On December 31, 2014, Extreme Fitness has adjusted balances of $840,000 in Accou

Question

On December 31, 2014, Extreme Fitness has adjusted balances of $840,000 in Accounts Receivable. On January 2, 2015, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $11,000. Extreme Fitness uses the direct write-off method. a. What amount would the company report as its receivable accounts on December 31, 2014? ounts Receivable b. Prepare the journal entry to write off the accounts on January 2, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the write-off of certain customer accounts which are not collectible totaling $11,000 Note: Enter debits before credits. Date General Journal Debit Credit January 02, 2015

Explanation / Answer

a) $840000 Accounts receivable should be reported on Dec 31, 2014 b) Journal entry Jan 2 Bad debt expense     $11000 Accounts receivable                  $11000 (to record the bad debt write off ) c-1) $829000 ($840000-$11000) Accounts receivable should be reported on Jan 3, 2015 c-2) Yes. The accounts receivable balance changed from $840000 to $829000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.