Accounting(the first set saved)

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 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

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 b. Bad Debt Expense 19,500 Allowance for Doubtful Accounts 19,500 c. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22,000 d. Bad Debt Expense 65,000 Allowance for Doubtful Accounts 65,000

A

The operating expense recorded from uncollectible receivables can be called all of the following except a. accounts receivable b. bad debt expense c. doubtful accounts expense d. uncollectible accounts expense

A

The term "receivables" includes all 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

To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a a. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts b. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts c. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable d. debit to Loss on Credit Sales and a credit to Accounts Receivable

A

Two methods of accounting for uncollectible accounts are the a. direct write-off method and the allowance method b. allowance method and the accrual method c. allowance method and the net realizable method d. direct write-off method and the accrual method

A

What is the type of account and normal balance of Allowance for Doubtful Accounts? a. contra asset, credit b. asset, debit c. asset, credit d. contra asset, debit

A

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? a. $51,000 b. $289,000 c. $340,000 d. $391,000

B

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 a. debit to Allowance for Doubtful Accounts for $3,200 b. debit to Bad Debt Expense for $3,200 c. debit to Allowance for Doubtful Accounts for $4,000 d. credit to Allowance for Doubtful Accounts for $4,000

B

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? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense

B

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? a. Uncollectible Accounts Expense b. Allowance for Doubtful Accounts c. Accounts Receivable d. Interest Expense

B

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? a. Bad Debt Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense

B

Indications that an account may be uncollectible include all of the following except a. the customer closes its business b. the customer is making small but regular payments c. the customer files for bankruptcy d. the customer cannot be located

B

The direct write-off method of accounting for uncollectible accounts a. emphasizes balance sheet relationships b. is often used by small companies and companies with few receivables c. emphasizes cash realizable value d. emphasizes the matching of expenses with revenues

B

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a a. debit to Bad Debt Expense for $8,600 b. debit to Bad Debt Expense for $7,900 c. debit to Bad Debt Expense for $7,200 d. credit to Allowance for Doubtful Accounts for $700

C

An alternative name for Bad Debt Expense is a. collection expense b. credit loss expense c. uncollectible accounts expense d. deadbeat expense

C

On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is equal to the a. uncollectible accounts expense for the year b. total of the accounts receivable written off during the year c. total estimated uncollectible accounts as of the end of the year d. sum of all accounts that are past due

C

When does an account become uncollectible? a. when accounts receivable is converted into notes receivable b. when a discount is available on notes receivable c. there is no general rule for when an account becomes uncollectible d. at the end of the fiscal year

C

You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to a. debit Bad Debt Expense and credit Allowance for Doubtful Accounts b. debit Bad Debt Expense and credit Accounts Receivable c. debit Allowance for Doubtful Accounts and credit Accounts Receivable d. debit Allowance for Doubtful Accounts and credit Bad Debt Expense

C

A debit balance in the Allowance for Doubtful Accounts 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

D

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense? a. debit Allowance for Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600 b. debit Allowance for Doubtful Accounts, $21,800; credit Bad Debt Expense, $21,800 c. debit Bad Debt Expense, $21,800; credit Allowance for Doubtful Accounts, $21,800 d. debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600

D

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible? a. Uncollectible Accounts Receivable b. Accounts Receivable c. Allowance for Doubtful Accounts d. Bad Debt Expense

D

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 uncollectible. The entry to write off this account would be which of the following? a. debit Allowance for Doubtful Accounts; credit Accounts Receivable b. debit Sales; credit Accounts Receivable c. debit Bad Debt Expense; credit Allowance for Doubtful Accounts d. debit Bad Debt Expense; credit Accounts Receivable

D

Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts a. liabilities decrease b. net income is unchanged c. total assets are unchanged d. total assets decrease

D

Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited a. at the end of each accounting period b. when a credit sale is past due c. whenever a predetermined amount of credit sales have been made d. when an account is determined to be worthless

D

Which statement is not true? 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.

D