Question :
53.Nigel Lighting uses the direct charge-off method of recording bad : 1168989
53.Nigel Lighting uses the direct charge-off method of recording bad debts. On September 4, the company concluded that the $300 account balance of Louis Blue should be charged off. The entry to write off Blue’s account will be:
A.
B.
C.
D.
54.Nigel Lighting uses the direct charge-off method of recording bad debts. On Sept. 4, the $300 account balance of Louis Blue was charged off. However, on November 15, Blue paid $70 of the amount previously written off. The entry to record the payment from Blue would include:
A. debit Accounts Receivable $300; credit Uncollectible Account Expense $300
B. debit Allowance for Doubtful Accounts $70; credit Accounts Receivable $70
C. debit Uncollectible Account Expense $70; credit Cash $70
D. debit Cash $70; credit Accounts Receivable $70
55.If the direct charge-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible?
A. Uncollectible Accounts Expense
B. Accounts Receivable
C. Allowance for Doubtful Accounts
D. Uncollectible Accounts Payable
56.Common internal controls for accounts receivable would not include:
A. sending invoices and monthly statements to customers.
B. developing procedures that ensure that all credit sales are recorded and customers’ account are debited.
C. allowing all sales personnel to charge-off any accounts deemed uncollectible.
D. authorizing all credit sales.
57.On December 31, 2016, prior to adjustments, Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a credit balance of $1,200. The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:
A. $13,040
B. $14,240
C. $15,440
D. $17,800
58.On December 31, 2016, prior to adjustments, Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a credit balance of $1,200. The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year. The balance in the Allowance for Doubtful Accounts after the adjusting entry for the estimated losses from uncollectible accounts is:
A. $13,040
B. $14,240
C. $15,440
D. $17,800
59.On December 31, 2016, prior to adjustments, Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200. The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:
A. $13,040
B. $14,240
C. $15,440
D. $17,800
60.On December 31, 2016, prior to adjustments, Accounts Receivable has a debit balance of $370,000 and the Allowance for Doubtful Accounts has a credit balance of $400. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is
A. $18,100
B. $18,500
C. $18,900
D. $17,800
61.Uncollectible Accounts Expense is classified as
A. a Contra Asset on the Balance Sheet.
B. a Contra Expense on the Income Statement.
C. an Expense on the Income Statement.
D. a Liability on the Balance Sheet.
62.On December 31, 2016, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts includes a:
A. a credit to Allowance for Doubtful Accounts for $6,500
B. a debit to Uncollectible Accounts Expense for $5,750
C. a credit to Allowance for Doubtful Accounts for $7,250
D. a debit to Uncollectible Accounts Expense for $6,500
63.On December 31, 2016, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts. The balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be:
A. a credit of $6,500
B. a credit of $5,750
C. a credit of $7,250
D. a debit of $6,500
64.Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year, before adjustments. Sales for the year amounted to $870,000, sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000. If the uncollectible accounts expense is estimated at 2% of net sales, the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be
A. $17,400
B. $16,500
C. $16,000
D. $15,500
65.Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year, before adjustments. Sales for the year amounted to $870,000, sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000. If the uncollectible accounts expense is estimated at 2% of net sales, the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be
A. $17,400
B. $16,500
C. $16,000
D. $15,500
66.Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year, before adjustments. Sales for the year amounted to $760,000, sales discounts amounted to $12,000 and sales returns and allowances amounted to $36,000. If the uncollectible accounts expense is estimated at 2% of net sales, the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be
A. $15,340
B. $13,140
C. $14,240
D. $15,200
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