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Exam 9: Receivables

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Question 31

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At the end of the current year,Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000.An analysis of receivables estimates uncollectible receivables as $25,000.​Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts,respectively.​

A) $19,500 and $25,000
B) $30,500 and $525,000
C) $19,500 and $525,000
D) $30,500 and $25,000

E) A) and B)
F) A) and C)

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Question 32

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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.

A) True
B) False

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Question 33

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Journalize the following transactions using the allowance method of accounting for uncollectible receivables.​Apr.1 Sold merchandise on account to Jim Dobbs,$7,200.The cost of the merchandise is $5,400.​June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.​Oct.11 Reinstated the account of Jim Dobbs and received cash in full payment.

For each of the following notes receivables held by Winter Company,determine the interest revenue to be reported on the income statements.Round answers to nearest whole dollar.

At the end of the current year,Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000.An analysis of receivables estimates uncollectible receivables as $25,000.​Determine (a)the amount of the adjusting entry for bad debt expense; (b)the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts,and Bad Debt Expense; and (c)the net realizable value of accounts receivable.

Interest on a note can be calculated without knowledge of the

At the end of the current year,Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000.An analysis of receivables estimates uncollectible receivables as $25,000.​Determine the net realizable value of accounts receivable after adjustment. (Hint: Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts.) ​

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

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

When a company uses the allowance method of accounting for uncollectible receivables,the entry to reinstate a previously written off account would include a

On October 1,Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable.The note is due in six months.At December 31,Black should record interest revenue of

At the end of the current year,Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a debit balance of $6,200; and sales for the year total $3,500,000.Bad debt expense is estimated at ½ of 1% of sales.​Determine (a)the amount of the adjusting entry for bad debt expense; (b)the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts,and Bad Debt Expense; and (c)the net realizable value of accounts receivable.

No allowance account is used with the direct write-off method.

At the end of the current year,Accounts Receivable has a balance of $90,000; Allowance for Doubtful Accounts has a credit balance of $850; and sales for the year total $300,000.Bad debt expense is estimated at 2.5% of sales.​Determine (a)the amount of the adjusting entry for uncollectible accounts; (b)the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts,and Bad Debt Expense; and (c)the net realizable value of accounts receivable.

In computing the maturity date of a note,the date the note is issued is included but the due date is omitted.

A primary difference between the direct write-off and allowance methods is whether or not bad debt is based on a percentage of sales.

The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivable are uncollectible.Allowance for Doubtful Accounts has a debit balance of $110.The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of

Match each description to the appropriate term (a-h) . -A formal,written instrument of credit that represents amounts due from customers

At the end of the current year,Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000.An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.​Determine (a)the amount of the adjusting entry for bad debt expense; (b)the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts,and Bad Debt Expense; and (c)the net realizable value of accounts receivable.

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