Benxa company was found to have difficulty payıng debts or so-called (to fail/failite),and unsecured invoices would be paid $50 for every $2,000. Brown Company has notesreceivable from Benxa company of $50,000. Benxa Company's notes payable to Browncompany are secured by inventories estimated at $18,000 How much is BrownCompany's realızable receivables?

Solution : Given Benxa company was found to have difficulty paying debts Payment to unsecured…

Answered: Benxa company was found to have…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

On December 31 of the current year, the following accounts were discovered in the BT21 Company's ledger: Dr. Accounts Receivable is at P356,800; Cr. Bad Debt Allowance is for P8,760; Cr. Cash Sales is worth P913,800; and Cr. Credit Sales is worth P1,851,000. Five percent of the outstanding accounts receivable, according to analysis, won't be recovered. What amount of the allowance for bad debts will need to be adjusted on December 31?
Amazon company has accounts receivable totaling $850,000 and an Allowance for doubtful Accounts balance of $60,000. The company will have to write off an uncollectable receivable in the amount of $5,000. Required: What will be the effect on bad debt expense of writing off this accounts receivable? Explain.
During fiscal year 2012, Byrd Inc. wrote-off $8,000 of customer accounts as uncollectible. Which of the following items would be decreased by these write-offs? (check all that apply) Accounts Receivable Allowance for Doubtful Accounts Net Income Bad Debt Expense Cash flow from Operations Adjust Draw
Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a debit balance of $500,000 in the Accounts Receivable account with Credit Sales of $1,500,000 for the year. Management estimates 1.5% of credit sales will become uncollectible. What is the amount of estimated bad debts expense?
At December 31, 2024, Bacardi Company had $500,000 in Accounts Receivable and$20,000 in the Allowance for Doubtful Accounts. All sales made by Bacardi are onaccount. During 2025, Bacardi recorded the following transactions: $2,000,000 insales; $2,100,000 collected from customers; $27,000 in accounts were written off asuncollectible; and bad debt expense for the year ended December 31, 2025 was$31,000. When preparing their December 31, 2025 balance sheet, the amountBacardi Company would report as net accounts receivable is: $373,000 $400,000 $349,000 $369,000
Tanning Company analyzes its receivables to estimate bad debt expenses. The accounts receivable balance is $350,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 10% of the outstanding receiveables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment?
California Cannery began in 2008 with a debit balance in Accounts Receivable $150,000 and a credit balance in Allowance for Doubtful Accounts for 7,500 for the year. During the year California Cannery sold 1,300,000 of product and collected 1,350,000 from customers. In addition, $4,000 of Accounts Receivable balance was written off as uncollectable during the year. Management uses the allowance method to account for bad debts and believes that ultimately 5% of the year-end balance in Accounts Receivable will not be collected. How much bad debt expenses will be recorded in 2008?
Wanda Company sold accounts receivable without recourse for P8,200,000. The company received P8,000,000 cash immediately from the factor. The remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts. What amount of loss on factoring should be recognized?
Stello Co. uses the percentage of credit sales method to determine its bad debt expense. All sales are made on credit. At the end of the current year, the company's net credit sales were $900,000, the balance in Accounts Receivable was $655,000, and the debit balance in Allowance for Doubtful Accounts was $800. Based on past experience, the company estimates 0.6% of net credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? a.$5,400 b.$1,775 c.$4,800 d.$1,275
Bourne Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $ 600,000 and customers' accounts collected were $590, 000. Also, $4,000 in worthless accounts were written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts? Select one: A. $120,000 B. $130, 000 C. $126,000 D. $154,000
The following transactions occurred for Salamon Co. in 2021. The beginning balance of Accounts Receivable is $200,000 and Allowance for Doubtful Accounts (ADA) has a credit balance of $10,000. Salamon recorded sales on account of $750,000. Salamon recorded cash sales of $270,000. Salamon Co. wrote off $8,000 of accounts receivable from Haar Co. that became uncollectible. Salamon Co. uses the allowance method. Salamon collected $625,000 of accounts receivable due. Salamon wrote off $2,500 of receivables from Starr that became uncollectible. Haar repaid Salamon half the amount that had been written off. (2 entries required) a. Prepare journal entries for all the above transactions b. Post the above entries to the T accounts for A/R and ADA and calculate the ending balance of each account. c. Based on the above transactions, if Salamon wants an adjusted ending balance in ADA of $14,000, prepare the necessary year end adjustment.
Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $286,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? Select the correct answer. Bad Debt Expense$8,940 Accounts Receivable$8,940 Bad Debt Expense$10,440 Allowance for Doubtful Accounts$10,440 Bad Debt Expense$9,440 Allowance for Doubtful Accounts$9,440 Bad Debt Expense$8,440 Accounts Receivable$8,440

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