Estimate Bad Debt Write-off and Net Accounts Receivable
Not what you're looking for?
At the end of 2008, Tindal Company has accounts receivable of $1,200,000 and an
allowance for doubtful accounts of $60,000. On February 28, 2009, Tindal Company
determined that the receivable from Fendi Company of $8,000 will not be collected,
and management authorized its write-off.
Prepare the journal entry for Tindal Company to write off the Fendi receivable.
DR CR
Bad debt expense 52,000
Allowance for doubtful accounts 52,000
What is the net realizable value of the Tindal Company's account receivable
before the write off the Fendi receivable?
Accounts receivable $1,200,000
Amount estimated to be uncollectable (60,000)
Net Realizable Value $1,140,000
What is the net realizable value of the Tindal Company's accounts receivable
after the write off of the Fendi receivable?
Accounts receivable $1,200,000
Amount estimated to be uncollectable
Net Realizable Value $-
Purchase this Solution
Solution Summary
Given a company using the allowance method of bad debts, this solution illustrates the journal entry to be recorded and the balance sheet presentation of a bad debt write-off.
Solution Preview
See attached file.
Under the allowance method, we debit the allowance account and credit the accounts receivable account to write off a ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.