On December 1, Anson’s Drug Store concluded that a customer’s $325 account receivable was uncollected and that the account should be written off. What effect will this write-off have on the company’s net income and balance sheet totals assuming the direct write-off method is used to account for bad debts?

On October 1, ABC Company accepted a $50,000, 6%, six month note from a customer in lieu of an existing account. The journal entry necessary by ABC on October 1 would include:

The  journal entry necessary to update the Cash account after a bank reconciliation for interest earned would include:

AT&U CompanyData for the year ended December 31 are presented below: Sales (credit) $2,500,000 Accounts Receivable (December 31) 640,000 Allowance for Doubtful Accounts (before adjustment December 31) – credit balance 20,000  Estimated amount of uncollected accounts based on aging analysis 45,000   Refer to AT&U Company. If the company estimates its bad debts at 1% of credit sales, what amount will be reported as bad debt expense?

A2Z EventsThe following data are from the company’s records for the year ended December 31: Credit sales during the year $2,400,000 Accounts Receivable–December 31 410,000 Allowance for Doubtful Accounts–December 31 55,000 Bad debt expense for the year 70,000   Refer to A2Z Events. What are the effects on the accounting equation when the company writes off a bad debt under the allowance method?

Which of the following statements is true about the Allowance for Doubtful Accounts?

Ace Computing Company On January 1, the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $40,000 and $1,500 respectively. During the year, the company reported $80,000 of credit sales. There were $500 of receivables written off as uncollected during the year. Cash collections of receivables amounted to $78,200. Refer to the Ace Computing Company. What effect will the write-off have on the accounting equation using the allowance method?

Dance Town AcademyThe items listed below were identified while preparing a bank reconciliation for the company’s checking account as of March 31. Cash balance according to the general ledger ? Bank statement balance $18,500 Outstanding checks 2,700 Customer’s NSF check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60   Refer to Dance Town Academy. How will the outstanding checks be handled on a bank reconciliation?

Which of the following is an element of internal control?

Which of the following items would be subtracted from the balance per the company on a bank reconciliation?