Question 1

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

Accepted Answer

A)   Uncollectible Accounts Receivable
B)   Accounts Receivable
C)   Allowance for Doubtful Accounts
D)   Bad Debts ExpenseE) A) and B)
F) All of the above

Question 2

The party promising to pay a note at maturity is the maker.

Accepted Answer

A) True 
 B)False

Question 3

Given the following information, compute Accounts Receivable Turnover:

Accepted Answer

A)   6.75
B)   7.5
C)   6.13
D)   6.82E) All of the above
F) A) and B)

Question 4

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Accepted Answer

A)   affects only income statement accounts.
B)   is not an acceptable practice.
C)   affects only balance sheet accounts.
D)   affects both balance sheet and income statement accounts.E) A) and C)
F) B) and D)

Question 5

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

Accepted Answer

A)   $30,000
B)   $430,000
C)   $460,000
D)   $490,000E) All of the above
F) None of the above

Question 6

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $2,000. If Allowance for Doubtful Accounts has a $200 credit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)   debit to Bad Debt Expense for $2,200.
B)   debit to Bad Debt Expense for $2,000.
C)   debit to Bad Debt Expense for $1,800.
D)   credit to Allowance for Doubtful Accounts for $3,000.E) All of the above
F) B) and C)

Question 7

Two methods of accounting for uncollectible accounts are the

Accepted Answer

A)   direct write-off method and the allowance method.
B)   allowance method and the accrual method.
C)   allowance method and the net realizable method.
D)   direct write-off method and the accrual method.E) C) and D)
F) None of the above

Exam 8: Receivables

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

Correct Answer
verified

Given the following information, compute Accounts Receivable Turnover:

Correct Answer
verified

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Correct Answer
verified

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $2,000. If Allowance for Doubtful Accounts has a $200 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct Answer
verified

Two methods of accounting for uncollectible accounts are the

Correct Answer
verified

The party promising to pay a note at maturity is the maker.

Correct Answer
verified

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

Correct Answer
verified

Exam 8: Receivables

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

Correct AnswerverifiedShow Answer

Given the following information, compute Accounts Receivable Turnover:

Correct AnswerverifiedShow Answer

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Correct AnswerverifiedShow Answer

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $2,000. If Allowance for Doubtful Accounts has a $200 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct AnswerverifiedShow Answer

Two methods of accounting for uncollectible accounts are the

Correct AnswerverifiedShow Answer

The party promising to pay a note at maturity is the maker.

Correct AnswerverifiedShow Answer

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified