Question : 119.The matching rule relates to credit losses by stating that : 1244431

119.The matching rule relates to credit losses by stating that Uncollectible Accounts Expense should be recorded

 

a.

for an exact amount.

b.

in the period of the loss.

c.

in the period of the sale.

d.

in the same period as allowed for tax purposes.

 

 

 

120.Which of the following account names should not be used in modern practice?

 

a.

Allowance for Bad Debts

b.

Uncollectible Accounts Expense

c.

Reserve for Bad Debts

d.

Allowance for Doubtful Accounts

 

 

 

121.Which of the following methods of recording uncollectible accounts expense would be described best as an income statement method?

 

a.

Accounts receivable aging method

b.

Percentage of net sales method

c.

Both direct charge-off method and accounts receivable aging method

d.

Direct charge-off method

 

 

 

122.Use this information to answer the following question.

 

The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $485,000. In the past, 2 percent of net sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 in uncollectible accounts.

 

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

 

a.

$10,700.

b.

$8,700.

c.

$1,000.

d.

$9,700.

 

 

 

 

 

 

 

123.Use this information to answer the following question.

 

The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $478,000. In the past, 2 percent of net sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 in uncollectible accounts.

 

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

 

a.

$1,000.

b.

$9,560.

c.

$8,560.

d.

$10,560.

 

 

 

124.Use this information to answer the following question.

 

The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of net sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $14,400 in uncollectible accounts.

 

Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

 

a.

$14,400.

b.

$14,900.

c.

$15,400.

d.

$13,400.

 

 

 

125.Use this information to answer the following question.

 

The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of net sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 in uncollectible accounts.

 

Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

 

a.

$13,500.

b.

$14,000.

c.

$14,500.

d.

$12,500.

 

 

 

126.Which of the following methods of recording uncollectible accounts expense would be described best as a balance sheet method?

 

a.

Percentage of net sales method

b.

Direct charge-off method

c.

Accounts receivable aging method

d.

Both percentage of net sales method and direct charge-off method

 

 

 

127.The balance in Allowance for Uncollectible Accounts must be considered prior to end-of-period adjustment when using which of the following methods?

 

a.

Both direct charge-off method and percentage of net sales method

b.

Direct charge-off method

c.

Accounts receivable aging method

d.

Percentage of net sales method

 

 

 

128.Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance of the Allowance for Uncollectible Accounts is an $18,000 credit before adjustment, what is the balance after adjustment?

 

a.

$54,000

b.

$72,000

c.

$18,000

d.

$38,000

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more