Tax office pressed to recover its debts The Australian
"Therefore we take a conservative accounting approach."
According to Treasury, expected higher tax receipts are underpinned by the resources boom, but Mr Corman said it was a result of the government lifting taxes.
Mr Ravanello said the ATO took a conservative accounting approach and that the figure on the bad and doubtful debts provision was produced "for financial accounting and reporting purposes".
According to the budget papers, the ATO is forecast to write down expenses related to bad and doubtful debts of $6.39bn this year, compared with $6.87bn last year.
In 2012-13, the bad and doubtful debts and remissions expense is expected to be $6.83bn, rising to $7.25bn the next year.
Tax counsel for the Institute of Chartered Accountants, Yasser El-Ansary, said he had seen an increase in the ATO's efforts to pursue tax debts, particularly over the past 18 months.
"What is certainly evident from the marketplace is the tax office has ramped up in the past 18 or so months the debt-recovery action that they are now taking in cases where unpaid tax amounts are owing to the ATO for extended periods of time," he said.
Collection Agency
Debt collectors describe how they do their jobs--and why they prefer calling your relatives and neighbors!
Accounting question: What is the difference between bad debt recovery and bad debt reinstate ?
well a bad debt recovery is collection of funds that you have already written off as uncollectable.
A bad debt reinstate? Not really sure.
Accounting question: What is bad debt reinstate ?
I know what allowance for bad debt, or write offs are, and I know that if you're lucky enough to get payment on debt you already wrote off it is called "Bad debt recovery," but what is bad debt reinstate ?
Same thing as recovery. If you have written off the bad debt, you reinstate it if you ever get payment. I actually don't use the term bad debt recovery, only bad debt reinstate when posting.
I have trouble solving this wiley plus accounting problem do any know how to solve this problem?
P8-2A Journalize receivables transactions.
At the beginning of the current period, Fassi Corp. had balances in Accounts Receivable of $400,000 and in Allowance for Doubtful Accounts of $22,000 (credit). During the period, it had net credit sales of $880,000 and collections of $951,000. It wrote off accounts receivable of $20,000. However, a $4,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,000 at the end of the period.
Instructions
1. Prepare the entry to record sales and collections during the period.
2. Prepare the entry to record the write-off of uncollectible accounts during the period.
3. Prepare the entries to record the recovery of the uncollectible account during the period.
4. Prepare the entry to record bad debts expense for the period.
5. Determine the ending balances in Accounts Receivable $ and Allowance for Doubtful Accounts. $
GENERAL JOURNAL
Date Account Titles and ExplanationsDebitCredit
(a) 880,000
880,000
951,000
951,000
(b) Allowance for Doubtful Accounts
Accounts Receivable
(c) Accounts Receivable
Allowance for Doubtful Accounts
4,000
4,000
(d) Bad Debt Expense
Allowance for Doubtful Accounts
thank for your help
1) to record sales: DR Accounts Receivable, CR Sales for $880,000
1) to record collections: DR Cash, CR Accounts Receivable $951,000
2) to record write-off: DR Allowance for Doubtful Accounts, CR Accounts Receivable $20,000
3) to record recovery: DR Cash, CR Bad Debts Expense $4,000 (Although you could possibly post the credit to Allowance for Doubtful Accounts)
4) to record bad debt expense: DR Bad Debts Expense, CR Allowance for Doubtful Accounts $22,000
5) ending balance of Accounts Receivable $329,000 DR, ending balance of Allowance for Doubtful Accounts $23,000 CR
accounting question. Please someone help me...?
At December 31, 2007, Leis Co. reported the following information on its balance sheet
Accounts receivable $960,000
Less: Allowance for doubtful accounts $80,000
During 2008, the company had the following transactions related to receivables.
1. Sales on account – $3,200,000
2. Sales returns and allowances – $50,000
3. Collections of accounts receivable – $2,810,000
4. Write-offs of accounts receivable deemed uncollectible – $90,000
5. Recovery of bad debts previously written off as uncollectible – $24,000
Instructions
(1) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
(2) Enter the January 1, 2008 balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.
