KPMD is a CPA firm that provides audits,tax work and management advisory services to the Yellowstone region of Wyoming.On December 31,2009 the end of KPMD's fiscal year it had Accounts Receivable of $70,000 and a debit balance in its Allowance for Doubtful Accounts of $1,000.On December 31 KPMD estimated that $4,000 of the accounts receivable would be uncollectible.Then on February 5,2010 they wrote off Shirley Logston's receivable for $500.
Required:
1.Make the entry to record the year end adjustment of Accounts Receivable
2.Show how Accounts Receivable would be presented on the 12/31/09 Balance Sheet
3.Make the entry to write of Shirley Logston's Accounts Receivable on Feb 5,2010.
4.How much will the assets of KPMD be reduced when Shirely's Accounts Receivable
is written off?

Question

KPMD is a CPA firm that provides audits,tax work and management advisory services to the Yellowstone region of Wyoming.On December 31,2009 the end of KPMD's fiscal year it had Accounts Receivable of $70,000 and a debit balance in its Allowance for Doubtful Accounts of $1,000.On December 31 KPMD estimated that $4,000 of the accounts receivable would be uncollectible.Then on February 5,2010 they wrote off Shirley Logston's receivable for $500.
Required:
1.Make the entry to record the year end adjustment of Accounts Receivable
2.Show how Accounts Receivable would be presented on the 12/31/09 Balance Sheet
3.Make the entry to write of Shirley Logston's Accounts Receivable on Feb 5,2010.
 4.How much will the assets of KPMD be reduced when Shirely's Accounts Receivable
is written off?

Quizplus · Accepted Answer

The Answer of KPMD is a CPA firm that provides audits,tax work and management advisory services to the Yellowstone region of Wyoming.On December 31,2009 the end of KPMD's fiscal year it had Accounts Receivable of $70,000 and a debit balance in its Allowance for Doubtful Accounts of $1,000.On December 31 KPMD estimated that $4,000 of the accounts receivable would be uncollectible.Then on February 5,2010 they wrote off Shirley Logston's receivable for $500.
Required:
1.Make the entry to record the year end adjustment of Accounts Receivable
2.Show how Accounts Receivable would be presented on the 12/31/09 Balance Sheet
3.Make the entry to write of Shirley Logston's Accounts Receivable on Feb 5,2010.
 4.How much will the assets of KPMD be reduced when Shirely's Accounts Receivable
is written off?

KPMD Is a CPA Firm That Provides Audits,tax Work and Management