A customer of Exquisite Flooring recently filed for bankruptcy protection two months ago, leading the credit manager of Exquisite Flooring to conclude that the company would never collect the balance of $2,800 owed by the customer to our company.
21.
Required information
Use the information above to answer the following question. Which of the following journal entries would be made by Exquisite Flooring to record the write-off of the customer's Accounts Receivable balance?
Debit Bad Debt Expense and credit Accounts Receivable for $2,800
Debit Sales and credit Accounts Receivable for $2,800
Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $2,800
Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $2,800
22.
Required information
Use the information above to answer the following question. Suppose that three months after filing bankruptcy, Exquisite Flooring's customer paid its outstanding account balance. Which of the following journal entries would be made to record this transaction?
Debit Cash and credit Sales for $2,800
Debit Cash and credit Allowance for Doubtful Accounts for $2,800
Debit Cash and credit Accounts Receivable for $2,800
Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $2,800; debit Cash and credit Accounts Receivable for $2,800
A customer of Exquisite Flooring recently filed for bankruptcy protection two months ago, leading the credit manager of Exquisite Flooring to conclude that the company would never collect the balance of $2,800 owed by the customer to our company.
21.
Required information
Use the information above to answer the following question. Which of the following journal entries would be made by Exquisite Flooring to record the write-off of the customer's Accounts Receivable balance?
Debit Bad Debt Expense and credit Accounts Receivable for $2,800
Debit Sales and credit Accounts Receivable for $2,800
Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $2,800
Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $2,800
22.
Required information
Use the information above to answer the following question. Suppose that three months after filing bankruptcy, Exquisite Flooring's customer paid its outstanding account balance. Which of the following journal entries would be made to record this transaction?
Debit Cash and credit Sales for $2,800
Debit Cash and credit Allowance for Doubtful Accounts for $2,800
Debit Cash and credit Accounts Receivable for $2,800
Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $2,800; debit Cash and credit Accounts Receivable for $2,800
