Question : 116.Craigmont uses the allowance method to account for uncollectible accounts. : 1237028

116.Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?   

A.$4,625

B.$3,960

C.$5,290

D.$4,750

E.$4,825

117.On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from customer Payton Summers as payment on account. Compute the maturity date for the note.   

A.October 8

B.October 7

C.November 8

D.November 7

E.November 6

118.On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note.   

A.$8,628

B.$8,192

C.$8,613

D.$8,500

E.$8,670

119.On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note?   

A.Debit Accounts Receivable $8,500; credit Sales $8,500.

B.Debit Notes Receivable $8,670; credit Sales $8,670.

C.Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.

D.Debit Notes Receivable $8,500; credit Sales $8,500.

E.Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.

120.On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on the maturity date assuming the maker pays in full?    

A.Debit Notes Receivable $8,500; debit Interest Receivable $170; credit Sales $8,670.

B.Debit Cash $8,670; credit Interest Revenue $170; credit Notes Receivable $8,500.

C.Debit Cash $8,628; credit Interest Revenue $128; credit Notes Receivable $8,500.

D.Debit Cash $8,613; credit Interest Revenue $113; credit Notes Receivable $8,500.

E.Debit Cash $8 500; credit Notes Receivable $8,500.

121.On November 19, Nicholson Company receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end?   

A.Debit Interest Receivable $1,200; credit Interest Revenue $1,200.

B.Debit Interest Receivable $140; credit Interest Revenue $140.

C.Debit Interest Receivable $200; credit Interest Revenue $200.

D.Debit Interest Revenue $140; credit Interest Receivable $140.

E.Debit Interest Revenue $200; credit Interest Receivable $200.

122.On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on the November 1 to record the note acceptance?   

A.Debit Note Receivable $10,000; credit Cash $10,000.

B.Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

C.Debit Note Receivable $10,000; credit Sales $10,000.

D.Debit Cash $10,000; credit Sales $10,000.

E.Debit Sales $10,000; credit Accounts Receivable $10,000.

123.The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: 

A.Debit Bad Debts Expense $13,975; credit Allowance for Doubtful Accounts $13,975.

B.Debit Bad Debts Expense $15,225; credit Allowance for Doubtful Accounts $15,225.

C.Debit Bad Debts Expense $16,475; credit Allowance for Doubtful Accounts $16,475.

D.Debit Bad Debts Expense $7,350; credit Allowance for Doubtful Accounts $7,350.

E.Debit Bad Debts Expense $17,350; credit Allowance for Doubtful Accounts $17,350.

124.The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. 

A.Debit Bad Debts Expense $19,750; credit Allowance for Doubtful Accounts $19,750.

B.Debit Bad Debts Expense $15,225; credit Allowance for Doubtful Accounts $15,225.

C.Debit Bad Debts Expense $22,250; credit Allowance for Doubtful Accounts $22,250.

D.Debit Bad Debts Expense $7,350; credit Allowance for Doubtful Accounts $7,350.

E.Debit Bad Debts Expense $21,000; credit Allowance for Doubtful Accounts $21,000.

125.On February 1, a customer’s account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?    

A.Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300.

B.Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300.

C.Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300.

D.Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.

E.Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300.