Question : 21) The period end adjusting entry for bad debt expense : 1232328

 

21) The period end adjusting entry for bad debt expense under the allowance method is:

A) Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.

B) not required.

C) Cash, debit; Accounts Receivable/customer name, credit.

D) Bad Debt Expense, debit; Accounts Receivable/customer name, credit.

22) The journal entry to write off a customer’s account under the allowance method is:

A) Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.

B) not required.

C) Allowance for Uncollectible Accounts, debit; Accounts Receivable/customer name, credit.

D) Bad Debt Expense, debit; Accounts Receivable/customer name, credit.

23) Under the allowance method, to record the receipt of cash after an account has previously being written off, you would first:

A) debit Cash and credit the customer’s account.

B) reinstate the customer’s account.

C) debit Allowance for Doubtful Accounts.

D) debit Bad Debt Expense.

24) A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,250 credit balance. If the company estimates 7% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?

A) $16,450

B) $23,700

C) $ 7,250

D) $ 9,200

25) A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has an $8,150 debit balance. If the company estimates 6% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?

A) $ 8,150

B) $27,170

C) $10,870

D) $19,020

26) A company has $286,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $2,280 credit balance. If the company estimates that $7,640 of accounts will be uncollectible based on an aging of Accounts Receivable, what will be the amount of the journal entry to record estimated uncollectible accounts?

A) $7,640

B) $9,920

C) $4,560

D) $5,360

27) A company has $314,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $1,890 debit balance. If the company estimates that $8,160 of accounts will be uncollectible based on an aging of Accounts Receivable, what will be the amount of the journal entry to record estimated uncollectible accounts?

A) $8,160

B) $6,270

C) $10,050

D) $3,780

28) James is a customer of Tucker, Inc. His current balance due is $1,560. It has been determined that he defaulted on his account. If the company uses the direct write-off method, what entry is necessary to write off the $1,560?

A) No entry will be necessary.

B) Debit Accounts Receivable/James; credit Bad Debt Expense.

C) Debit Bad Debt Expense; credit Accounts Receivable/James.

D) Debit Bad Debt Expense; credit Allowance for Doubtful Accounts.

29) Ashley is a customer of Smokey & Co. which uses the allowance method to account for uncollectible accounts. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Smokey & Co. record first to reinstate her account?

A) Debit Cash; credit Accounts Receivable/Ashley.

B) Debit Bad Debt Expense; credit Accounts Receivable/Ashley.

C) Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Ashley.

D) Debit Accounts Receivable/Ashley; credit Allowance for Doubtful Accounts.

30) Renaud, Inc. had credit sales for the period of $85,000. The balance in Allowance for Doubtful Accounts is a debit of $817. How much will the credit be to Allowance for Doubtful Accounts if Renaud uses the percent of credit sales method of estimating uncollectible accounts and they estimate that 5% of credit sales will be uncollectible?

A) $3,433

B) $4,291

C) $5,067

D) $4,250

 

 

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