Assume That on January 15, a Customer Who Owes Shawni $\begin{array}{lll}\text { Allowance for uncollectible } &1,000\\\text { Accounts receivable, customer account }&&1,000\end{array}$

question 100

Short Answer

Assume that on January 15, a customer who owes Shawni sales company $1,000 is declared bankrupt by a federal court. The entry that would be made to write off this account is: a. $\begin{array}{lll}\text { Allowance for uncollectible } &1,000\\\text { Accounts receivable, customer account }&&1,000\end{array}$

b. $\begin{array}{lll}\text { Accounts receivable } \quad\quad\quad\quad\quad\quad\quad\quad& 1,000 & \\\quad \text { Cash } & & 1,000\end{array}$

c. $\begin{array}{lcc}\text { Accounts receivable }&1,000 \\\quad \text { Notes receivable }\quad\quad\quad\quad\quad\quad\quad\quad\quad&&1,000\end{array}$

d. $\begin{array}{lll}\text { Cash } & 1,000 \\\quad \text { Accounts Receivable } \quad\quad\quad\quad\quad\quad\quad&& 1,000 & \\\end{array}$

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Definitions:

LIFO-to-FIFO Adjustment

A recalculation process that converts inventory valuation from the Last-In-First-Out (LIFO) method to the First-In-First-Out (FIFO) method, affecting cost of goods sold and inventory value.

Inventory

The total amount of goods and materials held by a company that are available for sale or production.

LIFO

Last In, First Out is a method of valuing inventory in which items that are produced last are sold before those that are produced earlier.

FIFO Cost

First-In, First-Out cost method; an inventory valuation strategy where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.