Question 1

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

Accepted Answer

A)   debit to Allowance for Doubtful Accounts
B)   credit to Cash
C)   debit to Accounts Receivable, James
D)   credit to Bad Debt ExpenseE) A) and D)
F) A) and B)

Question 2

On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is equal to the

Accepted Answer

A)   uncollectible accounts expense for the year
B)   total of the accounts receivable written off during the year
C)   total estimated uncollectible accounts as of the end of the year
D)   sum of all accounts that are past dueE) A) and D)
F) All of the above

Question 3

Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 the company receives a $550 check from Chad Thomas in settlement of Thomas's $1,100 outstanding accounts receivable. Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration.

Accepted Answer

The answer of Discount Mart utilizes the allowance method of...

Question 4

The due date of a 60-day note dated July 10 is September 10.

Accepted Answer

A) True 
 B)False

Question 5

At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, $120 of previously written off accounts are reinstated and accounts totaling $740 are written off as uncollectible. The end-of-year balance (before adjustment)  in Allowance for Doubtful Accounts should be

Accepted Answer

A)   $760
B)   $120
C)   $140
D)   $740E) C) and D)
F) B) and D)

Question 6

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Accepted Answer

A)   $29,500
B)   $34,500
C)   $32,000
D)   cannot be determinedE) A) and B)
F) C) and D)

Question 7

When does an account become uncollectible?

Accepted Answer

A)   when accounts receivable is converted into notes receivable
B)   when a discount is available on notes receivable
C)   there is no general rule for when an account becomes uncollectible
D)   at the end of the fiscal yearE) A) and D)
F) A) and C)

Question 8

A disadvantage of factoring is that the company selling its receivables immediately receives cash.

Accepted Answer

A) True 
 B)False

Question 9

What is the effect on the accounting equation when a company receives payment on a note receivable, including interest?

Accepted Answer

Assets both increase and decre...

Question 10

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

Accepted Answer

A)   Bad Debt Expense  500 \quad 500 500 Allowance for Doubtful Accounts  500 \quad 500 500 
B)   Bad Debt Expense  500 \quad 500 500 Accounts Receivable, Bob Smith 500 \quad 500 500 
C)     Cash 300 Allowance for Doubtful Accounts 200 Accounts Receivable, Bob Smith 500\begin{array}{l}\begin{array} { l l } 	ext { Cash } & 300 \	ext { Allowance for Doubtful Accounts } & 200\end{array}\	ext { Accounts Receivable, Bob Smith } \quad 500\end{array} Cash  Allowance for Doubtful Accounts ​300200​ Accounts Receivable, Bob Smith 500​ 
D)    Cash 500 \begin{array}{ll}	ext { Cash } & 500\end{array}  Cash ​500​ Accounts Receivable, Bob Smith  500 \quad 500 500E) All of the above
F) None of the above

Question 11

The following information was taken from the financial records of Sodigaz, Inc.  ​ The accounts receivable turnover for each year is

Accepted Answer

A)   Year 1: 9.4; Year 2: 7.0
B)   Year 1: 14.7; Year 2: 9.6
C)   Year 1: 8.1; Year 2: 11.5
D)   Year 1: 11.5; Year 2: 8.1E) All of the above
F) B) and D)

Question 12

Journalize the following transactions (assume a 360-day year when calculating interest):

Accepted Answer

The answer of Journalize the following transactions (assume a 360-day...

Question 13

When using the analysis of receivables method for estimating uncollectible receivables, the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.

Accepted Answer

A) True 
 B)False

Question 14

At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $5,000. The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $50,000. The amount to be recorded in the adjusting entry for the Bad Debt Expense is $45,000.

Accepted Answer

A) True 
 B)False

Question 15

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

Accepted Answer

A)   Uncollectible Accounts Expense
B)   Accounts Receivable
C)   Allowance for Doubtful Accounts
D)   Interest ExpenseE) B) and C)
F) C) and D)

Question 16

At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $250. The credit sales for the period total $500,000. If the company estimates uncollectible accounts at 1% of credit sales, the amount of bad debt expense to be recorded in an adjusting entry is $4,750.

Accepted Answer

A) True 
 B)False

Question 17

An aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)   debit to Allowance for Doubtful Accounts for $3,200
B)   debit to Bad Debt Expense for $3,200
C)   debit to Allowance for Doubtful Accounts for $4,000
D)   credit to Allowance for Doubtful Accounts for $4,000E) A) and D)
F) None of the above

Question 18

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

Accepted Answer

A)   debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
B)   debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200
C)   debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600
D)   debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600E) A) and C)
F) B) and C)

Question 19

Journalize the following transactions of Upton Drugs:

Accepted Answer

The answer of Journalize the following transactions of Upton Drugs:...

Question 20

The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Accepted Answer

A) True 
 B)False

Exam 8: Receivables

The due date of a 60-day note dated July 10 is September 10.

Correct Answer
verified

Correct Answer
verified

What is the effect on the accounting equation when a company receives payment on a note receivable, including interest?

Correct Answer
verified
Assets both increase and decre...
View Answer

Journalize the following transactions (assume a 360-day year when calculating interest):

Correct Answer
verified

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

Correct Answer
verified

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Correct Answer
verified

Correct Answer
verified

The following information was taken from the financial records of Sodigaz, Inc. The accounts receivable turnover for each year is

Correct Answer
verified

The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Correct Answer
verified

On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is equal to the

Correct Answer
verified

Correct Answer
verified

An aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct Answer
verified

When using the analysis of receivables method for estimating uncollectible receivables, the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.

Correct Answer
verified

Journalize the following transactions of Upton Drugs:

Correct Answer
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Correct Answer
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Correct Answer
verified

When does an account become uncollectible?

Correct Answer
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A disadvantage of factoring is that the company selling its receivables immediately receives cash.

Correct Answer
verified

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

Correct Answer
verified

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

Correct Answer
verified

Exam 8: Receivables

The due date of a 60-day note dated July 10 is September 10.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the effect on the accounting equation when a company receives payment on a note receivable, including interest?

Correct AnswerverifiedAssets both increase and decre...View AnswerShow Answer

Journalize the following transactions (assume a 360-day year when calculating interest):

Correct AnswerverifiedShow Answer

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following information was taken from the financial records of Sodigaz, Inc. ​ The accounts receivable turnover for each year is

Correct AnswerverifiedShow Answer

The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Correct AnswerverifiedShow Answer

On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is equal to the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct AnswerverifiedShow Answer

When using the analysis of receivables method for estimating uncollectible receivables, the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.

Correct AnswerverifiedShow Answer

Journalize the following transactions of Upton Drugs:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When does an account become uncollectible?

Correct AnswerverifiedShow Answer

A disadvantage of factoring is that the company selling its receivables immediately receives cash.

Correct AnswerverifiedShow Answer

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

Correct AnswerverifiedShow Answer

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Assets both increase and decre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The following information was taken from the financial records of Sodigaz, Inc. The accounts receivable turnover for each year is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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