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Tiger Co. uses the direct write-off method to account for uncollectible accounts. Journalize the adjusting entry assuming Tiger Co. determines that Lion Co's $700 on balance is uncollectible.
- Bad Debt Expense 700
- A/R 700
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Tiger Co's allowance for doubtful accounts has a credit balance of $4,000. Journalize the adjusting entry assuming bad debt are expected to be 10% of the $60,000 of receivables.
- Bad Debt Expense 2,000
- Allowance for doubtful accounts 2,000
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Tiger Co's allowance for doubtful accounts has a debit balance of $4,500. Journalize the adjusting entry assuming bad debt are expected to be 10% of the $80,000 of receivables.
- 80,000 x 0.10 = 8,000
- Allowance for Doubtful Accounts
- Bad Debt Expense 12,500
- Allow. for Doubtful Accounts 12,500
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What is the maturity date for a 60-day note dated July 7th?
July (31 days): 31-7= 24 days left in July
60-24(July)= 36-31(August)= 5
= September 5th
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Tiger Co. lends Lion Co. $25,000 on August 1st, accepting a 3-month 5% interest note. Tiger collects the note & interest on Nov. 1st. What is the journal entry for Nov. 1st?
25,000 x 0.05 x (3/12)= 312.5
- Cash 25,312.50
- Notes Receivable 25,000
- Interest Revenue 312.50
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Tiger Co. lends Lion Co. $25,000 on August 1st, accepting a 3-month 5% interest note. Assume Lion Co. can't pay at this time. What is the JE for Nov. 1st?
25,000 x 0.05 x (3/12)= 312.5
- A/R 25,312.50
- Notes Receivable 25,000
- Interest Revenue 312.50
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