Question :
51) Eyewear Unlimited has accounts receivable of $16,000 and an : 1212760
51) Eyewear Unlimited has accounts receivable of $16,000 and an allowance for doubtful accounts with a credit balance of $1,700 before a specific account of $60 is written off. What were net accounts receivable before and after the write-off?
A)
Before
After
$16,000
$14,360
B)
Before
After
$16,000
$16,000
C)
Before
After
$14,300
$14,240
D)
Before
After
$14,300
$14,300
52) Accounts receivable has a debit balance of $5,000, and the allowance for doubtful accounts has a credit balance of $440. A specific account of $160 is written off. What is the amount of net receivables after the write-off?
A) $4,720
B) $4,400
C) $4,560
D) $5,000
53) Sports Shop reports net accounts receivables on its December 31, 2014, balance sheet at $105,460. The allowance for doubtful accounts has a normal balance of $3,200 after adjustment. What is the ending balance in the accounts receivable account?
A) $102,260
B) $105,460
C) $108,660
D) $99,060
54) Which of the following entries would be used to account for uncollectible receivables using the allowance method?
A) Allowance for uncollectible accounts is debited and Bad debts expense is credited.
B) Bad debts expense is debited and Allowance for uncollectible accounts is credited.
C) Bad debts expense is debited and Accounts receivable is credited.
D) Accounts receivable is debited and Bad debts expense is credited.
Table 9-10 Armadillo Camera Shop
The following information is from the 2013 records of Armadillo Camera Shop:
Accounts receivable, December 31, 2013
$20,000 (debit)
Allowance for doubtful accounts, December 31, 2013, prior to adjustment
600 (debit)
Net credit sales for 2013
95,000
Accounts written off as uncollectible
during 2013
7,000
Cash sales during 2013
27,000
55) Refer to Table 9-10. Bad debts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. Which of the following will be the amount of bad debts expense?
A) $7,000
B) $3,450
C) $2,250
D) $2,850
56) Refer to Table 9-10. Bad debts expense is estimated by the aging-of-accounts-receivable method. Management estimates that $2,850 of accounts receivable will be uncollectible.
Which of the following will be the amount of bad debts expense?
A) $7,000
B) $2,250
C) $3,450
D) $2,850
57) Refer to Table 9-10. Bad debts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. Which of the following will be the balance of the allowance for uncollectible accounts after adjustment?
A) $7,000
B) $3,450
C) $2,850
D) $2,250
58) Refer to Table 9-10. Bad debts expense is estimated by the aging-of-accounts-receivable method. Management estimates that $2,850 of accounts receivable will be uncollectible. Which of the following will be the balance of the allowance for uncollectible accounts after adjustment?
A) $2,850
B) $3,450
C) $7,000
D) $2,250
59) Refer to Table 9-10. Bad debts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. Which of the following will be the amount of net accounts receivable after adjustment?
A) $16,550
B) $17,750
C) $17,150
D) $13,000
Table 9-11 Mark’s Sales
At the beginning of 2014, Mark’s sales had the following ledger balances:
Date
Accounts Receivable
Debit
Credit
Balance
24,000 Dr.
Date
Allowance for Doubtful Accounts
Debit
Credit
Balance
1,000 Cr.
Date
Bad Debts Expense
Debit
Credit
Balance
During the year there were $450,000 of credit sales, $460,000 of collections, and $3,700 of write-offs.
60) Refer to Table 9-11. At the end of the year, Mark’s adjusted for uncollectible account expense using the percent-of-sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the accounts receivable?
A) $10,300
B) $3,700
C) $14,000
D) $21,300
