Question : 11) The balance sheet of Rogers Company reports: accounts receivable : 1212756

11) The balance sheet of Rogers Company reports: accounts receivable (less allowance for doubtful accounts of $25,700), $695,500. Therefore Rogers Company’s gross accounts receivable must be $721,200.

12) Aging-of-accounts-receivable and percent-of-accounts receivable are both considered income-statement approaches in estimating uncollectible accounts.

13) If the allowance method of accounting for doubtful receivables is used, what account is credited in the entry to write off a customer’s account as uncollectible?

A) allowance for doubtful accounts

B) accounts receivable

C) bad-debt expense

D) sales returns and allowances

14) Under the income-statement approach (percent-of-sales approach), the entry to accrue bad-debt expense involves:

A) a debit to allowance for doubtful accounts and a credit to bad-debt expense.

B) a debit to bad-debt expense and a credit to allowance for doubtful accounts.

C) a debit to bad-debt expense and a credit to accounts receivable.

D) a debit to allowance for doubtful accounts and a credit to accounts receivable.

15) The current credit balance in allowance for doubtful accounts is $150. Management estimates that 2.5% of net credit sales of $105,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement?

A) $2,775

B) $2,475

C) $2,650

D) $2,625

16) The current credit balance in allowance for doubtful accounts is $1,150. Management estimates that 2% of net credit sales of $100,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement?

A) $2,000

B) $850

C) $3,150

D) $2,850

17) The current debit balance in allowance for doubtful accounts is $150. Management estimates that 2% of net credit sales of $100,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement?

A) $2,150

B) $1,850

C) $3,150

D) $2,000

18) Allowance for doubtful accounts has a credit balance of $900 at the end of the current year (prior to adjustment). An analysis of the aged accounts in the customers’ ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a debit to:

A) bad-debt expense for $15,100.

B) bad-debt expense for $16,900.

C) allowance for doubtful accounts for $15,100.

D) allowance for doubtful accounts for $16,900.

19) Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment). An analysis of the accounts in the customers’ ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a credit to:

A) bad-debt expense for $16,980.

B) allowance for doubtful accounts for $16,980.

C) allowance for doubtful accounts for $15,020.

D) accounts receivable accounts for $15,020.

20) Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment). Net credit sales for the current period amount to $900,000 and 2.5% is estimated to be uncollectible. The adjusting entry would require a credit to:

A) bad-debt expense for $23,480.

B) allowance for doubtful accounts for $21,520.

C) allowance for doubtful accounts for $22,500.

D) accounts receivable accounts for $22,500.