Question : 42.Karma’s entry required to recognize the uncollectible accounts expense for : 1254490

42.Karma’s entry required to recognize the uncollectible accounts expense for 2013 will   

A. increase total assets and retained earnings.

B. decrease total assets and retained earnings.

C. decrease total assets and increase net income.

D. increase total assets and decrease net income.

43.The net realizable value of receivables appearing on Karma’s 2013 balance sheet will amount to:   

A. $55,350.

B. $55,450.

C. $57,900.

D. $56,800.

44.Which of the following reflects the effect of the year-end adjusting entry to record estimated uncollectible accounts expense?     

A. Option A

B. Option B

C. Option C

D. Option D

45.Harvey Company uses the allowance method to account for uncollectible accounts. An account that had been previously written-off as uncollectible was recovered. How would the recovery affect the company’s accounting equation?   

A. Increase assets and increase equity.

B. Increase assets and decrease liabilities.

C. Reduce liabilities and increase equity.

D. Have no effect on assets, liabilities or equity.

46.How would accountants estimate the amount of a company’s uncollectible accounts expense?   

A. Consider new circumstances that are anticipated to be experienced in the future.

B. Compute as a percentage of credit sales.

C. Consult with trade association and business associates.

D. All of these.

47.Valdez Company uses the percent of receivables method to estimate uncollectible accounts expense. Valdez began 2013 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $38,250 and $2,900, respectively. During the year, the company wrote off $2,320 in uncollectible accounts. In preparation for the company’s 2013 estimate, Valdez prepared the following aging schedule:  What will Valdez record as Uncollectible Accounts Expense for 2013?   

A. $3,646

B. $746

C. $3,066

D. $2,320

48.Jobin Company ended 2012 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,000 and $1,800, respectively. During 2013, Jobin wrote off $3,000 of Uncollectible Accounts. After aging its receivables, Jobin estimates that the ending Allowance for Doubtful Accounts balance should be $3,200. What will Jobin report as Uncollectible Accounts Expense on its 2013 income statement?   

A. $3,200

B. $4,400

C. $1,400

D. $3,000

49.The practice of reporting the net realizable value of receivables in the financial statements is commonly called:   

A. the cash flow method of accounting for uncollectible accounts.

B. the direct write-off method of accounting for uncollectible accounts.

C. the allowance method of accounting for uncollectible accounts.

D. the accrual method of accounting for uncollectible accounts.

50.The amount of accounts receivable that is actually expected to be collected is known as:   

A. Net realizable value.

B. Uncollectible accounts expense.

C. The present value of accounts receivable.

D. Allowance for doubtful accounts.

51.A company that uses the allowance method to account for uncollectible accounts   

A. Reports the net realizable value of its accounts receivable on the balance sheet.

B. Does not record uncollectible accounts until the amount becomes significant.

C. Records Uncollectible Accounts Expense when a receivable is written off.

D. None of these.