1. Credit sales during the year were $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts?

   		$6,300
   		$1,300
   		6,000
   		$10,700

2 points

QUESTION 6

1. The beginning balance in the Allowance for Uncollectible Accounts account is a $3,500 credit. After conducting an aging analysis, management has determined that $11,700 of accounts receivable will be uncollectible. What was the Uncollectible Accounts Expense for the year?

   		$8,200
   		$3,500
   		$11,700
   		$15,200

2 points

QUESTION 7

1. The allowance method generally is considered preferable to the direct write-off method because the allowance method:

   		relies on estimates which are always accurate and stable among years.
   		reflects the actual facts as they have taken place.
   		None of these.
   		recognizes the expense of a bad debt in the same period as the sale.
   		recognizes expense when a specific account is determined to be uncollectible.

2 points

QUESTION 8

1. ShadyTree Company issued a note receivable to a customer. The face value of the note was $12,000 at 4% interest for 5 months. How much interest revenue should ShadyTree recognize for the entire term of the note?

   		$40
   		$200
   		$480
   		$280

2 points

QUESTION 9

1. The year-end balance in accounts receivable is $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. An aging of receivables shows that $13,200 in receivables will be uncollectible.. What is the net realizable value of accounts receivable at year end?

   		$286,800
   		$285,500
   		$291,500
   		$282,100

2 points

QUESTION 10

1. Maribel Company had sales of $5,600,000 for the year. During the same year, their uncollectible accounts amounted to $780. If Maribel uses the direct write-off method of accounting for bad debts, which journal entry would be used to write off an account?

   		Debit: Accounts Receivable $780; Credit: Uncollectible Accounts Expense $780
   		Debit: Uncollectible Accounts Expense $780; Credit: Accounts Receivable $780
   		Debit: Accounts Receivable $780; Credit: Allowance for Uncollectible Accounts $780
   		Debit: Allowance for Uncollectible Accounts $780; Credit: Accounts Receivable $780

2 points

QUESTION 11

1. Honeycomb Company issued a note receivable to a customer on October 1. The face value of the note was $20,000 at 5% interest for 7 months. What is the accrued interest journal entry for Honeycomb assuming their fiscal year is December 31?

   		Debit: Interest Receivable $250; Credit: Interest Income $250
   		Debit: Interest Receivable $583.33; Credit: Interest Income $583.33
   		Debit: Interest Receivable $1,000; Credit: Interest Income $1,000
   		Debit: Interest Income $250; Credit: Interest Receivable $250

2 points

QUESTION 12

1. Credit sales during the year were $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense?

   		The Uncollectible Accounts Expense should be $8,500.
   		The Uncollectible Accounts Expense should be $6,300.
   		The Uncollectible Accounts Expense should be $6,000.
   		The Uncollectible Accounts Expense should be $8,200.
   		None of these