(3) Prepare the journal entry to record bad debts expense for 2008, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000.
(4) Compute the accounts receivable turnover ratio for 2008.
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My answer:
(1)
Accounts Receivable – $3,200,000
Sales -- $$3,200,000
Sales Returns and Allowances -- $50,000
Accounts Receivable -- $50,000
Cash -- $2,810,000
Account Receivable -- $2,810,000
Allowance for Doubtful accounts -- $90,000
Accounts receivable -- $90,000
Accounts Receivable -- $24,000
Allowance for doubtful account -- $24,000
Cash -- $24,000
Accounts receivable -- $24,000
(2)
・Account Receivable
(credit side) $960,000, $3,200,000, $24,000
(debit side) $50,000, $2,810,000, $90,000, $24,000
Total: $1,210,000 on credit
・Allowance for Doubtful Account
(credit side) $90,000
(debit side) $80,000, $24,000
Total: $14,000 on debit
Am I correct? I'm an international student and I'm struggling Accounting.
I really appreciate if someone could help me question (c) and (d) also.
Thank you.
You got Qn 1 all correct.
You got Qn 2 correct but all on the wrong side. You need to reverse your debits and your credits. AR is an asset and has a normal debit balance and no way could you have a credit balance of $1,210,000. The answer is a debit balance of $1,210,000.
Similarly, allowance for doubtful debts is a contra asset account and has a normal credit balance. The correct answer is a credit balance of $14,000.
Qn 3
Prepare the journal entry to record bad debts expense for 2008, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000.
You need your allowance for doubtful debts account to have a balance of $115,000, but you already have a balance of $14,000 in that account, so you only need another $101,000.
Dr Bad debts expense $101,000
Cr Allowance for doubtful debts $101,000
Qn 4
Compute the accounts receivable turnover ratio for 2008.
The receivable turnover ratio is calculated by dividing net credit sales by the average net receivables.
Net receivables for 2007: $960,000 - $80,000 = $880,000
Net receivables for 2008: $1,210,000 - $115,000 = $1,095,000
Average net receivables = ($880,000 + $1,095,000)/2 = $987,500
AR turnover ratio for 2008 = $3,150,000/987,500 = 3.19 times
ACCOUNTING help PLEASEEEEE!!!!!!?
P8-2A. At December 31, 2007, Curtis Imports reported this information on its balance sheet.
Accounts receivable$600,000
Less: Allowance for doubtful accounts 40,000
During 2008 the company had the following transactions related to receivables.
1. Sales on account$2,600,000
2.Sales returns and allowances 40,000
3.Collections of accounts receivable 2,200,000
4.Write-offs of accounts receivable deemed 45,000
Uncollectible
5. Recovery of bad debts previously written off 18,000
As uncollectible
Instructions
(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
(b)Enter the January 1, 2008, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.
(c)Prepare the journal entry to record bad debts expense for 2008, assuming that aging the accounts receivable indicates that estimated bad debts are $46,000.
(d)Compute the receivables turnover ratio and average collection period.
(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
1. Debit: Accounts Receivable 2,600,000
Credit: Sales 2,600,000
2. Debit: Sales Retuss and allowances 40,000
Credit: Accounts Receivable 40,000
3. Debit: Cash 2,200,000
Credit: Accounts Receivable 2,200,000
4. Debit: Allowance for Doubtful Accounts 45,000
Credit: Accounts Receivable 45,000
5. Debit: Accounts Receivable 18,000
Credit: Allowance for Doubtful Accounts 18,000
Debit: Cash 18,000
Credit: Accounts Receivable 18,000
(b)Enter the January 1, 2008, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.
Accounts Receivable Beginning: 600,000
Add Sales on Account: 2,600,000
Less Sales Returns: 40,000
Less Collections: 2,200,000
Less Write Offs: 45,000
Add Recovery: 18,000
Add Collections of Recovery:18,000
Accounts Receivable Ending:915,000
Allowance Beginning: 40,000
Less: Write off 45,000
Add: Recovery 18,000
Allowance Ending: 13,000
(c)Prepare the journal entry to record bad debts expense for 2008, assuming that aging the accounts receivable indicates that estimated bad debts are $46,000.
