Question : 41) Y Company obtained the following balances from its computerized : 1253207

41) Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable$  27,000

Allowance for uncollectible accounts       (3,000)

Net sales100,000

Bad debts expense0

The company estimates that 20% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:

A) $2,400.

B) $4,800.

C) $5,400.

D) $20,000.

42) Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable$  27,000

Allowance for uncollectible accounts       (3,000)

Net sales100,000

Bad debts expense0

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, what is the Net accounts receivable on the year-end balance sheet?

A) This is a trick question. Accounts receivable appear on the income statement, not the balance sheet.

B) $24,000

C) $22,000

D) $27,000

43) Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable$  27,000

Allowance for uncollectible accounts       300this is a positive number

Net sales100,000

Bad debts expense0

The company estimates that 20% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, the allowance for uncollectible accounts will be:

A) $(2,400).

B) $(4,800).

C) $(5,400).

D) $(20,000).

44) Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable$  27,000

Allowance for uncollectible accounts       300this is a positive number

Net sales100,000

Bad debts expense0

The company estimates that 20% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:

A) $5,100.

B) $5,700.

C) $5,400.

D) $20,300.

45) Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable$  27,000

Allowance for uncollectible accounts       300this is a positive number

Net sales100,000

Bad debts expense0

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, what is the net accounts receivable on the year-end balance sheet?

A) This is a trick question. Accounts receivable appear on the income statement, not the balance sheet.

B) $24,000

C) $25,300

D) $27,000

46) It is realistic for a firm to assume that 100% of accounts receivable will be collected.

47) The direct write-off method and the allowance method are methods used to adjust the balance in accounts receivable to reflect uncollectible accounts.

48) The direct write-off method provides a good match between the revenue (sale) and the bad debts expense, because the write-off is matched directly with the sale.

49) The allowance method provides a good match between the revenue (sale) and the bad debts expense, because the write-off is matched directly with the sale.

50) Corporations use the allowance method because it is required by GAAP.