Question : 91. To record estimated uncollectible accounts using the allowance method, the : 1247200

 

91. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a 
A. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
B. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
C. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
D. debit to Loss on Credit Sales and a credit to Accounts Receivable.

92. The balance in Allowance for Doubtful Accounts must be considered prior to end of period adjustment when using which of the following methods? 
A. Allowance method
B. Direct write-off method
C. Accrual method
D. Net realizable method

93. You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments.  Assuming you use the allowance method, the entry you make is to  
A. debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
B. debit Bad Debt Expense and credit Accounts Receivable.
C. debit Allowance for Doubtful Accounts and credit Accounts Receivable.
D. debit Allowance for Doubtful Accounts and credit Bad Debt Expense.

94. Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? 
A. Bad Debts Expense                                                13,000
           Allowance for Doubtful Accounts                                13,000
B. Bad Debts Expense                                              15,000
           Allowance for Doubtful Accounts                                15,000
C. Bad Debts Expense                                                13,000
           Accounts Receivable                                                    13,000
D. Bad Debts Expense                                               15,000
           Accounts Receivable                                                  15,000

95. Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts 
A. Liabilities decrease.
B. Net Income is unchanged.
C. Total Assets are unchanged.
D. Total Assets decrease.

96. The amount of a promissory note is called the  
A. realizable value
B. maturity value
C. face value
D. proceeds

97. The amount of the promissory note plus the interest earned on the due date is called the  
A. realizable value
B. maturity value
C. face value
D. net realizable value

98. A 60-day, 10% note for $9,000, dated April 15, is received from a customer on account.  The face value of the note is  
A. $9,850
B. $7,200
C. $9,900
D. $9,000

99. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  The maturity value of the note is  
A. $10,000
B. $10,200
C. $200
D. $9,800

100. Interest on a note can be calculated without knowledge of the  
A. note’s maturity date
B. rate of interest
C. notes duration
D. principal amount

 

 

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