This concept is applied by the recording of losses from uncollectible accounts in the same fiscal year as the related sales.
What is Matching Expenses with Revenue
100
What is the normal balance of the account Uncollectible Accounts Expense?
Debit
100
What happens to a customer account when a written off account is paid?
The account must be reopened with a debit and then the payment is shown with a credit
100
A loss from an uncollectible account is considered .....
a regular expense of doing business
200
Accounts Receivable that cannot be collected
What is uncollectible accounts
200
What 3 accounts are affected in the journal entry to write off an uncollectible account?
Accounts Receivable and Allowance for Uncollectible Accounts and the Customer Account whose balance cannot be collected
200
Is Accounts Receivable debited or credited to write off a customer account?
Credited
200
After entries are made to reopen a customer account and record collection of the account, what is the balance of the account?
zero
300
Assumes that that a portion of every sale on account dollar will become uncollectible.
What is The percentage of total sales on account methode of estimating uncollectible accounts expense
300
What accounts are debited in to reopen an account?
Accounts Receivable and the Customer Account
300
What happens to the book value of Accounts Receivable after writing off an uncollectible account?
It stays the same
400
Accounts Receivable minus Balance of Allowance for Uncollectible Accounts
Book Value of Accounts Receivable
400
When the percentage of total sales on account method is used, the estimated uncollectible accounts expense is calculated by ...
Multiplying total sales on account by the percentage they have found in the past on uncollectible accounts
400
An estimate of the amount of accounts receivable the business expects to collect during the next fiscal year
What is book value of accounts receivable?
400
Explain the entries to record cash received for an account previously written off
Cash Receipts Journal
1. Debit Cash
2. Credit Accounts Receivable/Customer Account
(the cash amount and the Accounts Rec amount will be posted to the ledgers at the end of the month in the totals)
500
Cancelling the balance of a customer account because the customer does not pay
Writing Off an account
500
Explain Matching Expense with Revenue concept and how it is applied when recording losses from uncollectible accounts
It is an attempt to record the expense incurred from the sales on account by estimating the amount of that will be uncollectible in a contra account in the same fiscal period as the revenue was earned.
500
Explain the entries for Writing off ann account
1.Debit Allowance for Uncollectible Accounts
2.Credit Accounts Receivable/Customer Account
3.Write the Words "Written Off" in the Customer Ledger Account
500
Explain the entries for Reopening an account previously written off