Question 1

Larsen Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $45,700 and $1,280,respectively.The company reported credit sales of $475,250 during the year,collected $480,200,and wrote off $800 of uncollectible accounts.Larsen Company estimates that 12% of its accounts receivable balance will be uncollectible.
Required:
a)Calculate Larsen Company's uncollectible accounts expense for 2016.
b)What will Larsen report as its allowance for doubtful accounts on December 31,2016?
c)Calculate Larsen's net realizable value of accounts receivable on December 31,2016.

Accepted Answer

a)$45,700 + $475,250 - $480,000 - $800 =...

Question 2

What are some of the costs a business incurs in making credit sales to customers? What are some of the benefits of making credit sales?

Accepted Answer

Costs include the cost of handling the a...

Question 3

With the direct write-off method,writing off an account receivable is an asset use transaction.

Accepted Answer

A) True 
 B)False

Question 4

Elliston Company accepted credit card payments for $10,000 of services provided to customers.The credit card company charges a 3% service charge.This transaction would

Accepted Answer

A)  increase revenue by $9,700.
B)  increase assets by $10,000.
C)  increase Retained Earnings by $9,700.
D)  increase net income by $10,000.E) B) and C)
F) A) and B)

Exam 7: Accounting for Receivables

With the direct write-off method,writing off an account receivable is an asset use transaction.

Correct Answer
verified

Correct Answer
verified
a)$45,700 + $475,250 - $480,000 - $800 =...
View Answer

What are some of the costs a business incurs in making credit sales to customers? What are some of the benefits of making credit sales?

Correct Answer
verified
Costs include the cost of handling the a...
View Answer

Elliston Company accepted credit card payments for $10,000 of services provided to customers.The credit card company charges a 3% service charge.This transaction would

Correct Answer
verified

Exam 7: Accounting for Receivables

With the direct write-off method,writing off an account receivable is an asset use transaction.

Correct AnswerverifiedShow Answer

Correct Answerverifieda)$45,700 + $475,250 - $480,000 - $800 =...View AnswerShow Answer

What are some of the costs a business incurs in making credit sales to customers? What are some of the benefits of making credit sales?

Correct AnswerverifiedCosts include the cost of handling the a...View AnswerShow Answer

Elliston Company accepted credit card payments for $10,000 of services provided to customers.The credit card company charges a 3% service charge.This transaction would

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a)$45,700 + $475,250 - $480,000 - $800 =...
View Answer

Correct Answer
verified
Costs include the cost of handling the a...
View Answer

Correct Answer
verified