (6,450) +] %3D NA NA NA %3D C) D) 6,450 (6,450) (6,450) 6,450 6,450 (6,450) %3D %3D NA O A) Option A O B) Option B OC) Option C O D) Option D Save Question 20 (1 point) Which of the following answers correctly states the effect of Landon's write-off entry on February 15, 2015? Assets (2,500) NA NA 2,500 Linb NA NA 2,500 Equity (2,500) NA (2,500) 2,500 Expenies 2500 NA 2500 (2,500) Net Inc Cash (2.500) 2500OA NA NA 2500 OA Revenue A) NA B) C) D) NA NA NA NA (2,500) 2,500 %3D NA O A) Option A O B) Option B O C) Option C D) Option D Save Question 21 (1 point) Which of the following answers correctly states the effect of recording the collection of the reinstated receivable on April 7, 2015? Assets 2,500 NA G.500) NA Liabihties NA NA NA +Equity 2,500 NA Expensor NA NA -Net Inc 2,500 Cah 2,500 A 2.500 OA (2.500 OA NA Reverue 2,500 A) NA G500) 2,500 NA C.500) 2,500 2.500) 2.500 NA D) (2,500) NA O A) Option A O B) Option B O C) Option C O D) Option D Orn December 31, 2014, the Landon Corporation estimated that 3% of its credit sales of $215,000 would be uncollectible. Landon used the allowance method of accounting for uncollectible accounts. On February 15, 2015, Landon wrote off the account of one of aas customers, in the amount of $2,500. On April 7, 2015, the customer paid the account in full. Which of the following answers correctly shows the effect of the December 31, 2014 adjusting entry for uncollectible accounts on the financial statements of the Landan Corporation? Equity NA Liab 6,450 (6,450) NA NA Rev. NA NA NA NA Cash Flow NA (6,450)OA 6,450 FA Exp NA Assets Net Inc. NA A) B) (6,450) 6,450 6,450 (6,450) +] %3D NA NA NA %3D C) D) 6,450 (6,450) (6,450) 6,450 6,450 (6,450) %3D %3D NA O A) Option A O B) Option B OC) Option C O D) Option D Save Question 20 (1 point) Which of the following answers correctly states the effect of Landon's write-off entry on February 15, 2015? Assets (2,500) NA NA 2,500 Linb NA NA 2,500 Equity (2,500) NA (2,500) 2,500 Expenies 2500 NA 2500 (2,500) Net Inc Cash (2.500) 2500OA NA NA 2500 OA Revenue A) NA B) C) D) NA NA NA NA (2,500) 2,500 %3D NA O A) Option A O B) Option B O C) Option C D) Option D Save Question 21 (1 point) Which of the following answers correctly states the effect of recording the collection of the reinstated receivable on April 7, 2015? Assets 2,500 NA G.500) NA Liabihties NA NA NA +Equity 2,500 NA Expensor NA NA -Net Inc 2,500 Cah 2,500 A 2.500 OA (2.500 OA NA Reverue 2,500 A) NA G500) 2,500 NA C.500) 2,500 2.500) 2.500 NA D) (2,500) NA O A) Option A O B) Option B O C) Option C O D) Option D
Expert Answer:
Answer rating: 100% (QA)
Estimated Baddebts 215000 x 3 6450 1 Recognition Entry December 31 2014 6450 Bad Debts Expens... View the full answer
Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012: April May June Credit sales $312,000 $291,200 $350,400 Credit purchases 118,240 141,040...
-
The allowance method of accounting for uncollectible accounts receivable involves the creation of contra account that shows the estimated amount of uncollectible receivables. Why would financial...
-
On December 31, 2014 Felt Company's inventory burned. Sales and purchases for the year had been $1,500,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2014) was $170,000; in the past...
-
Why would you use a prospective overhead rate to accumulate the overhead costs of a job?
-
Prove that for every two events A and B, the probability that exactly one of the two events will occur is given by the expression Pr(A) + Pr(B) 2 Pr(A B).
-
Write a short cover memo using standard memo format and address your proposal to your teacher. Summarize the key issues that you plan on researching for your final CMNS 1140 report and ask for...
-
Analyze the distribution of power in band societies and explain how conflict is resolved in them.
-
Rottino Company purchased a new machine on October 1, 2014, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for...
-
Students are asked to assume that during an advanced degree program, they thoroughly studied and reviewed the most popular personality tests used by companies as selection techniques. Students are...
-
Greyon Inc. operates an active business. Financial statements for the year ended December 31, 2021 report a net income before taxes of $300,000. The following additional information is provided: 1....
-
Use the identities m k= [m(m + 1)], to evaluate the sum m [m(m + 1) (2m +1)], 100 ((k+101)-3k-305). k-100 M 4 = 1 [m (m + 1)]
-
First, find a current Canadian article (within 3 months ) that discusses some aspect of the impact of inflation on the economy and on our lives. You need to provide a short summary (at least three...
-
You own 100 shares of stock. It will pay (per share) $10 dividend in year 1, $25 dividend in years 2-9, and $175 liquidating dividend in year 10. The required return on the stock is 10%. a) What is...
-
Suppose that, under the terms of a swap, a swap dealer has agreed to pay 6-month LIBOR and receive 6% per year (with semiannual compounding) on a notional principal of $20 million. The swap has a...
-
Phillips Curve: = E 0.5(u 6) Expected inflation: E = 0.71 + 0.32 Okun's Law: (Y Y1)/Y1 = 3.0 2.0(ut ut1) Economy begins at natural rate of unemployment with inflation stable at 5%. What is...
-
In addition to the currencies, British Pound, Canadian Dollar, Chinese Renminbi, European Euro, Japanese Yen, and Mexican Peso, what other currencies, if any, and their exchange rates to the US...
-
Use the following cash flow data for Rocket Transport to find Rocket's: a. Net cash provided by or used in investing activities b. Net cash provided by or used in financing activities. c. Net...
-
(a) Water flows through the nozzle of a garden hose. Find an expression for m in terms of line pressure P 1 , ambient pressure P 2 , inside hose diameter D 1 , and nozzle outlet diameter D 2 . Assume...
-
On December 31, 2014, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at...
-
Broussard Company reported net income of $3.5 million in 2014. Depreciation for the year was $520,000; accounts receivable increased $500,000; and accounts payable increased $300,000. Compute net...
-
C. Reither Co. reports the following information for 2014: sales revenue $700,000; cost of goods sold $500,000; operating expenses $80,000; and an unrealized holding loss on available-for-sale...
-
Distinguish between P-time and M-time.
-
During the year to 31 March 2024, a company which qualifies as medium-sized spends 180,000 on research and development. This is qualifying expenditure under the R&D tax relief scheme. Explain the...
-
A company's accounts for the 17 months to 30 June 2023 include: The debentures were acquired (not for trade purposes) on 1 May 2022. Interest is payable half-yearly on 30 April and 31 October. Show...
Study smarter with the SolutionInn App