Question : 31) KayCo began business January 1, 2012. During 2012, sales : 1253206

 

 

31) KayCo began business January 1, 2012. During 2012, sales were $650,000. The year-end accounts receivable balance was $104,000. The company estimates that 1.5% of sales will become bad debts. The financial statements for the year ended December 31, 2012 will show ________.

A) bad debts expense of $1,560 on the income statement

B) bad debts expense of $9,750 on the income statement

C) net accounts receivable of $94,250 on the income statement

D) bad debts expense of $1,560 on the balance sheet

 

32) KayCo began business January 1, 2012. During 2012, sales were $650,000. The year-end accounts receivable balance was $104,000. The company estimates that 10% of accounts receivable will be uncollectible. The financial statements for the year ended December 31, 2012 will show ________.

A) bad debts expense of $10,400 on the income statement

B) bad debts expense of $9,750 on the income statement

C) net accounts receivable of $94,250 on the balance sheet

D) bad debts expense of $10,400 on the balance sheet

33) Rusk, Inc. had the following balances at December 31, 2012, before recording any adjustments:

 

Sales$450,000

Accounts receivable$  30,000

Allowance for uncollectible accounts$       500a positive number

 

Rusk estimated that $3,000 of the receivables would be uncollectible. The financial statements for the year ended December 31, 2012 will show:

A) Bad debts expense of $2,500 on the income statement.

B) Allowance for uncollectible accounts of $(3,000) on the balance sheet.

C) Net accounts receivable of $27,000 on the balance sheet.

D) more than one of the above is correct.

 

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       (1,000)

Net sales200,000

Bad debts expense0

 

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:

A) $4,000.

B) $1,000.

C) $3,000.

D) $5,000.

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       (1,000)

Net sales200,000

Bad debts expense0

 

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, the allowance for uncollectible accounts will be:

A) $(1,000).

B) $(3,000).

C) $(4,000).

D) $(5,000).

 

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       (1,000)

Net sales200,000

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) $46,000

C) $45,000

D) $44,000

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       100this is a positive number

Net sales200,000

Bad debts expense0

 

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:

A) $4,000.

B) $1,000.

C) $3,000.

D) $5,000.

 

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       100this is a positive number

Net sales200,000

Bad debts expense0

 

The company estimates that 2% of net sales will be uncollectible. After the correct adjusting entry has been made, the allowance for uncollectible accounts will be:

A) $(4,100).

B) $(3,900).

C) $(4,000).

D) $(1,100).

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

 

Accounts receivable$  50,000

Allowance for uncollectible accounts       100this is a positive number

Net sales200,000

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) $46,100

C) $46,000

D) $45,900

 

40) 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, the allowance for uncollectible accounts will be:

A) $(2,400).

B) $(4,800).

C) $(5,400).

D) $(20,000).