Question

accounts in the uncollectible accounts Tilden Co. hacd credit sales in the amount of $470,000, and it had uncollectibie inount of $4,700. Based on last year, what would the percent of estimated 10% be this year? b.4% 1% 4.7% 28. Which of the following is a method of accounting for uncollectible accounts? reserve method allowance method allocation method accounts receivable method b. d. 29. The expense associated with an uncollectible account is recognized when it has been det that a customer will not pay the amount owed under the reserve method. allowance method. allocation method direct write-off method. b. d. 30. Dude Ranch adjusting for estimated losses from ircle estimates its uncollectible accounts at 15% of its credit sales of $825,000, when uncollectible accounts, the debit to Bad Debt Expense is a. $82,500. b. $123,750. C. d. $8,250. $12,375. 31. The allowance for bad debts account is contra to which of the following accounts? a. Revenue cashnts Rece Accounts Receivable Bad Debt Expense C. d. 32. After aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400. If the accounts receivable total $130,000, the net receivables would be a. $128,800. b. $129,600. C. $128,400. d. $128,000. 33. Under the allowance method, to write off an account that has been determined to be uncollectible, debiting Accounts Receivable and crediting Allowance for Bad Debts. debiting Bad Debt Expense and crediting Allowance for Bad Debts. debiting Allowance for Bad Debts and crediting Bad Debt Expense. debiting Allowance for Bad Debts and crediting Accounts Receivable. the entry would include a. b. c. d.

Answer 1

28.(b) Allowance method.

29.(d). Direct write-off method

30.(c) $12,375 ($825,000 ×1.5/100)

31.(c) Accounts receivable

33.(d) Debiting Allowance for bad debts and crediting Accounts Receivable.