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Acc 221MCQ's-The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts..

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Question;Quiz III: Ch. 7-9Started: Oct 28 at 9:18pmQuiz InstructionsQuestion 1 4 ptsdebit Bad Debt Expense, credit Accounts Receivabledebit Sales Returns and Allowance, credit Accounts Receivabledebit Bad Debt Expense, credit Allowance for Doubtful Accountsdebit Allowance for Doubtful Accounts, credit Accounts ReceivableThe Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balancehas been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:Question 2 4 pts$30,000$460,000$430,000$490,000After 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 hasa balance of $30,000. What is the net realizable value of the accounts receivable?Question 3 4 ptsAsset, debitContra asset, debitContra asset, creditAsset, creditWhat is the type of account and normal balance of Allowance for Doubtful Accounts?Question 4 4 ptsBad Debt Expense 15,000 Allowance for Doubtful Accounts 15,000Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An agingof accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if theAllowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?Quiz: Quiz III: Ch. 7-9 Page 1 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014Bad Debt Expense 20,000 Allowance for Doubtful Accounts 20,000Bad Debt Expense 13,000 Allowance for Doubtful Accounts 13,000Question 5 4 ptscredit to Allowance for Doubtful Accounts for $3,000.debit to Bad Debt Expense for $1,800.debit to Bad Debt Expense for $2,000.debit to Bad Debt Expense for $2,200.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 creditbalance, the adjustment to record the bad debt expense for the period will require aQuestion 6 4 pts$24,000cannot be determined$24,500$23,500Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 4% of net creditsales. If net credit sales are $600,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts isQuestion 7 4 pts$9,800$10,200$10,000$11,200A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note isQuestion 8 4 ptsdebit Notes Receivable, $6,060, credit Accounts Receivable, $6,060debit Accounts Receivable, $6,120, credit Notes Receivable, $6,000, Credit Interest Revenue, $120debit Accounts Receivable, $6,120, credit Notes Receivable, $6,000, Credit Interest Receivable, $120debit Cash, $6,120, credit Notes Receivable, $6,120A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event isQuiz: Quiz III: Ch. 7-9 Page 2 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014Question 9 4 ptsNotes Receivable 6,090 Accounts Receivable?Dame Company 6,090Notes Receivable 6,090 Accounts Receivable?Dame Company 6,000 Interest Revenue 90Notes Receivable 6,000 Accounts Receivable?Dame Company 6,000Notes Receivable 6,000Interest Revenue 90 Accounts Receivable?Dame Company 6,000 Interest Receivable 90Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will PaperCompany make upon receiving the note?Question 10 4 ptsinstallation costsall are correcttesting costs prior to placing the equipment into productiontransportation costsWhich of the following should be included in the acquisition cost of a piece of equipment?Question 11 4 ptsinsurance costs during constructioncost of removing the demolished building existing on the land when it was purchasedcost of paving parking lotcost of repairing vandalism damage during constructionWhich of the following is included in the cost of constructing a building?Question 12 4 pts$102,000$ 99,000$107,000$109,000A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $5,000, and special acquisition fees of $2,000, wouldhave a cost basis ofQuestion 13 4 ptsQuiz: Quiz III: Ch. 7-9 Page 3 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014tune-up for a company truckreplacing an engine in a company carcleaning the carpet in the front roomreplacing all burned-out light bulbs in the factoryWhich of the following below is an example of a capital expenditure?Question 14 4 pts$26,667$15,000$5,000$25,000A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-ofproductionmethod. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?Question 15 4 pts$32,500$33,000$24,000$35,750Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by thestraight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?Question 16 4 pts$16,667$18,750$17,500$37,500A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation forthe second full year, using the double declining-balance method?Question 17 4 ptsGain of $55,000On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of$185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $55,000. What is theamount of the gain or loss on this transaction?Quiz: Quiz III: Ch. 7-9 Page 4 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014No gain or lossGain of $25,000Cannot be determinedQuestion 18 4 ptsall of the abovepatentsgoodwilltrademarksWhich intangible assets are amortized over their useful life?Question 19 4 ptsfranchisetrademarkcopyrightpatentThe exclusive right to use a certain name or symbol is called aQuestion 20 4 ptsinformation and communicationmonitoringbehavior analysisrisk assessmentWhich one of the following below is not an element of internal control?Question 21 4 ptsseparating responsibilities for related operationsmonitoringproofs and security measuresrisk assessmentWhen a firm uses internal auditors, it is adhering to which one of the following internal control elements?Question 22 4 ptsQuiz: Quiz III: Ch. 7-9 Page 5 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014deduction to the balance per bank statementaddition to the balance per bank statementaddition to the balance per company's recordsdeduction to the balance per company's recordsA check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)Question 23 4 ptsdebit Miscellaneous Administrative Expense, credit Cashdebit Cash, credit Other Incomedebit Accounts Payable, credit Cashdebit Cash, credit Accounts PayableAccompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?Question 24 4 ptsaddition to the balance per company's recordsdeduction from the balance per bank statementaddition to the balance per bank statementdeduction from the balance per company's recordsThe amount of the outstanding checks is included on the bank reconciliation as a(n)Question 25 4 pts$3,120$1,320$5,280$2,970Meredith Company gathered the following reconciling information in preparing its May bank reconciliation:Cash balance per books, 5/31 $2,500Deposits in transit 150Notes receivable and interest collected by bank 650Bank charge for check printing 40Outstanding checks 1,800NSF check 140The adjusted cash balance per books on May 31 isQuiz: Quiz III: Ch. 7-9 Page 6 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014Quiz saved at 9:41pmQuiz: Quiz III: Ch. 7-9 Page 7 of 7https://nmsu.instructure.com/courses/885327/quizzes/1010469/take 10/28/2014

 

Paper#37694 | Written in 18-Jul-2015

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