Question : 71. Allowance for Doubtful Accounts listed the balance sheet under the : 1234162

71. Allowance for Doubtful Accounts is listed on the balance sheet under the caption 
A. stockholders’ equity
B. investments
C. fixed assets
D. current assets

72. 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.

73. Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers’ accounts indicates doubtful accounts of $12,900. Which of the following entries records the proper provision for doubtful accounts? 
A. debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
B. debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense, $14,000
C. debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense, $11,800
D. debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

74. Allowance for Doubtful Accounts has a credit balance of $1,500 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, $16,400; credit Uncollectible Accounts Expense, $16,400
B. debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
C. debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
D. debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400

75. 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

76. 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

77. 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

78. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be 
A. $1,200
B. $3,000
C. $3,600
D. $7,200

79. 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)

80. Donovan 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, Donovan 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