Question 1

Which of the following receivables would not be classified as an "other receivable"?

Accepted Answer

A)  Advance to an employee 
B)  Interest receivable 
C)  Refundable income tax 
D)  Notes receivable 
A)  Advance to an employee 
B)  Interest receivable 
C)  Refundable income tax 
D)  Notes receivable

Question 2

When using the allowance method to estimate uncollectible accounts receivable based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $120. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:

Accepted Answer

A)  $120 
B)  $790 
C)  $670 
D)  $910 
A)  $120 
B)  $790 
C)  $670 
D)  $910

Question 3

Journalize the following transactions using the allowance method of accounting for uncollectible receivables.
June 10 Received $1,100 from Jim Dobbs and wrote off the remainder owed of $4,000.
Oct. 11 Reinstated the account of Jim Dobbs and received $4,000 cash in full payment.

Accepted Answer

The answer of Journalize the following transactions using the allowance...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& b. $40,800 [$40,00

Question 6

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2010, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no Sales Returns or Sales Discounts during the year. After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be

Accepted Answer

A)  $1,200 
B)  $3,000 
C)  $3,600 
D)  $7,200 
A)  $1,200 
B)  $3,000 
C)  $3,600 
D)  $7,200

Question 7

At the end of the current year, Accounts Receivable has a balance of $850,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and net sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $35,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 8

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

Accepted Answer

A) True 
 B)False

Question 9

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,200 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 $3,800. 
B)  debit to Bad Debt Expense for $3,800. 
C)  debit to Allowance for Doubtful Accounts for $5,000. 
D)  credit to Allowance for Doubtful Accounts for $5,000. 
A)  debit to Allowance for Doubtful Accounts for $3,800. 
B)  debit to Bad Debt Expense for $3,800. 
C)  debit to Allowance for Doubtful Accounts for $5,000. 
D)  credit to Allowance for Doubtful Accounts for $5,000.

Question 10

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 11

Receivables are usually listed in order

Accepted Answer

A)  of the due date 
B)  of the size 
C)  alphabetically 
D)  of liquidity 
A)  of the due date 
B)  of the size 
C)  alphabetically 
D)  of liquidity

Question 12

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 13

The following are the current assets from Hanes Co. as of December 31, 2011:
 $\begin{array}{|l|l|}
\hline 42,000 & \text { Accounts Receivable } \
\hline 3,000 & \text { Allowance for Doubtful Accounts } \
\hline 79,000 & \text { Cash } \\hline 3,500 & \text { Interest Receivable } \
\hline 104,000 & \text { Merchandise Inventory } \
\hline 100,000 & \text { Notes Receivable } \
\hline
\end{array}$ Prepare the current asset section of the balance sheet.

Accepted Answer

Hanes Co.

Question 14

At the end of the current year, Accounts Receivable has a balance of $900,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and net sales for the year total $4,000,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 15

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 16

When companies sell their receivables to other companies, the transaction is called factoring.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:

Accepted Answer

A)  debit Allowance for Doubtful Accounts; credit Accounts Receivable 
B)  debit Sales Returns and Allowance, credit Accounts Receivable 
C)  debit Bad Debt Expense; credit Allowance for Doubtful Accounts 
D)  debit Bad Debt Expense; credit Accounts Receivable 
A)  debit Allowance for Doubtful Accounts; credit Accounts Receivable 
B)  debit Sales Returns and Allowance, credit Accounts Receivable 
C)  debit Bad Debt Expense; credit Allowance for Doubtful Accounts 
D)  debit Bad Debt Expense; credit Accounts Receivable

Question 19

The term "receivables" includes all

Accepted Answer

A)  money claims against other entities. 
B)  merchandise to be collected from individuals or companies. 
C)  cash to be paid to creditors. 
D)  cash to be paid to debtors. 
A)  money claims against other entities. 
B)  merchandise to be collected from individuals or companies. 
C)  cash to be paid to creditors. 
D)  cash to be paid to debtors.

Question 20

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
June 10 Received $1,200 from Jim Dobbs and wrote off the remainder owed of $4,200.
Oct. 11 Reinstated the account of Jim Dobbs and received $4,200 cash in full payment.

Accepted Answer

The answer of Journalize the following transactions using the direct...

Which of the following receivables would not be classified as an "other receivable"?

Journalize the following transactions using the allowance method of accounting for uncollectible receivables. June 10 Received $1,100 from Jim Dobbs and wrote off the remainder owed of $4,000. Oct. 11 Reinstated the account of Jim Dobbs and received $4,000 cash in full payment.

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

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account.

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record the bad debt expense for the period will require a

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

Receivables are usually listed in order

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?

The following are the current assets from Hanes Co. as of December 31, 2011: 42,000 Accounts Receivable 3,000 Allowance for Doubtful Accounts 79,000 Cash 3,500 Interest Receivable 104,000 Merchandise Inventory 100,000 Notes Receivable Prepare the current asset section of the balance sheet.

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.

When companies sell their receivables to other companies, the transaction is called factoring.

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

The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:

The term "receivables" includes all

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables. June 10 Received $1,200 from Jim Dobbs and wrote off the remainder owed of $4,200. Oct. 11 Reinstated the account of Jim Dobbs and received $4,200 cash in full payment.

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

Filters

Exam 8: Receivables

Which of the following receivables would not be classified as an "other receivable"?

Journalize the following transactions using the allowance method of accounting for uncollectible receivables. June 10 Received $1,100 from Jim Dobbs and wrote off the remainder owed of $4,000. Oct. 11 Reinstated the account of Jim Dobbs and received $4,000 cash in full payment.

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

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account.

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record the bad debt expense for the period will require a

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

Receivables are usually listed in order

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?

The following are the current assets from Hanes Co. as of December 31, 2011: 42,000 Accounts Receivable 3,000 Allowance for Doubtful Accounts 79,000 Cash 3,500 Interest Receivable 104,000 Merchandise Inventory 100,000 Notes Receivable Prepare the current asset section of the balance sheet.

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.

When companies sell their receivables to other companies, the transaction is called factoring.

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

The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:

The term "receivables" includes all

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables. June 10 Received $1,200 from Jim Dobbs and wrote off the remainder owed of $4,200. Oct. 11 Reinstated the account of Jim Dobbs and received $4,200 cash in full payment.

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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