If you are looking for the answer of where is entry for bad debts, you’ve got the right page. We have approximately 10 FAQ regarding where is entry for bad debts. Read it below.
Which type of adjusting entry applies to cash received for
Ask: Which type of adjusting entry applies to cash received for revenues party coveringthe current year for which financial statements are made, and the succeedingyear?a. Unearned revenueb. Deferred expensec. Depreciationd. Bad debts
Answer: The answer is letter A
Unearned revenue sometimes referred to as deferred revenue is money received by an individual or company for a service or product that has yet to be provided; accounts for money prepaid by a customer for goods or services that have not been delivered. It is recorded on a company’s balance sheet as a liability because it represents a debt owed to the customer.
Payment received before a good is sold or a service is provided. Unearned revenue is classified as a current liability on the balance sheet until it is recognized as earned during the accounting cycle.
Examples of unearned revenue:
- Rent payments received in advance
- Prepayment received for newspaper subscriptions
- Annual prepayment received for the use of software
- Prepaid insurance
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Which is an accurate method of determining the amount of
Ask: Which is an accurate method of determining the amount of the adjustment to bad debt expense?
A percentage of accounts receivable adjusted for the balance in the allowance.
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difference between bad debt and good debt?
Ask: difference between bad debt and good debt?
Good Dept is define as money owned for things that can help build weath or increase income over time such as students loans mortgages or a business loans
Bad Dept refers to things like credit card or other consumer Dept that do little to improve your financial outcome.
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Bad Debt Expense. a. increasing equity b. decreasing equity
Ask: Bad Debt Expense.
a. increasing equity
b. decreasing equity
The correct answer among the given listed choices is letter b. Under direct write-off method, Bad debt expense is a reduction of net income and will result in lower income reported in the owners’ equity. Under Allowance method, bad debts will be reported in a balance sheet that is a contra asset against receivable,therefore, Bad debt Expense has a decreasing effect on the owners’ equity account.
Bad Debt Expense
-this expense is recorded due to a receivable from a customer that possibly cannot be collected because of a certain cases such as:
- bad internal processes or changes in the ability of a customer to pay
- customer intentionally engaging in fraud
2 methods to record bad debt:
- Direct write-off method
-in case of reducing accounts receivable when there is a specific, recognizable bad debt, then debit the Bad Debt expense for the amount of the write off, and credit the accounts receivable asset account for the same amount.
- Allowance Method
– when charging an estimated amount of accounts receivable to bad debt expense in the same period in recording related revenue, debit the Bad Debt expense for the amount of the estimated write-off, and credit the Allowance for Doubtful Accounts contra account for the same amount.
The allowance method has the advantage of matching expected bad debts to revenues, even if you don’t know exactly which accounts receivable will not be collectible.
Which of the following methods of determining bad debt expense does not match expense and revenue? https://brainly.ph/question/2151158
For related topic about information on liabilities and shareholders’ equity https://brainly.ph/question/854284
What is an equity? https://brainly.ph/question/2444224
Which of the following methods of determining bad debt expense
Ask: Which of the following methods of determining bad debt expense does not match expense and revenue?
a. Charging bad debts with an amount derived from aging the accounts receivable under the allowance method
b. Charging bad debts with a percentage of accounts receivable under the allowance method
c. Charging bad debts with a percentage of sales under the allowance method
d. Charging bad debts as accounts are written off as uncollectible
a. Charging bed debts with an amount derived from aging the accounts recievable under the allowance method
Hello there! 🙂
D. Charging bad debts as accounts are written off as uncollectible
Charging bad debts with an amount derived from aging the accounts are NOT TRUE!
Charging bad debts with a percentage of accounts receivable are NOT TRUE!
Charging bad debts with percentage of sales under the allowance method are NOT TRUE!
Charging bad debts as accounts are written off as uncollectible are TRUE/CORRECT!
Hope this helps you!
Have a nice day! 🙂
is this a good or bad reason for getting into
Ask: is this a good or bad reason for getting into debt?
because I know I know
Is it a good or bad reason for getting in dept?
It is a bad reason because when you have dept you need to pay, and when you have no money you cant pay for the things you need, the food you eat, etc, so we need to not get in dept for some reason.
Which is not an accurate method of determining the amount
Ask: Which is not an accurate method of determining the amount of the adjustment to bad debt expense?
D. C h a r g i n g b a d d e b t s a s a c c o u n t s a r e w r i t t e n o f f a s u n c o l l e c t i b l e
When the direct write off method of recognizing bad debt
Ask: When the direct write off method of recognizing bad debt expense is used, the entry to write off a specific customer account would?
Decrease the accounts receivable balance and decrease net income
Acquisition cost of the asset less any accumulated depreciation on the asset
Benefits the company over several periods
out of current assets.out of current assets.
cr Accounts Receivable
less the balance in the Allowance for Doubtful Accounts account
Allowance for Doubtful Account
Income statement under other revenues
assets cost less than accumulated depreciatio
Hope it helps,
correct me if I’m wrong,
Which of the following would not be used as an
Ask: Which of the following would not be used as an adjusting entry?
a. Prepaid rent
b. Interest expense
d. Bad debt expense
Allowance for doubtful accounts
Answer is C……………..
Which type of adjusting entry decreases total assets?a. Depreciation expenseb.
Ask: Which type of adjusting entry decreases total assets?a. Depreciation expenseb. Bad debts expensec. Accrued expensed. Prepaid expense
Answer: The answer is letter B. Bad debts expense
Bad debts expense also known as uncollectible accounts or doubtful accounts expense is related to a company’s current asset accounts receivable. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed.
Bad debts are often first recorded on a company’s balance sheet. When a company thinks it’s unlikely to collect money owed, it will establish an “allowance for doubtful accounts” that will be used to offset, or reduce, the amount of debt reported as an asset on the company’s financial statements.
Examples: Debts with high or variable interest rates, especially when used for discretionary expenses or things that lose value. Sometimes, bad debts are just good debts gone awry. Credit card debt is an example of this.
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