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A. INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column. Answers 1. Allowance for
A. INSTRUCTIONS: Answer the following questions or complete the statements by writing the | ||||||||||
appropriate words or amounts in the Answers column. | ||||||||||
Answers | ||||||||||
1. Allowance for Doubtful Accounts has a credit balance of $1,000 at the | ||||||||||
end of the year, before adjustments. Sales for the year amounted to | ||||||||||
$950,000, and sales returns and allowances amounted to $50,000. If | ||||||||||
uncollectible accounts expense is estimated at 1% of net sales, the | ||||||||||
amount of the appropriate adjusting entry will be | $ | 1 | ||||||||
2. If, instead of a percentage of net sales, the adjusting entry in Question 1 | ||||||||||
is based on an analysis of receivables that indicates doubtful accounts | ||||||||||
of $9,500, the amount of the adjustment will be | $ | 2 | ||||||||
3. Allowance for Doubtful Accounts has a debit balance of $700 at the end | ||||||||||
of the year, before adjustments and an analysis of receivables indicates | ||||||||||
doubtful accounts of $9,000, the amount of the appropriate adjusting | ||||||||||
entry will be | $ | 3 | ||||||||
4. The maturity value of a $70,000, 90-day, 6% note receivable is | $ | 4 | ||||||||
5. In writing off an uncollectible account by the direct write-off method, | ||||||||||
the account debited is | 5 | |||||||||
6. At the end of the fiscal year, after the accounts are closed, Accounts | ||||||||||
Receivable has a balance of $8,000,000, and Allowance for Doubtful | ||||||||||
Accounts has a balance of $60,000. What is the expected net realizable | ||||||||||
value of the receivables? | $ | 6 | ||||||||
7. In which subsection of the balance sheet would receivables that are | ||||||||||
expected to be realized in cash within one year be reported? | 7 | |||||||||
8. Allowance for Doubtful Accounts is listed on the appropriate financial | ||||||||||
statement in the subsection titled | 8 | |||||||||
9. Notes receivable expected to be collected in 2 years are listed on the | ||||||||||
financial statements in the subsection titled | 9 | |||||||||
10.What is the due date of a 3 month note dated December 30, 2007? | 10 | |||||||||
11-12. Coral Company issued a 60-day, 8% note for $15,000, dated April 5, to Kandue Company on account | ||||||||||
11. Determine the due date of the note. | 11 | |||||||||
12. Determine the maturity value of the note. | $ | 12 | ||||||||
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