Ask Experts Questions for FREE Help !
Ask
    Superb1's Avatar
    Superb1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 24, 2010, 02:19 PM
    E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has accounts receivable
    E7-8 (Recording Bad Debts) At the end of 2007 Aramis Company has accounts receivable of $800,000 and
    an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable
    from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.

    Instructions

    (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable.
    (b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of
    the Ramirez receivable?
    (c) What is the net realizable value of Aramis Company’s accounts receivable after the write-off of
    the Ramirez receivable?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Feb 26, 2010, 12:42 AM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Allowance for Uncollectible Accounts / Provision for Bad debts [ 3 Answers ]

Which of the following methods for calculating the Allowance for Uncollectible Accounts merely requires a periodic update to the allowance account based on current period revenue? a) The receivable monitoring method b) The percentage of accounts receivable method c) The aging of accounts...

Cash Conversion Cycle. Calculate the accounts receivable period, accounts payable per [ 1 Answers ]

Cash Conversion Cycle. Calculate the accounts receivable period, accounts payable period, Inventory period, and cash conversion cycle for the following firm: Income statement data: Sales 5,000 Cost of goods sold 4,200 Balance sheet data: Beginning of Year ...

Doubtful debts: the ageing of accounts receivable method [ 4 Answers ]

Aussie World Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2006 reveal the following . Ignore GST. Credit sales (for year) $1070000 Credit sales returns and allowances (for year) =90000 accounts receivable (balance 30 June 2006) =323500 allowance for...

Bad debts expense accounts [ 1 Answers ]

If allowance for doubtful accounts has a credit balance of $2100 in the trial balance, how do I journalize the adjusting entry at December 31, assuming bad debts are expected to be 1% of net sales. Sales are $840,000. And 10% of accounts receivables? A/R is $110,000. Thanks

View more questions Search