Question :
43.On December 31, prior to adjustments, the balance of Accounts : 1168988
43.On December 31, prior to adjustments, the balance of Accounts Receivable is $32,000 and Allowance for Doubtful Accounts has a credit balance of $190. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for
A. $190.
B. $1,410.
C. $1,600.
D. $1,790.
44.On December 31, prior to adjustments, the balance of Accounts Receivable is $26,000 and Allowance for Doubtful Accounts has a debit balance of $300. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for
A. $1,000.
B. $1,300.
C. $1,600.
D. $300.
45.On December 31, prior to adjustments, the balance of Accounts Receivable is $52,000 and Allowance for Doubtful Accounts has a debit balance of $600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for
A. $600.
B. $2,000.
C. $2,600.
D. $3,200.
46.Allowance for Doubtful Accounts has a credit balance of $1,000 immediately before the write-off of a $300 account receivable. The credit balance of Allowance for Doubtful Accounts immediately after the write-off is
A. $700.
B. $1,000.
C. $1,300.
D. $300.
47.Allowance for Doubtful Accounts has a credit balance of $2,000 immediately before the write-off of a $600 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is
A. $600 debit.
B. $1,400 credit.
C. $1,400 debit.
D. $2,600 credit.
48.When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off of a specific account consists of a debit to
A. Uncollectible Accounts Expense and a credit to Accounts Receivable.
B. Allowance for Doubtful Accounts and a credit to Accounts Receivable.
C. Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.
D. Accounts Receivable and a credit to Allowance for Doubtful Accounts.
49.Millie’s Draperies uses the allowance method of recording bad debts. On June 13, the company concluded that the $200 account balance of Jane Murphy should be charged off. The entry to write off Murphy’s account will be:
A.
B.
C.
D.
50.Millie’s Draperies uses the allowance method of recording bad debts. On June 13, the $200 account balance of Jane Murphy was charged off. However, on August 5, Murphy paid $80 of the amount previously written off. The entry to record the payment from Murphy would include:
A. debit Accounts Receivable $80; credit Allowance for Doubtful Accounts $80
B. debit Accounts Receivable $200; credit Allowance for Doubtful Accounts $200
C. debit Allowance for Doubtful Accounts $80; credit Cash $80
D. debit Cash $80; credit Uncollectible Accounts Expense $80
51.A firm using the allowance method to provide for losses from uncollectible accounts collected the cash due from a customer whose account was previously written off. The entry to reinstate the customer’s account included a credit to
A. Sales.
B. Accounts Receivable.
C. Uncollectible Accounts Expense.
D. Allowance for Doubtful Accounts.
52.When a firm uses the allowance method to provide for losses for uncollectible accounts, the collection of an account previously written off as uncollectible requires an entry to
A. reinstate the account receivable.
B. increase the balance of the Sales account.
C. reduce the balance of Uncollectible Accounts Expense.
D. decrease the balance of the Allowance for Doubtful Accounts.
