Accounting Chapter 9 - Homework Problems and Solutions

School: Indiana Institute of Technology - Course: ACC 1010 - Subject: Accounting

Chapter 9 Homework Problem E9-16 20 Points Total Overall 4 Points - This Tab Name:Shonda Jackson E9-16 Requirement 1 DateAccounts and ExplanationDebitCredit Jun-23Accounts Receivable- Andrew Trucking Co19,000 Sales Revenue19,000 Sold goods on account Jul-23Cash7,000 Accounts Receivable- Andrew Trucking Co7,000 Collected cash on account. 5-SepBad debts Expense12000 Accounts Receivable- Andrew Trucking Co12,000 Wrote off an uncollected account 5-MarAccounts Recievable- Andrew Trucking Co 12000 Bad bebts Expense12,000 Reinstated previously written off account 5-MarCash12000 Accounts Receviable- Andrew Trucking Co12,000

Collected cash on account DateAccounts and ExplanationDebitCredit Requirement 2 The direct write off method doesn't comply with the principle. The $12000 payment received on March 5th belonged in a different accounting period rather than the revenue that was originally recorded. This made the company's revenue overstated in their first yearand understated the revenue the next year.

Chapter 9 Homework Problem E9-17 4 Points Name:Shonda Jackson E9-17 Requirement 1 DateAccounts and ExplanationDebitCredit 1-JanAcct rec15700 cash17,000 157000 Sales Revenue1700 ###Cash131000 Sales Revenue131000 1-JanAllowance for bad debt2,200 Acct rec2,200 Requirement 2 Accounts ReceivableAllowance for Bad Debts 31,000 131,000 paymentwrite off2,200 3000 sales157,000 2,200 write off800 54,800 Requirement 3 DateAccounts and ExplanationDebitCredit 12/31/2016Bad debts expense6280 Allowance for bad debt