Question :
71. On the balance sheet, the amount shown for the Allowance : 1247229
71. 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.
72. Allowance for Doubtful Accounts has a credit balance of $1,200 at the end of the year (before adjustment), and an analysis of customers’ accounts indicates doubtful accounts of $13,900. Which of the following entries records the proper provision for doubtful accounts?
A. debit Uncollectible Accounts Expense, $15,100; credit Allowance for Doubtful Accounts, $15,100
B. debit Allowance for Doubtful Accounts, $15,100; credit Uncollectible Accounts Expense, $15,100
C. debit Allowance for Doubtful Accounts, $12,700; credit Uncollectible Accounts Expense, $12,700
D. debit Uncollectible Accounts Expense, $12,700; credit Allowance for Doubtful Accounts, $12,700
73. Allowance for Doubtful Accounts has a credit balance of $1,400 at the end of the year (before adjustment), and an analysis of customers’ accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts?
A. debit Allowance for Doubtful Accounts, $16,500; credit Uncollectible Accounts Expense, $16,500
B. debit Allowance for Doubtful Accounts, $19,300; credit Uncollectible Accounts Expense, $19,300
C. debit Uncollectible Accounts Expense, $19,300; credit Allowance for Doubtful Accounts, $19,300
D. debit Uncollectible Accounts Expense, $16,500; credit Allowance for Doubtful Accounts, $16,500
74. What is the type of account and normal balance of Allowance for Doubtful Accounts?
A. Contra asset, credit
B. Asset, debit
C. Liability, credit
D. Contra asset, debit
75. A company uses the estimate of sales method to account for uncollectible accounts. When the firm writes off a specific customer’s account receivable
A. total current assets are reduced
B. total expenses for the period are increased
C. total current assets are reduced and total expenses are increased
D. there is no effect on total current assets or total expenses
76. An estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. After preparing the adjusting entry at the end of the year, the balance in the Uncollectible Accounts Expense is
A. $110
B. $780
C. $670
D. $890
77. Abbott Company uses the estimate of sales method of accounting for uncollectible accounts. Abbott estimates that 3% of all credit sales will be uncollectible. On January 1, 2009, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2009, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2009, balance in the Uncollectible Accounts Expense would be
A. $1,200
B. $3,000
C. $3,600
D. $7,200
78. The balance in Allowance for Doubtful Accounts must be carefully considered prior to the end of the year adjustment when applying which method?
A. direct write-off method
B. estimate based on sales
C. estimate based on an analysis of receivables
D. both (b) and (c)
79. Dalton Company uses the estimate based on analysis of receivables to account for uncollectible accounts. The company has determined that the Irish Company account is uncollectible. To write-off this account, Dalton should debit
A. Uncollectible Accounts Expense and credit Accounts Receivable
B. Uncollectible Accounts Expense and credit Allowance for Doubtful Accounts
C. Allowance for Doubtful Accounts and credit Accounts Receivable
D. Accounts receivable and credit Allowance for Doubtful Accounts
80. Using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a
A. credit to Bad Debt Expense
B. credit to Accounts Receivable
C. debit to Allowance for Doubtful Accounts
D. debit to Accounts Receivable
