1. When an accounts receivable becomes uncollectible and must be written off:

A. Allowance for Doubtful Accounts will be credited.

B. Allowance for Doubtful Accounts will be debited

C. Bad Debt Expense will be debited.

D. Accounts Receivable will be debited

2. An aging of a companys accounts receivable at year end indicates $ 10,000 is estimated to

be uncollectible. There is a $ 2,000 debit balance ( before adjustment ) in its Allowance for Doubtful Accounts. The adjusting entry to record estimated uncollectible accounts receivable at year end will require a(n):

A. $ 8,000 debit to Bad Debt Expense.

B. $ 8,000 credit to Allowance for Doubtful Accounts.

C. $ 12,000 debit to Bad Debt Expense.

D. $ 12,000 credit to Accounts Receivable.

3. Singh Company lends Newell Company $ 40,000 on January 1 and accepts a three-month,

5% promissory note in exchange. Singh Company prepares financial statements on January 31. What adjusting entry should Singh Company make before preparing the financial statements?

A. Note Receivable-Newell Company............................................. 40,000

Cash.......................................................................... 40,000

B. Interest Receivable.................................................................... 167

Interest Revenue........................................................ 167

C. Cash.......................................................................................... 167

Interest Revenue........................................................ 167

D. Interest Receivable.................................................................... 500

Interest Revenue........................................................ 500

4. A company purchased land for $ 70,000 cash. They spent $7,000 demolishing an old

building on the land before construction of a new building could start. The cost of land would be recorded at:

A. $ 77,000.

B. $ 70,000.

C. $ 63,000.

D. $ 7,000.

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5. A company sells a long-lived asset which originally cost $ 150,000 for $ 50,000 on December 31,

2019. The accumulated depreciation account had a balance of $ 60,000 at the time of the sale after

the current year's depreciation of $ 15,000 had been recorded. The company should recognize a:

A. $ 100,000 loss on disposal.

B. $ 40,000 gain on disposal.

C. $ 40,000 loss on disposal.

D. $ 25,000 loss on disposal.