1. What accounting principle supports the allowance method for reporting uncollectible accounts?

A. Historical cost

B. Matching

C. Periodicity of income

D. Conservatism

2. Thompson Industries determines its provision for uncollectible accounts by applying an estimated loss percentage of 1 percent to net credit sales. In 20X1, net credit sales were $5,500,000. Prior to the adjusting entry, Allowance for Doubtful Accounts contained a credit balance of $3,000. How much will be charged to Uncollectible Accounts Expense in 20X1?

A. $5,800

B. $58,000

C. $52,000

D. $53,000

3. On March 31, 20X1, Carter Company wrote off the $500 account of James Walker as uncollectible. The company uses the direct charge-off method. What account is debited and what account is credited to record the write-off?

A. debit Uncollectible Accounts Recovered; credit Accounts Receivable/James Walker

B. debit Allowance for Uncollectible Accounts; credit Accounts Receivable/James Walker

C. debit Uncollectible Accounts Expense; credit Accounts Receivable/James Walker

D. debit Accounts Receivable/James Walker; credit Uncollectible Accounts Expense

4. How much cash will the borrower receive for a $15,000, 75-day, noninterest-bearing note discounted at 6 percent?

A. $14,812.5

B. $15,187.5

C. $15,200

D. $15,000

5. What is the interest due on a note for $15,000 at 8 percent for 60 days?

A. $200

B. $300

C. $200

D. $225

6. The total to be received when a note receivable is due is known as the:

A. face value

B. principal

C. maturity value

D. interest