Question 1

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 2

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.E) None of the above
F) A) and C)

Question 3

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,$29,600E) A) and C)
F) All of the above

Question 4

Allowance for Doubtful Accounts is a liability account.

Accepted Answer

A) True 
 B)False

Question 5

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 $25,000E) B) and C)
F) A) and D)

Question 6

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 ExpenseE) None of the above
F) A) and D)

Question 7

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 ExpenseE) A) and B)
F) C) and D)

Question 8

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)  $9,100E) B) and C)
F) A) and B)

Question 9

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.E) B) and C)
F) A) and C)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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)  discountedE) A) and D)
F) None of the above

Question 12

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 estimatesE) B) and D)
F) A) and C)

Question 13

An alternative name for Bad Debt Expense is

Accepted Answer

A)  Collection Expense.
B)  Credit Loss Expense.
C)  Uncollectible Accounts Expense.
D)  Deadbeat Expense.E) All of the above
F) B) and C)

Question 14

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  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Dec 31 Uncollectibl...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 ExpenseE) None of the above
F) All of the above

Question 17

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 methodE) A) and B)
F) All of the above

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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,$16,800E) None of the above
F) B) and D)

Exam 8: Receivables

Correct Answer
verified

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.

Correct Answer
verified
Dec 31 Uncollectibl...
View Answer

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?

Correct Answer
verified

An alternative name for Bad Debt Expense is

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Allowance for Doubtful Accounts is a liability account.

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

A debit balance in the Allowance for Doubtful Accounts

Correct Answer
verified

Exam 8: Receivables

Correct AnswerverifiedShow Answer

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.

Correct Answerverified Dec 31 Uncollectibl...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

An alternative name for Bad Debt Expense is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts is a liability account.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A debit balance in the Allowance for Doubtful Accounts

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Dec 31 Uncollectibl...
View Answer

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