Question : 52.Hailey Medical Supply Co., which had no beginning balance in : 1254491

 

52.Hailey Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $80,000 of revenue on account during 2013. During 2013, Hailey collected $64,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 1% of revenue on account. The amount of net realizable value of receivables on the December 31, 2013 balance sheet would be:   

A. $15,360.

B. $15,200.

C. $16,000.

D. $15,000.

53.Which one of the following is not an accurate description of the Allowance for Doubtful Accounts?   

A. The account is an income statement account.

B. The account is a contra account.

C. The amount of the Allowance for Doubtful Accounts decreases the net realizable value of a company’s receivables.

D. The account is increased by an estimate of uncollectible accounts expense.

54.The percent of receivables method to estimate uncollectible accounts expense is also known as:   

A. the income statement approach.

B. the direct write-off approach.

C. the balance sheet approach.

D. the credit sales approach.

55.The primary reason for a business to allow customers to purchase goods or services on account is to:   

A. decrease the marketability of the company’s inventory.

B. increase cash flow from financing.

C. decrease cost of goods sold.

D. increase sales.

56.The net effect of the entries to recognize the receipt of a previously written-off account under the allowance method is to:   

A. have no effect on total assets or total equity.

B. increase total equity only.

C. decrease total assets.

D. increase total assets and total equity.

On December 31, 2012, the Lindley Corporation estimated that 3% of its credit sales of $225,000 would be uncollectible. Lindley uses the allowance method of accounting for uncollectible accounts. In February 2013, one of Lindley’s customers failed to pay his $2,100 account and was written off. On April 4, 2013, this customer paid Lindley the $2,100.

 

57.Which of the following answers correctly shows the effect of the December 31, 2012 adjusting entry for uncollectible accounts on the financial statements of the Lindley Corporation?     

A. Option A

B. Option B

C. Option C

D. Option D

58.Which of the following answers correctly states the effect of the February 2013 entry to write off the customer’s account?     

A. Option A

B. Option B

C. Option C

D. Option D

59.Which of the following answers correctly states the effect of recording the reestablishment of the receivable on April 4, 2013?     

A. Option A

B. Option B

C. Option C

D. Option D

60.Which of the following answers correctly states the effect of recording the collection of the reestablished receivable on April 4, 2014?     

A. Option A

B. Option B

C. Option C

D. Option D

61.Assume that the Lindley Corporation uses the direct write-off method of accounting for uncollectible accounts. Which of the following answers correctly describes the effect of the write-off of the customer’s account on Lindley’s financial statements?     

A. Option A

B. Option B

C. Option C

D. Option D

 

 

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