Singh Company had the following year-end unadjusted trial balance accounts:

Debit Credit

Accounts Receivable $150,000

Allowance for Doubtful Accounts $3,000

Credit Sales $980,000

Sales Returns and Allowances $80,000

20. The adjusting journal entry to record bad debts expense, assuming Singh uses the

percentage of sales approach and estimates uncollectible Accounts Receivable to be 1% of

net credit sales is:

1. Bad Debts Expense 9,000

Allowance for Doubtful Accounts 9,000

b. Bad Debts Expense 9,800

Allowance for Doubtful Accounts 9,800

c. Bad Debts Expense.. 9,000

Accounts Receivable. 9,000

d. Allowance for Doubtful Accounts. 9,000

Accounts Receivable. 9,000

e. Accounts Receivable.. 9,800

Allowance for Doubtful Accounts 9,800

21. The adjusting journal entry to record bad debts expense, assuming Singh ages its Accounts

Receivable and determines that $9,000 is estimated to be uncollectible is:

1. Bad Debts Expense. 9,000

Allowance for Doubtful Accounts. 9,000

b. Allowance for Doubtful Accounts 9,000

Bad Debts Expense. 9,000

c. Bad Debts Expense.. 6,000

Allowance for Doubtful Accounts.. 6,000

d. Allowance for Doubtful Accounts. 6,000

Bad Debts Expense. 6,000

e. Bad Debts Expense. 6,000

Accounts Receivable.. 6,000

22. Tangier Company had a January 1, 2022, balance in Allowance for Doubtful Accounts of $7,000 Cr. The following events required journal entries during 2022:

Apr. 15 Diyas account receivable of $5,700 was deemed uncollectible.

July 1 Nitosa paid the full amount of her previously written-off account receivable. The receivable of $2,300 had been written off in 2021.

Dec. 31 Bad debts expense was estimated to be 2.0 percent of net credit sales, which had amounted to $375,000.

What amount of Allowance for Doubtful Accounts should appear in the December 31, 2022 balance sheet?

a. $6,500

b. $11,100

c. $22,500

d. $17,900

e. None of the above.

23. The journal entry to record the sale (on account) of merchandise for resale of $1,500, plus HST of 13% (assuming a periodic inventory system) is:

a. Accounts Receivable 1,500

HST Recoverable 195

Sales.. 1,695

b. Accounts Receivable.. 1,695

HST Recoverable. 195

Sales 1,500

c. Accounts Receivable.. 1,500

HST Payable.. 195

Sales. 1.695

d. Accounts Receivable.. 1,695

HST Payable.. 195

Sales. 1,500

e. Accounts Receivable.. 1,695

Sales. 1,695

24. The journal entry to record the purchase (on account) of merchandise for resale of $10,000, plus HST of 13% (assuming a periodic inventory system) is:

a. Purchases 10,000

HST Payable.. 1,300

Accounts Payable. 11,300

b. Purchases 11,300

Accounts Payable.. 11,300

c. Purchases. 10,000

HST Recoverable. 1,300

Accounts Payable.. 11,300

d. Merchandise Inventory. 10,000

HST Recoverable 1,300

Accounts Payable 11,300

e. Purchases 11,300

HST Recoverable. 1,300

Accounts Payable.. 10,000

25. XYZ Company accepts from ABC Company a $12,000, 2-month, 5% note receivable in settlement of an account receivable. Interest is due at maturity of the note. What journal entry is made by XYZ upon receipt of the note?

a. Note Receivable - ABC Company 12,000

Interest Receivable 100

Account Receivable - ABC Company... 12,100

b. Note Receivable - ABC Company.... 12,000

Interest Receivable.. 600

Account Receivable - ABC Company.... 12,600

c. Note Receivable - ABC Company. 12,000

Account Receivable - ABC Company.... 12,000

d. Note Receivable - ABC Company.... 12,100

Account Receivable - ABC Company.... 12,000

Interest Revenue 100

e. Note Receivable - ABC Company.... 12,600

Account Receivable - ABC Company.. 12,000

Interest Revenue. 600