INTERMEDIATE ACCOUNTING VOLUME 2
7TH EDITION BEECHY ACTUAL SCRIPT
WITH 100 PERCENT CORRECT ANSWERS
◉ Gross:
Debit cash 3920
Debit Sales discounts 80 (4,000*.02)
Credit AR 4,000
Net:
Debit Cash 3,920
Credit AR 3,920
Answer: What is the Gross method and the Net method of
Payment on 4,000 of sales received within the discount period
2/10 n/30
◉ Gross
Debit Cash 6,000
Credit AR 6,000
Net
Debit Cash 6,000
Credit AR 5,880
Credit Sales discounts failed 120
,Answer: What is the Gross method and the Net method of
6,000 of sales received after the discount period
2/10, n/30
◉ Debit Allowance for Doubtful Account
Credit AR
Answer: A business realizes that collection from a customer will
be impossible. The accountant needs to off the un collectible
account using the allowance method
What is the journal entry
◉ Debit AR 4,000
Credit AfDA 4,000
Receives payment
Debit Cash 4,000
Credit AR 4,000
Answer: A company uses the allowance method for uncollectible
accounts. On November 10, 2020, the company wrote off a
customer's $4,000 account receivable. The company received
payment in full from the customer on December 1, 2020.
What entry or entries does the company record on December 1st?
◉ debit bad debt expense, credit allowance for doubtful accounts
Answer: What is the journal entry for recording bad debt expense
under the allowance method?
, ◉ Debit AR
Credit AfDA
Answer: What is included in the journal entry to record the
collection of accounts receivable previously written off when
using the allowance method?
◉ Debit bad debt expense; credit accounts receivable.
Answer: As of December 31, a company has an uncollectible
account of $10,000. The accountant uses the direct write-off
method to account for bad debts.
What is the journal entry for the write off of the account?
◉ Debit Allowance for doubtful accounts; credit A/R
Answer: As of December 31, a company has an uncollectible
account of $10,000. The accountant uses the allowance method to
account for bad debts.
What is the journal entry for the write off of the account?
◉ The obligation of the seller of the receivables to pay the
purchaser in case the debtor fails to pay.
Answer: What is "recourse" as it relates to selling receivables?
◉ The factor assumes the collection risk and absorbs any credit
losses in collecting the receivables.
7TH EDITION BEECHY ACTUAL SCRIPT
WITH 100 PERCENT CORRECT ANSWERS
◉ Gross:
Debit cash 3920
Debit Sales discounts 80 (4,000*.02)
Credit AR 4,000
Net:
Debit Cash 3,920
Credit AR 3,920
Answer: What is the Gross method and the Net method of
Payment on 4,000 of sales received within the discount period
2/10 n/30
◉ Gross
Debit Cash 6,000
Credit AR 6,000
Net
Debit Cash 6,000
Credit AR 5,880
Credit Sales discounts failed 120
,Answer: What is the Gross method and the Net method of
6,000 of sales received after the discount period
2/10, n/30
◉ Debit Allowance for Doubtful Account
Credit AR
Answer: A business realizes that collection from a customer will
be impossible. The accountant needs to off the un collectible
account using the allowance method
What is the journal entry
◉ Debit AR 4,000
Credit AfDA 4,000
Receives payment
Debit Cash 4,000
Credit AR 4,000
Answer: A company uses the allowance method for uncollectible
accounts. On November 10, 2020, the company wrote off a
customer's $4,000 account receivable. The company received
payment in full from the customer on December 1, 2020.
What entry or entries does the company record on December 1st?
◉ debit bad debt expense, credit allowance for doubtful accounts
Answer: What is the journal entry for recording bad debt expense
under the allowance method?
, ◉ Debit AR
Credit AfDA
Answer: What is included in the journal entry to record the
collection of accounts receivable previously written off when
using the allowance method?
◉ Debit bad debt expense; credit accounts receivable.
Answer: As of December 31, a company has an uncollectible
account of $10,000. The accountant uses the direct write-off
method to account for bad debts.
What is the journal entry for the write off of the account?
◉ Debit Allowance for doubtful accounts; credit A/R
Answer: As of December 31, a company has an uncollectible
account of $10,000. The accountant uses the allowance method to
account for bad debts.
What is the journal entry for the write off of the account?
◉ The obligation of the seller of the receivables to pay the
purchaser in case the debtor fails to pay.
Answer: What is "recourse" as it relates to selling receivables?
◉ The factor assumes the collection risk and absorbs any credit
losses in collecting the receivables.
