Question :
51. Two methods of accounting for uncollectible accounts the A. direct write-off method : 1227246
51. Two methods of accounting for uncollectible accounts are the
A. direct write-off method and the allowance method.
B. allowance method and the accrual method.
C. allowance method and the net realizable method.
D. direct write-off method and the accrual method.
52. If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible?
A. Uncollectible Accounts Expense
B. Accounts Receivable
C. Allowance for Doubtful Accounts
D. Interest Expense
53. One of the weaknesses of the direct write-off method is that it
A. understates accounts receivable on the balance sheet
B. violates the matching principle
C. is too difficult to use for many companies
D. is based on estimates
54. The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:
A. debit Allowance for Doubtful Accounts; credit Accounts Receivable
B. debit Sales Returns and Allowance, credit Accounts Receivable
C. debit Bad Debt Expense; credit Allowance for Doubtful Accounts
D. debit Bad Debt Expense; credit Accounts Receivable
55. If the direct write-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 Receivable
B. Accounts Receivable
C. Allowance for Doubtful Accounts
D. Bad Debts Expense
56. If the allowance 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. Allowance for Doubtful Accounts
C. Accounts Receivable
D. Interest Expense
57. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?
A. $30,000
B. $430,000
C. $460,000
D. $490,000
58. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible?
A. Uncollectible Accounts Expense
B. Accounts Receivable
C. Allowance for Doubtful Accounts
D. Interest Expense
59. On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the
A. Uncollectible accounts expense for the year
B. total of the accounts receivables written-off during the year
C. total estimated uncollectible accounts as of the end of the year
D. sum of all accounts that are past due.
60. What is the type of account and normal balance of Allowance for Doubtful Accounts?
A. Contra asset, credit
B. Asset, debit
C. Asset, credit
D. Contra asset, debit
