Cairo CoUses the Allowance Method of Accounting for Uncollectible Accounts

question 168

Essay

Cairo Co.uses the allowance method of accounting for uncollectible accounts.Cairo Co.accepted a $5,000,12%,3-month note dated May 16,from Alexandria Co.in exchange for its past-due account receivable.
Required:
Part a.Prepare the journal entry for the receipt of the note on May 16.
Part b.Prepare the journal entries for (1)the receipt of interest and (2)the receipt of the principal balance at maturity on August 14.
Part c.Assume that Alexandria made the interest payment but not the principal payment on August 14.On November 30,Cairo writes off the note when it becomes clear that Alexandria will never pay.Prepare the journal entry to write-off the note receivable.

---

Definitions:

Emergent Norms

Social norms that develop spontaneously in response to new situations or emergencies, guiding behavior in the absence of established rules.

Resource Mobilization

The process of gathering and deploying both tangible and intangible resources (such as money, support, and information) to achieve specific organizational or social goals.

Collective Action

Activities undertaken by a group of people with the aim of achieving a common goal, often used in the context of social movements and protests.

Organizational

Pertaining to the structure and function of organizations, including their management, culture, and operational dynamics.