March 2, 2015

Homework Help: accounting

Posted by Chopsticks on Sunday, February 1, 2009 at 10:35pm.

Anzlyzing financial statement effects of accounting for bad debits using the allownace method.

Duffy Bros. uses the allowance method to account for bad debets expense. Duffy experienced the following four events in 2008:

1.Recognition of 64,000 of service revenue on account

2. Collection of 56,000 cash from accounts receievable

3. Determination that 900 of its accoutns were not collectible and wrote off these receivables.

4. Recogition of bad debits expense for the year. Duffy estimates that bad debits expense will be 2 percent of its sales

My Answers:
1. Debit Accounts receivable 64,000
Credit Service Revenue 64,000

2. Debit Cash 56,000
Credit Accounts receivable 56,000

3. Debit Allowance for Doubtful accounts 900
Credit Accoutns receivable 900

4. I dont know

Are those right? Please help me.

Answer this Question

First Name:
School Subject:

Related Questions

accounting - For each of the following, indicate the accounting concept or ...
Financial Accounting - Use the following information to answer multiple-choice ...
math - Information related to Hermesch Company for 2011 is summarized below. ...
accounting - Journalize the write-offs and the year-end adjusting entry for 2012...
accounting - Sherrod, Inc., reported pretax accounting income of $89 million for...
Intermediate accounting - Rosson Corporation, which began business on January 1...
Principles of Accounting 1 - I need help please I don't understand this at all. ...
accounting - Valmont, Inc. experienced the following events in 2012, in its ...
finance - a financial mgr is considering operating a lock box. she forecast that...
Accounting - Is it ethical to lengthen asset lives to reduce depreciation ...