Read and analyze each item carefully then choose the best answer.

1. Statement |: The two methods of accounting for uncollectible accounts 2 points are {a} percentage of sales and{b) percentage of receivables. Statement II: The account Allowance for Doubtful Accounts is closed out at the end of the year. 0 a. Statement | is true (:11 b. Unly Statement |I istrue (:11 {2. Both statements are true (:11 :1. Both statements are false 2. Notes or accounts receivables that result from sales transactions are 2 points often called 0 a. sales receivables. O b. non-trade receivables. O c. trade receivables. Q d. merchandise receivables. 3. The term "receivables" refers to 2 points a. amounts due from individuals or companies. O b. merchandise to be collected from individuals or companies. O c. cash to be paid to creditors. O d. cash to be paid to debtors. 4. A cash discount is usually granted to all of the following except 2 points a. retail customers. b. retailers. O c. wholesalers. Od. All of these are granted discounts.5. Which one of the following is not a primary problem associated with 2 points accounts receivable? a. Depreciating accounts receivable b. Recognizing accounts receivable O c. Valuing accounts receivable Od. Disposing of accounts receivable 6. Trade accounts receivable are valued and reported on the balance 2 points sheet O a. in the investment section. b. at gross amounts less sales returns and allowances. c. at net realizable value. O d. only if they are not past due.F. The net amount expected to be received in cash from receivables is 2 points termed the O a. cash realizable value. (:31 b. cash-geed value. (:1 c. grass cash value. (:3 d. cash-equivalent value. 8. If a ccmpanv fails to record estimated bad debts expense 2 points 0 a. cash realizable value is understated. O b. expenses are understated. O c. revenues are understated. (:3 d. receivables are understated. 9. The existing balance in Allowance for Doubtful Accounts is considered 2 points in computing bad debts expense in the (:11 a. direct writeoff method. 0 b. percentage of receivables basis. (:11 c. percentage of sales basis. 0 d. percentage of receivables and percentage of sales basis. 10. When an account becomes uncollectible and must be written off 2 points 0 a. Allowance for Doubtful Accounts should be credited. O b. Accounts Receivable should be credited. O c. Bad Debts Expense should be credited. Q d. Sales should be debited. 11. A debit balance in the Allowance for Doubtful Accounts 2 points {:11 a. is the normal balance for that account. b. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. {:31 c. indicates that actual bad debt write-offs have been less than what was estimated. 0 :1. cannot occur if the percentage of sales method of estimating bad debts is used. 12. Under the direct write-off method of accounting for uncollectible 2 points accounts. Bad DebtsExpense is debited {:11 a. when a credit sale is past due. {:11 b. at the end of each accounting period. (:1 c. whenever a predetermined amount of credit sales have been made. {:11 :1. when an account is determined to be uncollectible. 13. The allowance method of accounting for uncollectible accounts is 2 points required if a. the company makes any credit sales. O b. bad debts are significant in amount. c. the company is a retailer. O d. the company charges interest on accounts receivable. 14. To record estimated uncollectible accounts using the allowance 2 points method, the adjusting entry would be a ) a. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. () b. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. c. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. O d. debit to Loss on Credit Sales and a credit to Accounts Receivable.15. A company has net credit sales of Php900,000 for the year and it 4 points estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of Php1,000 prior to adjustment, its balance after adjustment will be a credit of O a. Php18,000. b. Php19,000. ()c. Php17,980. d. Php17,000. 16. JK Company's account balances at December 31 for Accounts 4 points Receivable and Allowance for Doubtful Accounts were Php2,100,000 and Php105,000 (Cr.), respectively. An aging of accounts receivable indicated that Php192,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is a. Php192,000. b. Php87,000. c. Php297,000. O d. Php105,000.Use the following information for items 17-19. The December 31, 2020 4 points balance sheet of Sugar Company had Accounts Receivable of Php500,000 and a credit balance in Allowance for Doubtful Accounts of Php33,000. During 2021, the following transactions occurred: sales on account Php1,400,000; sales returns and allowances, Php50,000; collections from customers, Php1,150,000; accounts written off Php35,000; previously written off accounts of Php5,000 were collected. 17. If the company uses the percentage of sales basis to estimate bad debts expense and anticipates 2% of net sales to be uncollectible, what is the adjusting entry at December 31,2021? Your answer 18. If the company uses the percentage of receivables basis to estimate 4 points bad debts expense and determines that uncollectible accounts are expected to be 4% of accounts receivable, what is the adjusting entry at December 31, 2021? Your answer19. Which basis would produce a higher net income for 2021 and by how 4 points much? Your answer Use the following information for items 20-22 Kiley Company had a Php700 credit balance in Allowance for Doubtful Accounts at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts Php120,000 1% 1-30 days past due 12,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable Php155,000 Your answer20. Prepare the adjusting entry on December 31. 2O 21 to recognize bad 4 points debts expense. Your answer 21. Assume the same facts as above except that the Allowance for 4 points Doubtful Accounts account had a Php debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. Your answer 22. Assume that the company has a policy of providing for bad debts at 4 points the rate of 1% of sales. that sales for 2021 were Php}. and that Allowance for Doubtful Accounts had a Phpolcredit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts. Your