Question : 109.A company issues a check for $362 but records it : 1244430

109.A company issues a check for $362 but records it as $326. On the bank reconciliation, the $36 error should be

 

a.

added to the balance per books.

b.

deducted from the balance per bank.

c.

added to the balance per bank.

d.

deducted from the balance per books.

 

 

 

110.All of the following bank reconciliation items would result in an entry on the company’s books except

 

a.

fee for collection of note by bank.

b.

interest income.

c.

NSF check of customer.

d.

deposits in transit.

 

 

 

111.For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation?

 

a.

Deposit of $400 recorded by bank as $100

b.

Check issued for $52 recorded by company as $25

c.

A returned $300 check recorded by bank as $200

d.

Check issued for $37 recorded by company as $73

 

 

 

112.Which of the following bank reconciliation items would result in an entry on the company’s books?

 

a.

Outstanding checks

b.

Bank error

c.

Deposit in transit

d.

Interest income

 

 

 

113.The goal of a successful credit policy is to maximize the potential profit on total credit sales while

 

a.

selling only to customers who will not pay.

b.

minimizing the number of credit customers.

c.

limiting credit losses to an acceptable level.

d.

keeping credit sales as low as possible.

 

 

 

 

 

114.The account Allowance for Uncollectible Accounts is necessary because

 

a.

management should know how many credit losses have been sustained over the years.

b.

when recording uncollectible accounts expense, it is not possible to predict specifically which accounts will not be collected.

c.

uncollected accounts that are written off must be accumulated in a separate account.

d.

a liability results when a credit sale is made.

 

 

 

115.The account Allowance for Uncollectible Accounts is classified as a(n)

 

a.

contra account to Uncollectible Accounts Expense.

b.

expense.

c.

liability.

d.

contra account to Accounts Receivable.

 

 

 

116.Under the allowance method, Uncollectible Accounts Expense is recorded

 

a.

several times during the accounting period.

b.

when an individual account is written off.

c.

for an estimated amount.

d.

for a known amount.

 

 

 

117.The matching rule

 

a.

is violated when the allowance method is used.

b.

requires that all bad-debt losses be recorded when an individual customer defaults.

c.

necessitates the recording of an estimated amount for bad debts.

d.

results in the recording of a known amount for bad-debt losses.

 

 

 

118.If the amount of uncollectible accounts expense is overstated at year end,

 

a.

net income will be overstated.

b.

total liabilities and stockholders’ equity will be overstated.

c.

net Accounts Receivable will be understated.

d.

Allowance for Uncollectible Accounts will be understated.

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more