Question 1

Allowance for Doubtful Accounts is a liability account.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

The answer of The following journal entries would be used...

Question 3

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

Accepted Answer

A) Liabilities decrease. 
B) Net Income is unchanged. 
C) Total Assets are unchanged. 
D) Total Assets decrease. 
A) Liabilities decrease. 
B) Net Income is unchanged. 
C) Total Assets are unchanged. 
D) Total Assets decrease.

Question 4

A 60-day,9% note for $10,000,dated May 1,is received from a customer on account.The maturity value of the note is

Accepted Answer

A) $10,000 
B) $10,150 
C) $10,900 
D) $9,100 
A) $10,000 
B) $10,150 
C) $10,900 
D) $9,100

Question 5

On the basis of the following data related to assets due within one year for Webb Co. ,prepare a partial balance sheet in good form at December 31,2014. Show total current assets.

Accepted Answer

The answer of On the basis of the following data...

Question 6

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

Accepted Answer

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

Question 7

Receivables not currently collectible are reported in the investments section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

If a promissory note is dishonored,the payee should still record interest revenue.

Accepted Answer

A) True 
 B)False

Question 9

A debit balance in the Allowance for Doubtful Accounts

Accepted Answer

A) is the normal balance for that account. 
B) indicates that actual bad debt write-offs have been less than what was estimated. 
C) cannot occur if the percentage of receivables method of estimating bad debts is used. 
D) indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. 
A) is the normal balance for that account. 
B) indicates that actual bad debt write-offs have been less than what was estimated. 
C) cannot occur if the percentage of receivables method of estimating bad debts is used. 
D) indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.

Question 10

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,$29,600 
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,$29,600

Question 11

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

Question 12

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 13

If the maker of a promissory note fails to pay the note on the due date,the note is said to be

Accepted Answer

A) displaced 
B) disallowed 
C) dishonored 
D) discounted 
A) displaced 
B) disallowed 
C) dishonored 
D) discounted

Question 14

One of the weaknesses of the direct write-off method is that it

Accepted Answer

A) understates accounts receivable on the balance sheet 
B) violates the matching principle 
C) is too difficult to use for many companies 
D) is based on estimates 
A) understates accounts receivable on the balance sheet 
B) violates the matching principle 
C) is too difficult to use for many companies 
D) is based on estimates

Question 15

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 16

a)The aging of Torme Designs shown below.Calculate the amount of each periodicity range that is deemed to be uncollectible.
   
b)If the Allowance for Doubtful Accounts has a credit balance of $1,135.00,record the adjusting entry for the bad debt expense for the year.

Accepted Answer

@#IMG-DLM& Dec 31 Uncollectibl

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

An alternative name for Bad Debt Expense is

Accepted Answer

A) Collection Expense. 
B) Credit Loss Expense. 
C) Uncollectible Accounts Expense. 
D) Deadbeat Expense. 
A) Collection Expense. 
B) Credit Loss Expense. 
C) Uncollectible Accounts Expense. 
D) Deadbeat Expense.

Question 19

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment),and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000.Based on the estimate above,which of the following adjusting entries should be made?

Accepted Answer

A) debit Bad Debt Expense,$800;credit Allowance for Doubtful Accounts,$800 
B) debit Bad Debt Expense,$15,200;credit Allowance for Doubtful Accounts,$15,200 
C) debit Allowance for Doubtful Accounts,$800;credit Bad Debt Expense,$800 
D) debit Bad Debt Expense,$16,800;credit Allowance for Doubtful Accounts,$16,800 
A) debit Bad Debt Expense,$800;credit Allowance for Doubtful Accounts,$800 
B) debit Bad Debt Expense,$15,200;credit Allowance for Doubtful Accounts,$15,200 
C) debit Allowance for Doubtful Accounts,$800;credit Bad Debt Expense,$800 
D) debit Bad Debt Expense,$16,800;credit Allowance for Doubtful Accounts,$16,800

Question 20

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?

Accepted Answer

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

Allowance for Doubtful Accounts is a liability account.

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

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

A 60-day,9% note for $10,000,dated May 1,is received from a customer on account.The maturity value of the note is

On the basis of the following data related to assets due within one year for Webb Co. ,prepare a partial balance sheet in good form at December 31,2014. Show total current assets.

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

Receivables not currently collectible are reported in the investments section of the balance sheet.

If a promissory note is dishonored,the payee should still record interest revenue.

A debit balance in the Allowance for Doubtful Accounts

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?

If the maker of a promissory note fails to pay the note on the due date,the note is said to be

One of the weaknesses of the direct write-off method is that it

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?

a)The aging of Torme Designs shown below.Calculate the amount of each periodicity range that is deemed to be uncollectible. b)If the Allowance for Doubtful Accounts has a credit balance of $1,135.00,record the adjusting entry for the bad debt expense for the year.

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

An alternative name for Bad Debt Expense is

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?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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 8: Receivables

Allowance for Doubtful Accounts is a liability account.

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

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

A 60-day,9% note for $10,000,dated May 1,is received from a customer on account.The maturity value of the note is

On the basis of the following data related to assets due within one year for Webb Co. ,prepare a partial balance sheet in good form at December 31,2014. Show total current assets.

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

Receivables not currently collectible are reported in the investments section of the balance sheet.

If a promissory note is dishonored,the payee should still record interest revenue.

A debit balance in the Allowance for Doubtful Accounts

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?

If the maker of a promissory note fails to pay the note on the due date,the note is said to be

One of the weaknesses of the direct write-off method is that it

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?

a)The aging of Torme Designs shown below.Calculate the amount of each periodicity range that is deemed to be uncollectible. b)If the Allowance for Doubtful Accounts has a credit balance of $1,135.00,record the adjusting entry for the bad debt expense for the year.

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

An alternative name for Bad Debt Expense is

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?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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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