Question :
21) The period end adjusting entry for bad debt expense : 1232328
21) The period end adjusting entry for bad debt expense under the allowance method is:
A) Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.
B) not required.
C) Cash, debit; Accounts Receivable/customer name, credit.
D) Bad Debt Expense, debit; Accounts Receivable/customer name, credit.
22) The journal entry to write off a customer’s account under the allowance method is:
A) Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.
B) not required.
C) Allowance for Uncollectible Accounts, debit; Accounts Receivable/customer name, credit.
D) Bad Debt Expense, debit; Accounts Receivable/customer name, credit.
23) Under the allowance method, to record the receipt of cash after an account has previously being written off, you would first:
A) debit Cash and credit the customer’s account.
B) reinstate the customer’s account.
C) debit Allowance for Doubtful Accounts.
D) debit Bad Debt Expense.
24) A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,250 credit balance. If the company estimates 7% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?
A) $16,450
B) $23,700
C) $ 7,250
D) $ 9,200
25) A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has an $8,150 debit balance. If the company estimates 6% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?
A) $ 8,150
B) $27,170
C) $10,870
D) $19,020
26) A company has $286,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $2,280 credit balance. If the company estimates that $7,640 of accounts will be uncollectible based on an aging of Accounts Receivable, what will be the amount of the journal entry to record estimated uncollectible accounts?
A) $7,640
B) $9,920
C) $4,560
D) $5,360
27) A company has $314,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $1,890 debit balance. If the company estimates that $8,160 of accounts will be uncollectible based on an aging of Accounts Receivable, what will be the amount of the journal entry to record estimated uncollectible accounts?
A) $8,160
B) $6,270
C) $10,050
D) $3,780
28) James is a customer of Tucker, Inc. His current balance due is $1,560. It has been determined that he defaulted on his account. If the company uses the direct write-off method, what entry is necessary to write off the $1,560?
A) No entry will be necessary.
B) Debit Accounts Receivable/James; credit Bad Debt Expense.
C) Debit Bad Debt Expense; credit Accounts Receivable/James.
D) Debit Bad Debt Expense; credit Allowance for Doubtful Accounts.
29) Ashley is a customer of Smokey & Co. which uses the allowance method to account for uncollectible accounts. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What will Smokey & Co. record first to reinstate her account?
A) Debit Cash; credit Accounts Receivable/Ashley.
B) Debit Bad Debt Expense; credit Accounts Receivable/Ashley.
C) Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Ashley.
D) Debit Accounts Receivable/Ashley; credit Allowance for Doubtful Accounts.
30) Renaud, Inc. had credit sales for the period of $85,000. The balance in Allowance for Doubtful Accounts is a debit of $817. How much will the credit be to Allowance for Doubtful Accounts if Renaud uses the percent of credit sales method of estimating uncollectible accounts and they estimate that 5% of credit sales will be uncollectible?
A) $3,433
B) $4,291
C) $5,067
D) $4,250
