Question : 13.2   Learning Objective 13-2 1) Gross Accounts Receivable $10,000. Allowance for : 1177163

 

13.2   Learning Objective 13-2

 

1) Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach?

A) $3,200

B) $2,800

C) $1,400

D) $3,000

 

2) Gross Accounts Receivable is $12,000. Allowance for Doubtful Accounts has a credit balance of $600. Net sales for the year are $100,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,900 as uncollectible. What would be the adjusted balance of the Allowance account under the balance sheet approach?

A) $2,000

B) $1,400

C) $2,500

D) $1,900

 

3) Using the aging method, estimated uncollectible accounts are $3,000. If the balance in the Allowance for Doubtful Accounts is a $600 credit before adjustment, what is the Bad Debts Expense adjustment for the period?

A) $3,000

B) $600

C) $2,400

D) $3,600

4) At December 31, 200x, Brooke’s Horse Stable unadjusted Allowance for Doubtful Accounts showed a debit balance of $432. An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000. The year-end adjusting entry for Bad Debts Expense:

A) includes a debit to the Allowance account for $568.

B) includes a credit to the Allowance account for $42.

C) includes a debit to the Allowance account for $822.

D) includes a credit to the Allowance account for $1,432.

 

5) Which method uses an aging of Accounts Receivable to calculate the Bad Debts Expense?

A) Income statement approach

B) Balance sheet approach

C) Aging the Accounts Receivable

D) Direct write-off

 

6) Harry’s Hardware estimates that approximately $1.75 out of every $100 of credit sales proves to be uncollectible. Barber calculates Bad Debts Expense using the:

A) income statement approach.

B) direct write-off method.

C) balance sheet approach.

D) aging the Accounts Receivable approach.

 

7) The current balance of Allowance for Doubtful Accounts is considered when calculating the current period’s Bad Debts Expense under the following approach:

A) direct write-off approach.

B) income statement approach.

C) balance sheet approach.

D) All of these answers are correct.

8) Joe’s Auto Repair estimates that approximately 3% of net credit sales are uncollectible. Joe’s calculates Bad Debts Expense using the:

A) direct write-off method.

B) income statement method.

C) gross method.

D) balance sheet method.

 

9) Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the income statement approach, Bad Debts Expense for the year is:

A) $1,000.

B) $3,000.

C) $2,800.

D) $1,200.

 

10) Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:

A) $1,000.

B) $3,000.

C) $2,800.

D) $1,200.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more