Flowers and Fluff frequently receives rush orders for floral deliveries. Some of these orders are on account. Occasionally, customers do not pay for their orders. Flowers and Fluff is a small business and is not too concerned about exactly following generally accepted accounting principles. Review the two following "open" accounts and determine which should be written off. Flowers and Fluff prefers to use the direct write-off method and routinely reviews all accounts that are more than 90 days past due. I need help with the worksheet on the excel. B-07.03
Prepare the journal entry necessary to write of the "bad" account.
Flowers and Fluf ±requently receives rush orders ±or ²oral deliveries.
Some o± these orders
are on account.
Occasionally, customers do not pay ±or their orders.
Flowers and Fluf is a
small business and is not too concerned about exactly ±ollowing generally accepted
Review the two ±ollowing "open" accounts and determine which
should be written of.
Flowers and Fluf pre±ers to use the direct write-of method and
routinely reviews all accounts that are more than 90 days past due.
Vince Colioni ordered ²owers to be delivered to his girl±riend.
Un±ortunately, a bee
was delivered along with the ²owers, and Vince and his girl±riend spent the evening
at the emergency room nursing a bad sting.
Vince had planned to propose marriage
Vince owes $125 ±or the ²owers.
The account is six months past due,
and under the circumstances, the owners o± Flowers and Fluf have no plans to press
Vince ±or payment.
Rebecca Warren ordered ²owers to be delivered to a ±riend in the hospital.
owes $60, and the account is ±our months past due.
The owners o± Flowers and
Fluf just realized that the bill was sent to Warren Rebecca, a diferent customer.
Rebecca Warren has since moved to a distant town, but was last known to be a
The owners o± Flowers and Fluf are now trying to get a new
address ±or Rebecca Warren ±rom her ±riend that was in the hospital.
When and how might a business choose to ignore GAAP and use the direct write-of
What is the USA tax code position on the direct write-of method, and how might
Flowers and Fluf be simpli±ying their record keeping issues by using the direct write-
obligations to shareholders select this simpli±ying option?
How does the existence o± "other" questionable accounts potentially produce
misleading ³nancial reports?