Question 1

The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each.
(a)
   (b)

Accepted Answer

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Question 2

The party promising to pay a note at maturity is the maker.

Accepted Answer

A) True 
 B)False

Question 3

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Accepted Answer

A)  affects only income statement accounts. 
B)  is not an acceptable practice. 
C)  affects only balance sheet accounts. 
D)  affects both balance sheet and income statement accounts. 
A)  affects only income statement accounts. 
B)  is not an acceptable practice. 
C)  affects only balance sheet accounts. 
D)  affects both balance sheet and income statement accounts.

Question 4

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

Accepted Answer

A)  $760 
B)  $120 
C)  $140 
D)  $740 
A)  $760 
B)  $120 
C)  $140 
D)  $740

Question 5

At the end of a period (before adjustment), Allowance for Doubtful Accounts has a debit balance of $2,000. The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $15,000. The amount to be recorded in the adjusting entry for the bad debt expense is $15,000.

Accepted Answer

A) True 
 B)False

Question 6

When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.

Accepted Answer

A) True 
 B)False

Question 7

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?

Accepted Answer

A)  $51,000 
B)  $289,000 
C)  $340,000 
D)  $391,000 
A)  $51,000 
B)  $289,000 
C)  $340,000 
D)  $391,000

Question 8

The balance in Allowance for Doubtful Accounts will directly impact the end of period adjustment for the bad debt expense when using which of the following methods?

Accepted Answer

A)  Allowance method 
B)  Direct write-off method 
C)  Accrual method 
D)  declining value method 
A)  Allowance method 
B)  Direct write-off method 
C)  Accrual method 
D)  declining value method

Question 9

When a note is written to settle an open account, no entry is necessary.

Accepted Answer

A) True 
 B)False

Question 10

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 net 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 of Doubtful Accounts, respectively.

Accepted Answer

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

Question 11

When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

Accepted Answer

A) True 
 B)False

Question 12

Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?

Accepted Answer

A)  Cash 200 Interest Revenue 200 
B)  Interest Receivable 800 Interest Revenue 800 
C)  Interest Receivable 200 Interest Revenue 200 
D)  Note Receivable 40,000 Cash 40,000 
A)  Cash 200 Interest Revenue 200 
B)  Interest Receivable 800 Interest Revenue 800 
C)  Interest Receivable 200 Interest Revenue 200 
D)  Note Receivable 40,000 Cash 40,000

Question 13

The following are the current assets from Hanes Co. as of December 31, 2014:
   Prepare the current asset section of the balance sheet.

Accepted Answer

Hanes Co.
Balance Sh

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Accepted Answer

Under the direct write-off method, Bad D

Question 16

Determine the due date and amount of interest due at maturity on the following notes:

Accepted Answer

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Question 17

Stephanie Roe utilizes the direct write-off method of accounting for uncollectible receivables. On September 15th she is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation of Jacob Marley. Write off the $675 of accounts receivable due Jacob Marley.

Accepted Answer

Sept 15th Bad Debt E

Question 18

Given the following information, compute Accounts Receivable Turnover:

Accepted Answer

A)  6.75 
B)  7.5 
C)  6.13 
D)  6.82 
A)  6.75 
B)  7.5 
C)  6.13 
D)  6.82

Question 19

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)  debit to Bad Debt Expense for $7,700. 
B)  debit to Bad Debt Expense for $6,400. 
C)  debit to Bad Debt expense for $5,100 
D)  credit to Allowance for Doubtful Accounts for $1,300. 
A)  debit to Bad Debt Expense for $7,700. 
B)  debit to Bad Debt Expense for $6,400. 
C)  debit to Bad Debt expense for $5,100 
D)  credit to Allowance for Doubtful Accounts for $1,300.

Question 20

Determine the due date and the amount of interest due at maturity on the following notes:

Accepted Answer

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The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each. (a) (b)

The party promising to pay a note at maturity is the maker.

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?

The balance in Allowance for Doubtful Accounts will directly impact the end of period adjustment for the bad debt expense when using which of the following methods?

When a note is written to settle an open account, no entry is necessary.

When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?

The following are the current assets from Hanes Co. as of December 31, 2014: Prepare the current asset section of the balance sheet.

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

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Determine the due date and amount of interest due at maturity on the following notes:

Given the following information, compute Accounts Receivable Turnover:

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a

Determine the due date and the amount of interest due at maturity on the following notes:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 9: Receivables

The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each. (a) (b)

The party promising to pay a note at maturity is the maker.

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?

The balance in Allowance for Doubtful Accounts will directly impact the end of period adjustment for the bad debt expense when using which of the following methods?

When a note is written to settle an open account, no entry is necessary.

When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?

The following are the current assets from Hanes Co. as of December 31, 2014: Prepare the current asset section of the balance sheet.

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

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Determine the due date and amount of interest due at maturity on the following notes:

Given the following information, compute Accounts Receivable Turnover:

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a

Determine the due date and the amount of interest due at maturity on the following notes:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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