Question

er 31, before adjusting and closing the accounts had occurred, the Allowance for Doubful Accounts of Mube Corporation showed a debit balance of $2,000. An aging of the accounts receivable indicated the amount probably uncollectible to these circumstances, a year-end adjusting entry for estimated bad debts would include a: a. Debit to Bad Debts Expense of $12,000 b. Debit to the Allowance for Doubtfiul Accounts for $2,000 c. Credit to the Allowance for Doubtful Accounts for $8,000 d. Debit to Bad Debts Expense of $10,000 c. None of the above be $10,000. Under 40. Kirtan Company uses a periodic inventory system. The beginning inventory was $20,000, purchases amounted to $110,000, sales totale S215,000, and the year-end inventory was $25,000. The cost of goods sold must have been: a. $100,000 b. $105,000 c. $110,000 d. Some other amount An NSF check returned by the bank should be entered in the depositor's accounting records by a debit to: a. b. c. d. e. 41. Accounts Payable Accounts Receivable An expense account Cash None of the above 42. In preparing a bank reconciliation, a debit memo for a safe deposit box rental shown on the bank statement should be a. Deducted from the balance per the depositor's records b. Added to the balance per the bank statement c. Deducted from the balance per the bank statement d. Added to the balance per the depositor's records e. None of the above

Answer 1

39). Tha answer is "A"

A. Debit to Bad Debts Expense of $12000.

40). The Answer is "B"

B. $105000

Cost of Goods Sold = Beginning Inventory + Purchasees - Ending Inventory

= $20000 + $110000 - $25000

= $105000

41). The Answer is "B"

B. Accounts Receivable