1) When goods are shipped FOB destination: A) revenue is recognized when the goods leave the shipping dock. B) revenue is recognized when the invoice is mailed to the customer C) revenue is recognized only after cash payment is received. D) revenue is recognized when the goods are received by the customer. 2) Leno Company sells goods to the Fallon Company for $11,000. It offers credit terms of 3/10, 1/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of: A) $11,330. B) $330. C) $10,670. D) $11,000 3) On December 1, Macy Company sold merchandise with a selling price of $3,000 on account to Mrs. Jorgensen, with terms 1/10, 1/30. Using the gross method and ignoring cost of goods sold, what journal entry did Macy Company prepare on December 12 Macy expects no sales returns A) Debit Cash for $3,000 and credit Accounts Receivable for $3,000. B) Debit Accounts Receivable for $2,970 and credit Cash for $2,970. c) Debit Accounts Receivable for $2,970 and credit Sales Revenue for $2.970. D) Debit Accounts Receivable for $3,000 and and credit Sales Revenue for $3,000. 4) The net realizable value of accounts receivable is the difference between gross accounts receivable and: A) Sales Discounts. B) Sales Returns and Allowances. c) Uncollectible Account Expense. D) Allowance for Uncollectible Accounts 5) The entry to write off an Account Receivable under the allowance method: A) reduces total assets and increases net income. B) reduces net income and total assets C) has no effect on total assets and net income D) increases net income and total assets. 6) Under the allowance method, the entry to write off a $11,600 uncollectible account includes a: A) debit to Uncollectible Account Expense for $11,600 and credit to Allowance for Uncollectible Accounts for $11,600. B) debit to Accounts Receivable for $11,600 and credit to Uncollectible-Account Expense for $11,600. C) debit to Accounts Receivable for $11,600 and credit to Allowance for Uncollectible Accounts for $11,600. D) debit to Allowance for Uncollectible Accounts for $11,600 and credit to Accounts Receivable for $11,600. 7) A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Days Outstanding 1-30 days 31-60 days 61-90 days Over 90 days Accounts Est. Percent Receivable Uncollectible $65,000 3% $45,000 $21,000 109 $8.000 50% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1,300. Under the aging-of-receivables method, the Uncollectible-Account Expense at year-end A) $1.950. B) $9,000. C) $10,300. D) $11,600 B) Jumpin Corporation uses the percent of sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,030,000, and management estimates 5% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,300. The amount of Uncollectible-Account Expense reported on the income statement will be: A) $1,300. B) $100,200. C) 5101,500 D) $102,800. 3 017 9) Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000 (after all write-offs are recorded). After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be: A) $18,000. B) $18,540. C) $42,300. D) $60,300 10) The balance in Accounts Receivable was $650,000 at the beginning of the year and $760,000 at the end of the year. Credit sales for the year totaled $4,130,000. During the year, $410,000 in customer accounts were written off. How much cash was collected from customers during the period? A) $3,610,000 B) $4,020,000 C) $4,430,000 D) $4,650,000 11) Following Generally Accepted Accounting Principles, which method of estimating uncollectible accounts is NOT acceptable? A) allowance method B) percent-of-sales method C) aging-of-receivables method D) direct write-off method 12) On December 31 of the current year, Jerome Company has an accounts receivable balance of 5329,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $1.100 credit balance. The company prepares the following aging schedule for accounts receivable: Total Balance $329,000 Percent uncollectible 1-30 days 31.60 days 61.90 days over 90 days $160,000 $90,000 $51,000 $28,000 1% 2% 3% 20% What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments? A) $1.100 B) $9.430 C) $10,530 D) $11,630