Question : 31. A company’s adjustment for uncollectible accounts at year-end would include : 1236172

31. A company’s adjustment for uncollectible accounts at year-end would include a: 
A. Debit to Bad Debt Expense.
B. Credit to Accounts Receivable.
C. Debit to Accounts Receivable.
D. Debit to Allowance for Uncollectible Accounts.

32. Allowance for Uncollectible Accounts is: 
A. An expense account.
B. A contra asset account.
C. A contra revenue account.
D. A liability account.

33. Richard LLC accounts for possible bad debts using the allowance method. When an actual bad debt occurs, what effect does it have on the accounting equation? 
A. Increases assets and increases stockholders’ equity.
B. Decreases assets and decreases stockholders’ equity.
C. Decreases assets and decreases liabilities.
D. No effect on the accounting equation.

34. On December 31, 2012, Mark Inc. estimates future bad debts to be $6,500. The Allowance for Uncollectible Accounts has a credit balance of $2,500 before any year-end adjustment. What adjustment should Mark Inc. record for the estimated bad debts on December 31, 2012? 
A. Debit Bad Debt Expense, $6,500; credit Allowance for Uncollectible Accounts, $6,500.
B. Debit Bad Debt Expense, $4,000; credit Allowance for Uncollectible Accounts $4,000.
C. Debit Allowance for Uncollectible Accounts, $9,000; credit Bad Debt Expense, $6,500.
D. Debit Bad Debt Expense, $9,000; credit Allowance for Uncollectible Accounts, $9,000.

35. Suppose that the balance of a company’s Allowance for Uncollectible Accounts was $6,200 (credit) at the end of 2012, prior to any adjustments. The company estimated that the total of uncollectible accounts in its accounts receivable was $44,300 at the end of 2012. Total accounts receivable were $150,000 on December 31, 2012, and total credit sales for 2012 were $330,000. What amount of bad debt expense would appear in the company’s 2012 income statement, assuming the company uses the percentage-of-receivables method? 
A. $38,100.
B. $105,700.
C. $33,000.
D. $50,500.

36. At the end of 2012, Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (credit) before any adjustment. The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method. Murray State’s adjustment on December 31, 2012, to record its estimated uncollectible accounts included a: 
A. Credit to Allowance for Uncollectible Accounts of $12,000.
B. Debit to Bad Debt Expense of $7,500.
C. Credit to Allowance for Uncollectible Accounts of $7,500.
D. Both b and c.

37. At the end of 2012, Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (debit) before any adjustment. The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method. Murray State’s adjustment on December 31, 2012, to record its estimated uncollectible accounts included a: 
A. Credit to Allowance for Uncollectible Accounts of $12,000.
B. Debit to Bad Debt Expense of $16,500.
C. Credit to Allowance for Uncollectible Accounts of $16,500.
D. Both b and c.

38. On December 31, 2012, Larry’s Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $53,600 and $1,325, respectively. During 2013, Larry’s wrote off $1,465 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,280 at December 31, 2013. Bad debt expense for 2013 would be: 
A. $1,280.
B. $1,465.
C. $1,420.
D. $1,140.

39. On December 31, 2012, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,400 and $940, respectively. During 2013, Coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at December 31, 2013. Bad debt expense for 2013 would be: 
A. $320.
B. $1,140.
C. $820.
D. $1,020.

40. Which of the following is recorded by a credit to Accounts Receivable? 
A. Sale of inventory on account.
B. Estimating the annual allowance for uncollectible accounts.
C. Estimating annual sales returns.
D. Write-offs of bad debts.