Question

14. On December 1. On December 31, 2017. James Company has an accounts receivable balance of $324,000 Beton any year-end adjustments. The Allowance for Doubtful Accounts has a $1,100 credit balance The company prepares the following aging schedule for accounts receivables Total Balance $324,000 Percent uncollectible 1-30 days $157,000 1% 31-60 days $89,000 2% 61-90 days $51,000 4% over 90 days $27,000 21% What is the Uncollectible-Account Expense at December 31, 2017? A) $1,570 B) $9,960 C) $11,060 D) $12,160 15. Under the allowance method, the entry to write off a $1,425 uncollectible account includes A) a debit to Accounts Receivable for $1,425 B) a credit to Bad Debt Expense for $1,425 C) a credit to Allowance for Uncollectible Accounts for $1,425 D) a debit to Allowance for Uncollectible Accounts for $1,425 16. The adjusting entry to record salaries owed to employees but not paid until the next accounting period involves a credit to: A) Salary Expense B) Unearned Salaries C) Salary Payable D) Deferred Salary

Answer 1

		1-30 days	31-60 days	61to90days	over 90 days	total
14)	Total bal
	324,000	157,000	89,000	51,000	27,000
	percent	1%	2%	4%	21%
	amount	1570	1780	2040	5670	11060
	uncollectible expense = 11060-1100
			9960
	answer)	option b
		9960
15)	journal entry
	allowance for doubtful accounts			DR
	accounts receivable			CR
	answer)
	option d
	a debit to Allowance for uncollectible accounts for $1,425
16)	journal entry
	Salary expense			DR
	salary payable			CR
	answer)
	option c
	Salary payable