On December 31, 2013, the Juniper Corporation estimated that $3,000 of its receivables might not be collected. The balance of Accounts Receivable and the Allowance for Doubtful Accounts respectively was $75,000 and zero on 12/31/13. On February 1, 2014, Juniper wrote-off of a delinquent account from one of its customers. Juniper Corp. uses the allowance method of accounting for uncollectible accounts. Indicate whether each of the following statements is true or false.
_____a) The net realizable value of accounts receivable (after the appropriate adjusting entry on 12/31/13) was $75,000.
_____b) The write-off of the account on 2/1/2014 did not affect the net realizable value of Juniper's accounts receivable.
_____c) The adjusting entry on 12/31/13 had no effect on Juniper's total assets.
_____d) The write-off entry on 2/1/13 had no effect on Juniper's total assets.
_____e) The write-off entry on 2/1/13 decreased net income for 2014.

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2013, the Juniper Corporation estimated that $3,000 of its receivables might not be collected. The balance of Accounts Receivable and the Allowance for Doubtful Accounts respectively was $75,000 and zero on 12/31/13. On February 1, 2014, Juniper wrote-off of a delinquent account from one of its customers. Juniper Corp. uses the allowance method of accounting for uncollectible accounts. Indicate whether each of the following statements is true or false.
_____a) The net realizable value of accounts receivable (after the appropriate adjusting entry on 12/31/13) was $75,000.
_____b) The write-off of the account on 2/1/2014 did not affect the net realizable value of Juniper's accounts receivable.
_____c) The adjusting entry on 12/31/13 had no effect on Juniper's total assets.
_____d) The write-off entry on 2/1/13 had no effect on Juniper's total assets.
_____e) The write-off entry on 2/1/13 decreased net income for 2014.

On December 31, 2013, the Juniper Corporation Estimated That $3,000