23. The write-off of an uncollectible account of $100 would be recorded by using which of the following entries? a. Bad Debt Expense 100 Allowance for Bad Debts 100 100 b. Accounts Receivable Allowance for Bad Debts 100 100 C. Allowance for Bad Debts Bad Debt Expense 100 100 d. Allowance for Bad Debts Accounts Receivable 100 100 e. Bad Debt Expense Accounts Receivable 100 24. XYZ Co, uses the aging method of determining uncollectible accounts. It was determined that $1,400 of accounts would not be collected. If the balance in the allowance account were $300 (debit balance), the amount of bad debt expense would be: a. $1,700 b. $1,400 c. $1,100 d. $300 e none of the above Duckburger Joint, Inc. purchased an abandoned duck farm and a three-story duck residence. They removed the duck residence and constructed a restaurant with an adjoining parking lot. In addition, they purchased a new automatic duckburger machine. The following information is available for questions 25 to 28: Purchase of land cost Purchase of duck residence cost Delinquent real estate taxes Blueprints for restaurant Insurance during construction Blacktop for parking lot Cost to remove duck residence Fence surrounding restaurant Building construction costs Attorney's fee for land purchase Plastic plants in front of restaurant Cost of duckburger machine Machine freight charges Machine installation charges Cement foundation for machine Estimated scrap value $ 40,000 10,000 5,000 5,000 1,000 5,000 2,000 2,000 100,000 1,000 1,000 25,000 2,500 4,700 1,250 2,500 25. The cost of the land would be: a. $58,000 b. $56,000 c. $46,000 d. $45,000 e. none of the above 26. d. $100,000 e. none of the above The cost of the restaurant would be: a. $108,000 b. $106,000 c. $105,000 The cost of the land improvements would be: a. $10,000 b. $8,000 C. $7,000 27. d. $5,000 e. none of the above 28. The cost of the duckburger machine would be: a. $33,450 b. $32,200 C. $30,950 d. $25,000 e none of the above 29. a. Which of the following situations would you consider to be a weakness in internal control? The bank statement is reconciled monthly by an internal auditor. b. Authorized check signers include only the treasurer and assistant treasurer. Blank checks are not stored in a safe, but are kept in a locked, fireproof cabinet in the treasurer's office. d. Each day two mail clerks open all mail receipts. The company accountant makes the daily bank deposit and then records the day's receipts. c. e. 30. A check is written to replenish a $100 petty cash fund when the fund contains "petty cash receipts" of $93 and $3 in coins. In recording the replenishment: a. petty cash should be debited for $93. b. cash should be credited for $93. petty cash should be credited for $3. d. cash over and short should be credited for $4. cash over and short should be debited for $4. C. e
