Question 1

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 ​

Accepted Answer

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 $1,300E) B) and D)
F) A) and B)

Question 2

Given the following information,compute accounts receivable turnover:

Accepted Answer

A)   6.75
B)   7.50
C)   6.13
D)   6.82E) B) and C)
F) A) and B)

Question 3

Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:
​
Required:

Accepted Answer

The answer of Morry Company wrote off the following accounts...

Question 4

At the beginning of the year,the balance in Allowance for Doubtful Accounts is a credit of $760.During the year,$120 of previously written off accounts are reinstated and accounts totaling $740 are written off as uncollectible.The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be ​

Accepted Answer

A)   $760
B)   $120
C)   $140
D)   $740E) All of the above
F) A) and C)

Question 5

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense? ​

Accepted Answer

A)   debit Bad Debt Expense,$14,000; credit Allowance for Doubtful Accounts,$14,000
B)   debit Allowance for Doubtful Accounts,$14,000; credit Bad Debt Expense,$14,000
C)   debit Allowance for Doubtful Accounts,$11,800; credit Bad Debt Expense,$11,800
D)   debit Bad Debt Expense,$11,800; credit Allowance for Doubtful Accounts,$11,800E) C) and D)
F) A) and D)

Question 6

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a debit balance of $2,000.The Accounts Receivable balance is analyzed by aging the accounts and,the amount estimated to be uncollectible is $15,000.The amount to be recorded in the adjusting entry for the bad debt expense is $15,000.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a credit balance of $5,000.The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $50,000.The amount to be recorded in the adjusting entry for the Bad Debt Expense is $45,000.

Accepted Answer

A) True 
 B)False

Question 9

Selling receivables is called​

Accepted Answer

A)   ​factoring
B)   ​sales revenue
C)   ​a factor
D)   ​sold receivablesE) B) and C)
F) A) and D)

Question 10

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) ,and bad debt expense is estimated at 4% of credit sales.If net credit sales are $800,000,the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Accepted Answer

A)   $29,500
B)   $34,500
C)   $32,000
D)   cannot be determinedE) B) and C)
F) C) and D)

Question 11

At the end of the current year,Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000.An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.
​
Determine (a)the amount of the adjusting entry for bad debt expense; (b)the adjusted balances of Accounts Receivable,Allowance for 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,Accounts...

Question 12

An alternative name for Bad Debt Expense is

Accepted Answer

A)   collection expense
B)   credit loss expense
C)   uncollectible accounts expense
D)   deadbeat expenseE) None of the above
F) C) and D)

Question 13

Based on the following data and using a 365-day year,compute (a)the accounts receivable turnover and (b)the number of days' sales in receivables for year 2 to 2 decimal places.The industry average turnover is 20 times during the year,and the number of days' sales in receivables averages 25.(c)Comment on this situation.

Accepted Answer

The answer of Based on the following data and using...

Question 14

Other than Accounts Receivable and Notes Receivable,name other receivables that might be included in the general ledger.

Accepted Answer

Interest Receivable,...

Question 15

Two methods of accounting for uncollectible accounts are the

Accepted Answer

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 methodE) All of the above
F) C) and D)

Question 16

Abbott Company uses the allowance method of accounting for uncollectible accounts.Abbott estimates that 3% of credit sales will be uncollectible.On January 1,the Allowance for Doubtful Accounts had a credit balance of $2,400.During the year,Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.After the adjusting entry,the December 31 balance in Bad Debt Expense will be

Accepted Answer

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

Question 17

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? ​

Accepted Answer

A)   Bad Debt Expense 17,000Allowance for Doubtful Accounts 17,000
B)   Bad Debt Expense 19,500Allowance for Doubtful Accounts 19,500
C)   Bad Debt Expense 22,000Allowance for Doubtful Accounts 22,000
D)   Bad Debt Expense 65,000Allowance for Doubtful Accounts 65,000E) A) and D)
F) A) and B)

Question 18

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible.Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Accepted Answer

Under the direct write-off method,Bad De...

Question 19

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Accepted Answer

A) True 
 B)False

Question 20

Lone Star Company received a 90-day,6% note for $80,000,dated March 12 from a customer on account.(Assume a 360-day year when calculating interest.)

Accepted Answer

The answer of Lone Star Company received a 90-day,6% note...

Exam 8: Receivables

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible.Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Correct Answer
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Under the direct write-off method,Bad De...
View Answer

Correct Answer
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Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense?

Correct Answer
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Correct Answer
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Given the following information,compute accounts receivable turnover:

Correct Answer
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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

Correct Answer
verified

Correct Answer
verified

Two methods of accounting for uncollectible accounts are the

Correct Answer
verified

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) ,and bad debt expense is estimated at 4% of credit sales.If net credit sales are $800,000,the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Correct Answer
verified

Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Required:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A debit balance in the Allowance for Doubtful Accounts

Correct Answer
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Correct Answer
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Correct Answer
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Lone Star Company received a 90-day,6% note for $80,000,dated March 12 from a customer on account.(Assume a 360-day year when calculating interest.)

Correct Answer
verified

Other than Accounts Receivable and Notes Receivable,name other receivables that might be included in the general ledger.

Correct Answer
verified
Interest Receivable,...
View Answer

An alternative name for Bad Debt Expense is

Correct Answer
verified

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Correct Answer
verified

Selling receivables is called

Correct Answer
verified

Exam 8: Receivables

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible.Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Correct AnswerverifiedUnder the direct write-off method,Bad De...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense? ​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Given the following information,compute accounts receivable turnover:

Correct AnswerverifiedShow Answer

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 ​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Two methods of accounting for uncollectible accounts are the

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) ,and bad debt expense is estimated at 4% of credit sales.If net credit sales are $800,000,the amount of the adjusting entry to record the estimate of the uncollectible accounts is

Correct AnswerverifiedShow Answer

Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: ​ Required:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A debit balance in the Allowance for Doubtful Accounts

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Lone Star Company received a 90-day,6% note for $80,000,dated March 12 from a customer on account.(Assume a 360-day year when calculating interest.)

Correct AnswerverifiedShow Answer

Other than Accounts Receivable and Notes Receivable,name other receivables that might be included in the general ledger.

Correct AnswerverifiedInterest Receivable,...View AnswerShow Answer

An alternative name for Bad Debt Expense is

Correct AnswerverifiedShow Answer

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Correct AnswerverifiedShow Answer

Selling receivables is called​

Correct AnswerverifiedShow Answer

Correct Answer
verified
Under the direct write-off method,Bad De...
View Answer

Correct Answer
verified

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Required:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Interest Receivable,...
View Answer

Correct Answer
verified

Correct Answer
verified

Selling receivables is called

Correct Answer
verified