Debit: Bad Debts Expense 46,000
Credit: Allowance 46,000
(d)Compute the receivables turnover ratio and average collection period.
Receivables turnover is 3 times which is 2,560,000 divided by 856,000
Average collection period is 122 days which is 365 days over 3 times. If 360 days is used in the formula, 120 days.
Accounting Question, 10 points if answered correctly!! Please help?
December 31,2007 david Co. reported on balance sheet A/R $960000 and less Allowance for doubtful acc. 67,200.
In the first quarter of 2008 the company had the following transactions related to receivables.
1. Sales on account $3,200,000
2. Sales returns and allowances $50,000
3. Collections of accounts receivable $3,000,000
4. Write-off of accounts considered uncollectible, $90,000
5. Recovery of accounts previously written off as uncollectible $18,000
A. Prepare the summary journal entries to record each of these five transactions
B. Enter the January 1, 2008 balance in the Acc.Recivable and Allowance for Doubtful account and general ledger account. Post the entries to the two accounts and determine the balances.
C. Record bad debts expense for the first quarter of 2008. Uncollectible accounts are estimated at 7% of accounts receivable.
D. Calculate the net realizable value of accounts receivable at the end of the first quarter.
Please and Thank you!!
i don't need the points and you will get more answers if you post over in the homework section!!!
Please Help with Accounting Question!!?
Please and Thank You!!
December 31,2007 david Co. reported on balance sheet A/R $960000 and less Allowance for doubtful acc. 67,200.
In the first quarter of 2008 the company had the following transactions related to receivables.
1. Sales on account $3,200,000
2. Sales returns and allowances $50,000
3. Collections of accounts receivable $3,000,000
4. Write-off of accounts considered uncollectible, $90,000
5. Recovery of accounts previously written off as uncollectible $18,000
A. Prepare the summary journal entries to record each of these five transactions
B. Enter the January 1, 2008 balance in the Acc.Recivable and Allowance for Doubtful account and general ledger account. Post the entries to the two accounts and determine the balances.
C. Record bad debts expense for the first quarter of 2008. Uncollectible accounts are estimated at 7% of accounts receivable.
D. Calculate the net realizable value of accounts receivable at the end of the first quarter.
thanks!!
What do you need help on. . .? You can't expect anyone to do ALL that work for you. . .
Recovering an previously written-off account?
Hefner Company uses the allowance method to account for bad debts. An account that had been previously written-off as uncollectible was recovered. How would the recovery affect the company's accounting equation?
a) Increase assets and increase equity
b) Increase assets and decrease liabilities
c) Reduce liabilities and increase equity
d) Have no effect on assets, liabilities or equity
The answer is D as the transactions would all occur on the asset side of the equation and cancel each other out. When an account is written off to an allowance, Accounts Receivable is credited and Allowance for Doubtful Accounts (a contra-asset to A/R) is debited. If that account was subsequently recovered, then Cash would be debited for the amount received, with the credit going to Allowance for Doubtful Accounts. As all three of these accounts are on the asset side of the accounting equation, there would be no affect on Total Assets.
Financial Accounting: Reporting and Analyzing Receivables?
At the beginning of the current period, Fassi Corp. had balances in Accounts Receivable of $400,000 and in Allowance for Doubtful Accounts of $22,000 (credit). During the period, it had net credit sales of $950,000 and collections of $1,021,000. It wrote off accounts receivable of $29,000. However, a $2000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $18,000 at the end of the period.
a) Prepare the entries to record sales and collections
b) Prepare the entry to record the write-off of uncollectible accounts
c) Prepare the entries to record the recovery of the uncollectible account
d) Prepare the entry to record bad debts expense for the period
e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
I can't seem to get the bad debts expense entry and thus my ending balance for the Allowance for D.A. is incorrect. Any help with d) and e) would be appreciated, thanks.
