Question 1

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

Accepted Answer

A) $8,500 
B) $9,500 
C) $9,000 
D) Cannot be determined

Question 2

Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a

Accepted Answer

A) credit to Bad Debt Expense 
B) credit to Accounts Receivable 
C) debit to Allowance for Doubtful Accounts 
D) debit to Accounts Receivable

Question 3

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

Question 4

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

Accepted Answer

A) credit to Notes Receivable for $20,300 
B) debit to Interest Receivable for $300 
C) credit to Interest Revenue for $300 
D) debit to Notes Receivable for $20,000

Question 5

The following are the current assets of Barnes Co. as of December 31:  Prepare the current assets section of the balance sheet.

Accepted Answer

The answer of The following are the current assets of...

Question 6

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.​

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

Question 7

Match each description to the appropriate term (a-h).
-The time between the date a note is issued and the due date of the note
A)Face amount
B)Term
C)Interest
D)Maturity value
E)Dishonored note
F)Maker
G)Notes receivable
H)Interest rate

Accepted Answer

The answer of Match each description to the appropriate term...

Question 8

Which statement is not true?

Accepted Answer

A) Current assets are normally reported in order of their liquidity. 
B) Disclosures related to receivables are reported on the financial statement notes. 
C) Cash and cash equivalents are the first items reported under current assets. 
D) All receivables that are expected to be realized in cash beyond 265 days are reported in the non-current assets section.

Question 9

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

Accepted Answer

A) Cash will be debited 
B) Bad Debt Expense will be credited 
C) Allowance for Doubtful Accounts will be credited 
D) Accounts Receivable will be debited

Question 10

Notes or accounts receivable that result from sales transactions are often called

Accepted Answer

A) nontrade receivables 
B) trade receivables 
C) merchandise receivables 
D) sales receivables

Question 11

Match each description to the appropriate term (a-d). Each term may be used more than once.
-Offers two methods of estimating uncollectible accounts.
A)Direct write-off method
B)Aging of receivables method
C)Percent of sales method
D)Allowance method

Accepted Answer

The answer of Match each description to the appropriate term...

Question 12

Other receivables include nontrade receivables such as loans to company officers.

Accepted Answer

A) True 
 B)False

Question 13

On June 30 (the end of the period), Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

Accepted Answer

The answer of On June 30 (the end of the...

Question 14

Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to recognize the interest to be paid has what effect on the accounting equation?

Accepted Answer

The answer of Suppose that at the end of the...

Question 15

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?

Accepted Answer

A) direct write-off method 
B) percentage of sales method 
C) analysis of receivables method 
D) both percentage of sales and analysis of receivables methods

Question 16

The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each.(a)Bad Debt Expense
900
Accounts Receivable-Billings
900
(b)Allowance for Doubtful Accounts
900
Accounts Receivable-Grover
900

Accepted Answer

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

Question 17

When an account receivable that has been written off is subsequently collected, the account receivable must first be reinstated before recording the receipt of payment.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Match each description to the appropriate term (a-i).
-A contra asset that represents the amount of estimated uncollectible receivables
A)Accounts receivable turnover
B)Net realizable value
C)Accounts receivable
D)Aging report
E)Receivables
F)Direct write-off method
G)Allowance for doubtful accounts
H)Bad debt expense
I)Factoring

Accepted Answer

The answer of Match each description to the appropriate term...

Question 20

The following information was taken from the financial records of Sodigaz, Inc.  The number of days' sales in receivable for Year 2 is

Accepted Answer

A) 45.2 
B) 31.8 
C) 24.8 
D) 38.8

Exam 8: Receivables

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment) , and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a

The term "receivables" includes all

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

The following are the current assets of Barnes Co. as of December 31: Prepare the current assets section of the balance sheet.

Match each description to the appropriate term (a-h). -The time between the date a note is issued and the due date of the note A)Face amount B)Term C)Interest D)Maturity value E)Dishonored note F)Maker G)Notes receivable H)Interest rate

Which statement is not true?

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

Notes or accounts receivable that result from sales transactions are often called

Match each description to the appropriate term (a-d). Each term may be used more than once. -Offers two methods of estimating uncollectible accounts. A)Direct write-off method B)Aging of receivables method C)Percent of sales method D)Allowance method

Other receivables include nontrade receivables such as loans to company officers.

On June 30 (the end of the period), Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to recognize the interest to be paid has what effect on the accounting equation?

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?

The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each.(a)Bad Debt Expense 900 Accounts Receivable-Billings 900 (b)Allowance for Doubtful Accounts 900 Accounts Receivable-Grover 900

When an account receivable that has been written off is subsequently collected, the account receivable must first be reinstated before recording the receipt of payment.

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 information was taken from the financial records of Sodigaz, Inc. The number of days' sales in receivable for Year 2 is