Homework Answers
| 22 | Receivables means the amount that due from individuals or companies | ||||
| So Option A is answer | |||||
| 23 | Receivables are claims to be expected to be collected in cash | ||||
| So Option B is answer | |||||
| 24 | Accounts Receivables are shown on the balance sheet at cash relizable value(net of allowance for bad debts) | ||||
| So Option C is answer | |||||
| 25 | Writing off an uncollectible account shall effect both the balance sheet and Income statement | ||||
| So Option B is answer | |||||
| 26 | Net amount of cash expected to receive from receivables = Cash relizable value | ||||
| So Option A is answer | |||||
| 27 | A debit balance in allowance for doubtful account shall mean that actual bad debt written offs | ||||
| are more than previous provisions for bad debts | |||||
| So Option B is answer | |||||
| 28 | The Bad debt expenses shall be $8,000 | ||||
| So Option B is answer | |||||
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22. The term "receivables" refers to a. amounts due from individuals or companies. b. merchandise to...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense....
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $400000 and credit sales are $1600000. Management estimates that 6 % of accounts receivable will be uncollectible. What adjusting entry will Blue Spruce Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4000 before adjustment? Bad Debt Expense 16000 Accounts Receivable 16000 Bad Debt Expense 20000 Allowance for Doubtful Accounts 20000 Bad Debt Expense 8000...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22.000 b. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 c....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets. b. increases the cash realizable value of accounts receivable. c appears under the heading "Other Assets." d. is deducted from accounts receivable. or a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it overstates liabilities on the balance sheet. B) it violates the matching principle. C) direct write-offs would be immaterial. D) it is not allowed for tax reasons....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets. b. increases the cash realizable value of accounts receivable. c appears under the heading "Other Assets." d. is deducted from accounts receivable. or a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it overstates liabilities on the balance sheet. B) it violates the matching principle. C) direct write-offs would be immaterial. D) it is not allowed for tax reasons....
Exam 1 18. Which of the following would require a compound joumal entry? b. c. d...
Exam 1 18. Which of the following would require a compound joumal entry? b. c. d To record merchandise returned that was previously purchased on account To record sales on accou. To record purchases of eventory when a discount is offered for prompt payment. To record collection of accounts receivable when a cash discount is taken 19. Under the allowance method, writing of an uncollectible account affects only balance sheet accounts b. affects both balance sheet and income statement accounts....
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,230,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $19,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $760,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,420,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $30,100. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $990,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and sales for the year total $4,460,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $45,900. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $400000 and credit sales are $1600000. Management estimates that 6 % of accounts receivable will be uncollectible. What adjusting entry will Blue Spruce Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4000 before adjustment? Bad Debt Expense 16000 Accounts Receivable 16000 Bad Debt Expense 20000 Allowance for Doubtful Accounts 20000 Bad Debt Expense 8000...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22.000 b. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 c....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets. b. increases the cash realizable value of accounts receivable. c appears under the heading "Other Assets." d. is deducted from accounts receivable. or a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it overstates liabilities on the balance sheet. B) it violates the matching principle. C) direct write-offs would be immaterial. D) it is not allowed for tax reasons....
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets. b. increases the cash realizable value of accounts receivable. c appears under the heading "Other Assets." d. is deducted from accounts receivable. or a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it overstates liabilities on the balance sheet. B) it violates the matching principle. C) direct write-offs would be immaterial. D) it is not allowed for tax reasons....
Exam 1 18. Which of the following would require a compound joumal entry? b. c. d To record merchandise returned that was previously purchased on account To record sales on accou. To record purchases of eventory when a discount is offered for prompt payment. To record collection of accounts receivable when a cash discount is taken 19. Under the allowance method, writing of an uncollectible account affects only balance sheet accounts b. affects both balance sheet and income statement accounts....
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,230,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $19,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $990,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and sales for the year total $4,460,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $45,900. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $...
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