I'm well on my way to an BA in Accounting and I hope to be a CPA eventually.? But from my past...?
bad credit and legal problems. I'm an alcoholic in recovery and I love being sober and I love college and I love accounting. In 2001 I got a class D felony DUI. About that time got myself into bad debt. In the years since then unpaid debt has been added to my credit history and my score is about 510. Will anybody hire me as an accountant (in a couple of years) with a nearly 10 year old driving felony and bad credit that is going unpaid for now. If I do get a good job I will consolidate my $12,000 of unpaid bad debt with my student loans which have not defaulted. Then I will work on improving my credit and paying off my debts. But I need the good job first. I am good at accounting and I will pass the CPA but I'm worried that nobody will hire me.
In Fact, Everybody Has To Begin Somewhere.
When referring to commercial or retail property management, just how you as the estate boss serve the customer will be critical to the way forward for the building and the property performance. All these factors manifest themselves in gaffes of building equilibrium and money flow. Commercial and Retail Property management services are quite specialised. Some of the primary elements which make up the management service include : The lease management services Tenancy communication and management Vacancy minimisation programs The promotion of empty grounds into the local economy community Rental and lease research to agree lease options and hire reviews across the tenancy mix Leasing of empty grounds and coordination of tenancy entry or exit to the building Upkeep activities and controls on an everyday basis Rebuilding and rebuilding programs integrated into the operation of the building Invoicing of rental as per the details of the lease Control over building spending in accordance with the building budget and owners authorities Conglomerate of yearly building budgets that target of the owners investment plans The tracking of sales relative to retail renters if pertinent The research and balance of the tenancy mix so the renters inspire building performance and consumer visitation Optimization of client common area use like vehicle parks, malls, food courts, toilets, and access points. Keeping records of all property activity just must be done right.
It is advantageous to split the building records and files into separate classes for easy access. The primary classes can be like : Renter ( renter related revenue, spending, all communications, agreements, directions, talks ) Lease ( lease documents, side agreements, notices, hire reviews, options, renewals, talks, records and standing of active motivations ) Fiscal ( building related performance to budget, approved spending, general expenditure, historic spending, records of payments and invoices ) Upkeep ( details of orders of works, contractor reports, risk related upkeep, necessary services ) and split this file into the kinds of kit and plant in the property Contractor ( tenders, quotes, communications, insurance, records of performance ) Legal ( anything that's legally related to property performance, or lease occupancy ) Insurance ( claims, quotes, renewals, policy details, claim forms ) Capital Spending ( this is to isolate the bigger capital cost items that aren't ordinary operational upkeep in the property ) Valuation ( details of any valuation and update that could have been provided to the owner or the banker for the property ) Owners file ( reports to owner, directions from owner, yearly budget and suggestions ) You are able to add to this list as needed and it'll aid you in keeping the property in order, your daily jobs as property executive will get more correct. Everybody benefits including the owner, renter, and property chief. With an integral system, renter screening info is mechanically downloaded into your home property management database. Later on you can review renter payment history and property upkeep history and make smart choices about lease management. Providing renters with online lease payment options ,eg ACH or visa cards, helps lower delinquencies and keep rental earnings at its ideal level.
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Debt Directory
Allowance Method
The amount of the bad debt expense for the entry is the amount that is needed to ... any bad debt expense on an estimate using either net sales or accounts ...
Bad Debt Recovery: Definition from Answers.com
Account receivable previously written off as uncollectible is now collected. The entry is to reverse the original write-off by debiting accounts
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The accounting treatment accorded a recovered bad debt depends on whether the business uses the cash or accrual basis of accounting. The Facts ...
accounting bad debt recovery - Debt < BondsDebt.net
Bad Debt Recovery A debt from a loan, credit line or accounts receivable that is recovered either in whole or in part after it has been. ...
Recovery of Bad Debt Accounting | eHow.co.uk
The accounting treatment accorded a recovered bad debt depends on whether the business uses the cash or ... Auditors like to keep an eye on the level of bad debt recovery. ...
