1. (Points: 5) An aging of a company's accounts receivable indicates that $2,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $200 credit balance, the adjustment to record bad debts for the period will require a 1. debit to Bad Debts Expense for $1,800. 2. debit to Bad Debt Expense for $2,200. 3. credit to Allowance for Doubtful Accounts for $3,000. 4. debit to Bad Debts Expense for $2,000. Save Answer 2. (Points: 5) At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $640. During the year, $350 of previously written-off accounts were reinstated and accounts totaling $410 are written-off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be 1. $580 2. $410 3. $760 4. $700 Save Answer 3. (Points: 5) Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited 1. at the end of each accounting period. 2. when an account is determined to be worthless. 3. when a credit sale is past due. 4. whenever a pre-determined amount of credit sales have been made. Save Answer 4. (Points: 5) The term "receivables" includes all 1. cash to be paid to debtors. 2. money claims against other entities. 3. merchandise to be collected from individuals or companies. 4. cash to be paid to creditors. Save Answer 5. (Points: 5) When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, the entry to reinstate a previously written off accounts under the allowance method would include: 1. A debit to Bad Debt Expense 2. A credit to Allowance for Doubtful Accounts 3. A debit to Allowance for Doubtful Accounts 4. A credit to Bad Debt Expense Save Answer 6. (Points: 5) On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the 1. total of the accounts receivables written-off during the year 2. sum of all accounts that are past due. 3. total estimated uncollectible accounts as of the end of the year 4. Uncollectible accounts expense for the year Save Answer 7. (Points: 5) 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? 1. Accounts Receivable 2. Uncollectible Accounts Expense 3. Allowance for Doubtful Accounts 4. Interest Expense Save Answer 8. (Points: 5) A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is 1. $200 2. $9,800 3. $10,000 4. $10,200 Save Answer 9. (Points: 5) If the maker of a promissory note fails to pay the note on the due date, the note is said to be 1. discounted 2. displaced 3. disallowed 4. dishonored Save Answer 10. (Points: 5) Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 4% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is 1. $24,000 2. $24,500 3. $23,500 4. none of the above Save Answer 11. (Points: 5) Allowance for Doubtful Accounts has a credit balance of $1,400 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? 1. debit Allowance for Doubtful Accounts, $16,500; credit Uncollectible Accounts Expense, $16,500 2. debit Allowance for Doubtful Accounts, $19,300; credit Uncollectible Accounts Expense, $19,300 3. debit Uncollectible Accounts Expense, $19,300; credit Allowance for Doubtful Accounts, $19,300 4. debit Uncollectible Accounts Expense, $16,500; credit Allowance for Doubtful Accounts, $16,500 Save Answer 12. (Points: 5) An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a 1. debit to Bad Debts Expense for $2,800. 2. debit to Bad Debts Expense for $4,000. 3. credit to Allowance for Doubtful Accounts for $5,000. 4. debit to Bad Debt Expense for $5,200. Save Answer 13. (Points: 5) Interest on a note can be calculated without knowledge of the 1. principal amount 2. rate of interest 3. note's maturity date 4. notes duration Save Answer 14. (Points: 5) After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable? 1. $430,000 2. $460,000 3. $30,000 4. $490,000 Save Answer 15. (Points: 5) Accounts Receivable Turnover measures 1. the number of days outstanding 2. how frequently during the year the accounts receivable are converted to cash 3. the fair market value of accounts receivable 4. the efficiency of the accounts payable function Save Answer 16. (Points: 5) Allowance for Doubtful Accounts has a credit balance of $1,200 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $13,900. Which of the following entries records the proper provision for doubtful accounts? 1. debit Allowance for Doubtful Accounts, $12,700; credit Uncollectible Accounts Expense, $12,700 2. debit Uncollectible Accounts Expense, $12,700; credit Allowance for Doubtful Accounts, $12,700 3. debit Uncollectible Accounts Expense, $15,100; credit Allowance for Doubtful Accounts, $15,100 4. debit Allowance for Doubtful Accounts, $15,100; credit Uncollectible Accounts Expense, $15,100 Save Answer 17. (Points: 5) A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is 1. debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060 2. debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; Credit Interest Receivable, $120 3. debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; Credit Interest Revenue, $120 4. debit Cash, $6,120; credit Notes Receivable, $6,120 Save Answer 18. (Points: 5) Using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a 1. credit to Bad Debt Expense 2. debit to Allowance for Doubtful Accounts 3. debit to Accounts Receivable 4. credit to Accounts Receivable Save Answer 19. (Points: 5) Allowance for Doubtful Accounts has a debit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts? 1. debit Uncollectible Accounts Expense, $15,800; credit Allowance for Doubtful Accounts, $15,800 2. debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800 3. debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800 4. debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200 Save Answer 20. (Points: 5) The number of days' sales in receivables 1. is Net Credit Sales divided by Average Receivables 2. is not meaningful and therefore is not used 3. measures the number of times the receivables turn over each year 4. is an estimate of the length of time the receivables have been outstanding