Question :
91. A debit balance in the Allowance for Doubtful Accounts A. is the : 1234141
91. A debit balance in the Allowance for Doubtful Accounts
A. is the normal balance for that account.
B. indicates that actual bad debt write-offs have been less than what was estimated.
C. cannot occur if the percentage of receivables method of estimating bad debts is used.
D. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.
92. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a
A. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
B. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
C. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
D. debit to Loss on Credit Sales and a credit to Accounts Receivable.
93. The balance in Allowance for Doubtful Accounts must be considered prior to end of period adjustment when using which of the following methods?
A. Analysis of receivables allowance method
B. Direct write-off method
C. Accrual method
D. Net realizable method
94. You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to
A. debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
B. debit Bad Debt Expense and credit Accounts Receivable.
C. debit Allowance for Doubtful Accounts and credit Accounts Receivable.
D. debit Allowance for Doubtful Accounts and credit Bad Debt Expense.
95. Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
A. Bad Debts Expense 8,000
Allowance for Doubtful Accounts 8,000
B. Bad Debts Expense 10,000
Allowance for Doubtful Accounts 10,000
C. Bad Debts Expense 8,000
Accounts Receivable 8,000
D. Bad Debts Expense 10,000
Accounts Receivable 10,000
96. Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts
A. Liabilities decrease.
B. Net Income is unchanged.
C. Total Assets are unchanged.
D. Total Assets decrease.
97. The amount of a promissory note is called the
A. realizable value
B. maturity value
C. face value
D. proceeds
98. The amount of the promissory note plus the interest earned on the due date is called the
A. realizable value
B. maturity value
C. face value
D. net realizable value
99. A 60-day, 10% note for $8,000, dated April 15, is received from a customer on account. The face value of the note is
A. $8,600
B. $7,200
C. $8,800
D. $8,000
100. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
A. $10,000
B. $10,300
C. $450
D. $9,550
