Question: Crunch, Inc. uses the direct write-off method regarding bad debts. Its customer, Leer Co. went out of business on September 15th owing Crunch, Inc. $1,213

Crunch, Inc. uses the direct write-off method regarding bad debts. Its customer, Leer Co. went out of business on September 15th owing Crunch, Inc. $1,213 that is not expected to be paid back. [25 Points] a. Record the write-off using the direct write-off method on Sept 15th. b. On October 22nd Crunch Inc receives a partial payment unexpectedly of $700 from Leer Co. Record the necessary entries c. Assume Crunch, Inc. uses the allowance method to write off bad debt. Record the journal entry to write of Leer's bad debt

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

XXIV. Referring to question #XXIV, assume the customer pays Two-Tall after the discount period. Record the receipt of payment by Two-Tall. XXV. Slice, Inc. uses the direct write-off method regarding...

Chapter 9 - Accounting for Receivables 8 Slice, Inc. uses the direct write-off method regarding bad debts. Its customer, IT, Inc. went out of business owing Slice, Inc. $988. a. Record the write-off...

- XXII. A piece of equipment costs $17,000 and thus far, accumulated depreciation is $7,000. After reconsideration, the salvage value is estimated to be $1,000 instead of $2,500 and the remaining...

Chpt 9 Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $17,190. The cost of the merchandise sold was $9,550. July 7. Received $5,500 from Dr. Sinclair Welby and wrote off the remainder...

d. AC in LC BRIEF EXERCISE 7.4 Mumford Corporation invested $30,000 in securities on 4 December. On 9 December, it sold some of these investments for $10,000, and on 18 December, it sold more of...

1. McGregor Co allows customers to pay with credit cards. The credit card company charges McGregor a 3% fee. When a customer uses a credit card to pay McGregor S200 for services provided, McGregor...

16 ACCOUNTING 1 QUESTIONS 30. The following information pertains to Ponce Company: Cash balance per bank statement $14,350 Cash balance per general ledger 15,080 Bank service charge 40 Deposits in...

quick questions 32. Under the allowance method of accounting for credit losses, the entry to write off a specific account: Select one: A. Is the same as the entry to write off a specific account...

1. McGregor Co allows customers to pay with credit cards. The credit card company charges McGregor a 3% fee. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor...

If managements goal is to maximize shareholder wealth, should it focus on the regular IRR or the MIRR? Explain your answer.

Levy Inc. manufactures tractors for agricultural usage. Levy purchases the engines needed for its tractors from two sources: Johnson Engines and Watson Company. The Johnson engine has a price of $...

2. Consider a sample with data values of 10, 20, 21, 17, 16, and 12. Compute the mean and median.

Occupational therapy and physical therapy can trace significant growth in their career fields to which of the following world events? World Wars I and II Modern Olympics College sporting events The...

What are the advantages and disadvantages of an MBO program?

Does giving praise really motivate employees, or do they view it as a means of getting them to do more work?

Some people say that reinforcement theory is a means of manipulating employees to do what the company wants them to do. Do you agree? Is the use of reinforcement theory ethical?