Using the aging$-$of$-$accounts$-$receivable method to estimate uncollectible receivables, Records Management Corp. estimates that $$8,000$ of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a debit

$2$ points

balance of $$2,000.$ Bad debt expense to be reported on the income statement is:

A$)$ $$10,000$

B$)$ $$8,000$

C$)$ $$6,000$

D$)$ $$2,000$

Smart$-$T Corporation uses the aging$-$of$-$accounts$-$receivable method to estimate uncollectible receivables. At year end Smart$-$T estimates that $$4,750$ of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts

$2$ points

has a credit balance of $$200.$ Bad debt expense to be reported on the income statement is:

A$)$ $$4,750$

B$)$ $$4,950$

C$)$ $$4,550$

D$)$ $$200$

Net accounts receivable is calculated as:

$2$ points

A$)$ sales less sales returns and allowances

B$)$ accounts receivable less bad debt expense

C$)$ accounts receivable less allowance for uncollectible accounts

D$)$ accounts receivable plus allowance for uncollectible accounts

On December $31,2020,$ James Company has an accounts receivable balance of $$324,000$ before any year$-$end adjustments. The Allowance for Doubtful Accounts has a $$1,100$ credit balance. The company prepares the following aging schedule for accounts receivable:

$\backslash$table$[[$Total Balance,$1-30$ days,$\backslash$table$[[\backslash$table$[[31-60],[$days$]]]],\backslash$table$[[\backslash$table$[[61-90],[$days$]]]],$over $90$ days,$2$ points$],[$$$324,000,$$$157,000,$$$89,000,$$$51,000,$$$27,000,],[$Percent uncollectible,$1\%,2\%,4\%,21\%,]]$

What is the Uncollectible$-$Account Expense at December $31,2020?$

A$)$ $$1,570$

B$)$ $$9,960$

C$)$ $$11,060$

D$)$ $$12,160$

$5.$ The balance in Accounts Receivable was $$700,000$ at the beginning of the year and $$780,000$ at the end of the year. Credit sales for the year totaled $$4,110,000.$ During the year $$430,000$ in customer accounts were written off. How much cash was collected from customers during the period?

A$)$ $$3,600,000$

B$)$ $$4,030,000$

C$)$ $$4,460,000$

D$)$ $$4,620,000$

$6.$ The expense of not collecting from customers is called:

$2$ points

A$)$ allowance for uncollectibles

B$)$ net receivables

C$)$ net realizable value

D$)$ bad debt expense

$7.$ In a bank reconciliation, there might be items which have been recorded by the company that have not yet been recorded by the bank. Examples of such items would include:

$2$ points

A$)$ NSF cheques

B$)$ deposits in transit

C$)$ bank collections

D$)$ bank service charges

$8.$ If the balance on the bank statement does not equal the balance in the company's Cash account, then you can conclude that:

$2$ points

A$)$ the company accountant made an error in the accounting process

B$)$ the bank made an error

C$)$ both the company accountant and the bank made errors

n$)$ there are some reconciling items that, when identified, will explain the differences