محا 804 مراجعة التطبيق الثاني

One of the methods used to in accounting to record non collectable accounts is

• Double Decline

• Direct Method

Effect of Bad Debt Expense on company profit 

• Increase Profit

• Decrease Profit

Journal Entry to record the unncollectable account under the Direct write off Method

• Debit.Account Receivable            Credit. Sales

• Debit. Cash                                  Credit. Bad Debt Expense

• Debit.Account Receivable            Credit. Bad Debts Expense

• Debit.Bad Debt Expense              Credit. Account Receivable

Journal Entry to record the non collectable account under the allowances method 

• Debit.Bad Debt Expense              Credit. Allowance for doubtful debts

• Debit. Cash                                  Credit. Bad Debt Expense

• Debit.Account Receivable            Credit. Bad Debts Expense

• Debit.Bad Debt Expense              Credit. Account Receivable

On Sept 16,2020 Manama Travel Agency sold an airline tickets for BD300 to a customer who paid by Visa Card, if the service charges is 2% the journal entry will be

• Debit. Cash  BD294 and Debit .Credit Card Expense BD6           Credit. Revenues BD300

• Debit. Cash BD300                  Credit. Revenues BD300

On Sept 16,2020 Manama Travel Agency sold an airline tickets for BD2000 to a customer who paid by American Express Card, if the service charges is 5% the journal entry will be

• Debit. Cash BD1900 and Debit .Credit Card Expense BD100 Credit. Revenues BD2000

• Debit. Account Receivable BD1900 and Debit .Credit Card Expense BD100 Credit. Revenues BD2000