List Of Accounts Exercise 7-8 Accounts Payable Accounts Receivable Advertising E

Question

List Of Accounts Exercise 7-8 Accounts Payable Accounts Receivable Advertising Expense Allo Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Sale of Receivables Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue wance for Doubtful Accounts

Explanation / Answer

a) Date Particular Debit Credit 16-Jan Allownace for Doubtful accounts 6770                       Accounts Receivables 6770 Aamount written off is deducted from allowance for doubtful accounts Since each year bad debt expense is accumulated to allowance account, now allowance account will be used to write off amount not received b) Net Realisable value of accounts receivables Before Write off = Accounts Receivables - Allowance for doubtful accounts = 937020 - 48800 888220 c) Now Adjusted Accounts Receivables = Accounts receivables - amount written off = 937020-6770 930250 Adjusted allowance for doubtful accounts = Allowance for doubtful accounts - written off = 48800-6770 42030 Net Realisable value of accounts receivables After Write off = Adjusted Accounts Receivables - Adjusted allowance for doubtful accounts = 930250 - 42030 888220

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