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