1. Our company wrote a check for $200 but mistakenly recorded the transaction in the general journal as $2,000. How would this error be included on the bank reconciliation?
| a deduction on the bank side |
| an addition on the book side |
| an addition on the bank side |
| a deduction on the book side |
Flag this Question2. Which account would we credit to open a new petty cash fund?
Flag this Question3. On July 1, 2017 our company issues a 9 month, 5% note for $12,000. What account and amount would wecreditwhen we record the adjusting entry on December 31, 2017?
Flag this Question4. Our company has decided to write off an uncollectible account of $3,000. What account would we credit to record bad debt expense if our company uses the direct write-off method for bad debts?
| allowance for doubtful accounts |
Flag this Question5. Where does allowance for doubtful accounts appear on our financial statements?
| on balance sheet as a current liability |
| on income statement as part of cost of goods sold |
| on balance sheet as a contra asset related to accounts receivable |
| on the statement of retained earnings as a deduction from net income |
Flag this Question6. At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. The company uses the percentage of sales method to estimate bad debt expense. The company estimates that 3% of net credit sales will be uncollectible for the year. Net credit sales for the year amounted to $1,000,000. What account and amount would we debit to record the adjusting entry for bad debt expense?
| bad debt expense, $30,000 |
| allowance for doubtful accounts, $30,000 |
| bad debt expense, $20,000 |
| accounts receivable, $20,000 |
Flag this Question7.7. Our company established a petty cash fund with a balance of $200. We have petty cash receipts for travel expenses that total $125. We have counted petty cash and found that we were $2 short. Which of the following would be included in the entry to replenish the fund?
| a credit to petty cash for $127 |
| a credit to travel expenses for $125 |
| a debit to cash over & short for $2 |
| a credit to cash for $125 |
Flag this Question8. At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable using the aging-of- receivables method, the company's management estimates that uncollectible accounts will be $30,000. What will be the amount of Bad Debts Expense reported on the income statement?
Flag this Question9. The five components to a system of internal controls include all of the following except:
Flag this Question10. Our company received a bank statement with a balance of $10,000. The reconciling items include outstanding checks that totaled $1,000 and a deposit in transit of $2,000. What is the adjusted bank balance after we complete the bank reconciliation?
