A business issued a 90-day, 9% note for $25,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of thenote and (b) the payment of the note at maturity, including interest.If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflowsas negative amounts.a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note.Statement of CashFlowsNo effectStatement of Cash FlowsStatement of CashAssetsNo effectFlowsAssetsCash= Accounts payable✓Balance SheetLiabilitiesLiabilitiesBalance SheetNotes payable✓ +Notes payableb. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required,round interest expense to the nearest whole number.+Stockholders' Equity✓Retained earnings++Stockholders' EquityNo effectNo effectIncomeStatementIncome StatementIncomeStatement

Lets understand the basics.Notes payable gets issued generally to obtain finance from outside or to…

count or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and tive amounts. trate the effects on the accounts and financial statements of recording the issuance of the note. ement of Cash Flows Assets ffect No effect Statement of Cash Flows Accounts payable Balance Sheet Liabilities Notes payable ✓ + + Stockholders' Equity No effect Income Statement Income Statement No effect

count or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and tive amounts. trate the effects on the accounts and financial statements of recording the issuance of the note. ement of Cash Flows Assets ffect No effect Statement of Cash Flows Accounts payable Balance Sheet Liabilities Notes payable ✓ + + Stockholders' Equity No effect Income Statement Income Statement No effect

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

See similar textbooks

Similar questions

1. Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected T ac- counts and determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31. bacing the provision for uncollectible accountsS on an
A business issued a 60-day, 7% note for $43,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Tlustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Statement of Cash Income Assets Liabilities Stockholders' Equity Flows Statement Statement of Cash Flows Income Statement b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Income Statement of Cash Assets Liabilities Stockholders' Equity Statement…
A business issued a 90-day, 8% note for $34,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number.
4. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense 5. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to - record the collection of the note should include a a. credit to Notes Receivable for $20,300 b. debit to Interest Receivable for $300 c. credit to Interest Revenue for $300 d. debit to Notes Receivable for $20,000 6. The receivable that is usually evidenced by a formal, written instrument of credit is a(n) a. trade receivable b. note receivable c. accounts receivable d. income tax receivable
A company uses the allowance method to account for uncollectible accounts. During the year, the company has actual bad debts of $27,000. Record the write-off of the uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the write-off of the uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 1 4). F12 F7 Fo F3 # 2$ 5 6 7 8 9 { E R Y F G H. K S < M C V alt command option command + lI .. .-
Notes Payable A business issued a 90-day, 9% note for $52,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Statement of Stockholders' Income Assets Liabilities + %3D Cash Flows Equity Statement No effect Accounts payable v + Notes payable v + No effect v 52,000 Statement of Cash Flows Income Statement No effect v No effect v b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the…
View Policies Current Attempt in Progress Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off (a) Account Titles and Explanation Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. (To record sales on account) (To record collection of accounts receivable) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) eTextbook and Media $143.000 List of Accounts 11,340 Save for Later Using multiple attempts will impact your score. 10% scare reduction after attempt 5 930,000 912.000 6,400 2,200…
A $14,400, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is the one listed below. Select the correct answer. a-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,544 b-debit Cash, $14,544; credit Notes Receivable, $14,544 c-debit Accounts Receivable, $14,544; credit Notes Receivable, $14,400; Credit Interest Revenue, $144 d-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,400; Credit Interest Receivable, $144
During its first year of operations, Crane Company had credit sales of $3,064,300; $655,000 remained uncollected at year-end. The credit manager estimates that $36,900 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Crane Company. Assume that in addition to the receivables it has cash of $94,400, inventory of $135,200, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet (Partial) 24 %24 %24
Sheridan Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $150,000 50,660 Cr. $2,650 821,100
3. On July 19, 2022, a customer's account balance of $6,700 is written off as uncollectible. Record the write-off. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record write off of actual bad debts. Note: Enter debits before credits. Date General Journal Debit Credit July 19, 2022
Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Accounts should be $19,950. The account had an unadjusted credit balance of $11,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select in the first account field.) a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,100 was determined to be uncollectible and was written off. View transaction list Journal entry worksheet 1 2 Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry