Question : 129.Using the accounts receivable aging method, estimated uncollectible accounts $50,000. : 1244432

129.Using the accounts receivable aging method, estimated uncollectible accounts are $50,000. If the balance of the Allowance for Uncollectible Accounts is an $18,000 debit before adjustment, what is the balance after adjustment?

 

a.

$18,000

b.

$50,000

c.

$68,000

d.

$32,000

 

 

 

130.The balance of Accounts Receivable, net of the allowance account, is $35,000 before the write-off of a $2,800 account. What is the Accounts Receivable balance, net of the allowance account, after the write-off?

 

a.

$2,800

b.

$37,800

c.

$32,200

d.

$35,000

 

 

 

131.Under the allowance method, when a specific account is written off,

 

a.

net income will decrease.

b.

total assets will increase.

c.

total assets will decrease.

d.

total assets will be unchanged.

 

 

 

132.A company that uses the allowance method writes off a specific account as uncollectible, but then the customer pays. The entries made upon receiving payment will

 

a.

decrease Cash.

b.

decrease Uncollectible Accounts Expense.

c.

increase Allowance for Uncollectible Accounts.

d.

decrease Accounts Receivable.

 

 

 

133.Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts,

 

a.

net income is unchanged.

b.

liabilities increase.

c.

total assets are unchanged.

d.

total assets decrease.

 

 

 

134.One might infer from a debit balance in Allowance for Uncollectible Accounts that

 

a.

the accounts receivable aging method apparently is being used.

b.

Uncollectible Accounts Expense has been overestimated.

c.

more has been written off than had been estimated.

d.

a posting error has been made.

 

 

 

135.A company performs the aging of accounts receivable calculation and arrives at an estimate for uncollectible accounts of $800. If Allowance for Uncollectible Accounts has a debit balance of $300 prior to the year-end adjustment, what is the dollar amount of  the adjustment?

 

a.

$1,100

b.

$800

c.

$5,500

d.

$300

 

 

 

136.A company has net sales of $50,000 during the year. At year end (before an adjustment is made), Allowance for Uncollectible Accounts has a credit balance of $2,500. If the company estimates that 3 percent of net sales are uncollectible, what is the balance in the allowance account after the year-end adjustment has been made?

 

a.

$1,500 credit balance

b.

$4,000 credit balance

c.

$1,000 debit balance

d.

$1,500 debit balance

 

 

 

137.The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 in uncollectible accounts receivable.

 

Using the percentage of net sales method, Uncollectible Accounts Expense would be debited for

 

a.

$10,000.

b.

$9,000.

c.

$6,000.

d.

$7,500.

 

 

 

138.The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 in uncollectible accounts receivable.

 

Using the percentage of net sales method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

 

a.

$7,500.

b.

$6,000.

c.

$9,000.

d.

$10,000.