Question :
21. Which one of the approaches for the allowance procedure emphasizes : 1224912
21. Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet? A. The percentage-of-receivables approachB. The percentage-of-sales approachC. The percentage-of-accounts written off methodD. The direct write-off method
22. Ready Corporation’s accounts receivable balance after posting net collections from customers for 2012 is $190,000. Management feels that uncollected accounts should be based on the following aging of accounts receivable and uncollected percentages. There are $120,000 that are 1 to 30 days past due at 3% and $70,000 that are 31 to 60 days past due at 8%. The net realizable value of the accounts receivable is: A. $184,400B. $186,400C. $190,000D. $180,800
23. Outlook Department Store’s accounts receivable balance after posting net collections from customers for 2012 is $180,000. The customers took advantage of sales discounts of $15,000. Management aged the accounts receivable and estimate for uncollected account percentages as follows:
$90,000
Current at 2%
$50,000
1-30 days past due at 5%
$30,000
31-60 days past due at 10%
$10,000
60+ days past due at 25%
The net realizable value of the accounts receivable is: A. $173,200.B. $170,200.C. $172,700.D. $180,000.
24. Collision CorporationData for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales
$2,000,000
Sales returns and allowances
40,000
Accounts receivable (December 31, 2012)
610,000
Allowance for bad debts
(Before adjustment at December 31, 2012)
15,000
Estimated amount of uncollected accounts based on aging analysis
55,000
Refer to the information provided for Collision Corporation. If Collision estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2012? A. $40,000B. $39,200C. $24,200D. $25,000
25. Collision CorporationData for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales
$2,000,000
Sales returns and allowances
40,000
Accounts receivable (December 31, 2012)
610,000
Allowance for bad debts
(Before adjustment at December 31, 2012)
15,000
Estimated amount of uncollected accounts based on aging analysis
55,000
Refer to the information presented for Collision Corporation. If Collision estimates its bad debt to be 2% of net credit sales, what will be the balance in the Allowance for Bad Debts account after the adjustment for bad debts? A. $15,000B. $40,000C. $39,200D. $54,200
26. Collision CorporationData for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales
$2,000,000
Sales returns and allowances
40,000
Accounts receivable (December 31, 2012)
610,000
Allowance for bad debts
(Before adjustment at December 31, 2012)
15,000
Estimated amount of uncollected accounts based on aging analysis
55,000
Refer to the information provided for Collision Corporation. If Collision uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2012? A. $40,000B. $55,000C. $15,000D. $39,200
27. Collision CorporationData for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales
$2,000,000
Sales returns and allowances
40,000
Accounts receivable (December 31, 2012)
610,000
Allowance for bad debts
(Before adjustment at December 31, 2012)
15,000
Estimated amount of uncollected accounts based on aging analysis
55,000
Refer to the information provided for Collision Corporation. If Collision uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense? A. $610,000B. $555,000C. $595,000D. $570,000
28. Profile CorporationThe following data concern Profile Corporation for 2012.
Accounts receivable–January 1, 2012
$ 250,000
Credit sales during 2012
1,000,000
Collections from credit customers during 2012
750,000
Allowance for bad debts–January 1, 2012
20,000
Estimated uncollected accounts based on an aging analysis
45,000
Refer to the information provided for Profile Corporation. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2012? A. $45,000B. $20,000C. $25,000D. $15,000
29. Profile CorporationThe following data concern Profile Corporation for 2012.
Accounts receivable–January 1, 2012
$ 250,000
Credit sales during 2012
1,000,000
Collections from credit customers during 2012
750,000
Allowance for bad debts–January 1, 2012
20,000
Estimated uncollected accounts based on an aging analysis
45,000
Refer to the data provided for Profile Corporation. If the aging approach is used to estimate bad debts, find the balance in the Allowance for Bad Debts after the bad debt expense adjustment for 2012. A. $20,000B. $15,000C. $25,000D. $45,000
30. Bolt CorporationThe following data concern Bolt Corporation for 2012.
Accounts receivable–January 1, 2012
$455,000
Credit sales during 2012
900,000
Collections from credit customers during 2012
825,000
Allowance for bad debts before adjustment for the year
2,100
Estimated uncollected accounts based on an aging analysis
29,200
Refer to the information provided for Bolt Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2012? A. $ 2,100B. $27,100C. $29,200D. $31,300
0
Sun9681
