1. The bad-debt method that uses the accounts receivable aging report is _______________.

a. the bad-debt expense method

b. the direct write-off method

c. the percentage-of-receivables method

d. the percentage-of-sales method

2. When it is determined that too much money has been set aside for uncollectible accounts, we will _______________.

a. debit accounts receivable

b. debit reserve for uncollectible accounts

c. credit cash

d. credit reserve for uncollectible accounts

3. A customer whose account was previously written off unexpectedly pays us. If we are using the allowance method we would _______________.

a. debit cash and credit bad-debt expense

b. debit accounts receivable and credit allowance for uncollectible accounts AND debit cash and credit accounts receivable

c. debit bad-debt expense and credit cash

d. debit reserve for uncollectible accounts and credit cash

4. When a retailer accepts a bank card (VISA or MasterCard), they will make what entry for the days receipts?

a. debit accounts receivable and credit sales

b. debit cash and debit credit card expense; credit sales

c. debit accounts receivable; credit sales, and credit credit card expense

d. debit cash and credit sales

5. The company prepares, but does not yet pay, its first payroll of the new year. Salaries total $10,000 and 7.65% is withheld from paychecks for FICA tax. Ignore all other payroll deductions. The journal entries will be _______________.

a. debit wage expense $10,000 and credit wages payable $10,000; debit payroll tax expense for $765 and credit FICA tax payable $765

b. debit wage expense $10,000; credit wages payable $8,470 and FICA tax payable $1,530

c. debit wage expense $10,000 and credit wages payable 10,000; debit payroll tax expense for $1,530 and credit FICA tax payable $1,530

d. debit wage expense $10,000 and debit payroll tax expense $765; credit wages payable $9,235 and credit FICA tax payable $1,530