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Accounting_Multiple Choices 1-10

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Question;Multiple Choices 1-10Please hi light the correct answers.1. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be adebit to Loss on Credit Sales Revenue and a credit to Accounts Receivable.debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts2. A company that receives an interest bearing note receivable willdebit Notes Receivable for the maturity value of the note.credit Notes Receivable for the maturity value of the note.debit Notes Receivable for the face value of the note.credit Notes Receivable for the face value of the note.3. Writing off an uncollectible account under the allowance method requires a debit toBad Debt Expense.Uncollectible Accounts Expense.Allowance for Doubtful Accounts.Accounts Receivable.4. Which of the following would be considered as an unlikely occurrence?Manufacturer offers a cash discount to a wholesaler.Wholesaler offers a cash discount to a retailer.Retailer offers a cash discount to a customer.All of these are standard practices.5. When a note is accepted to settle an open account, Notes Receivable is debited for the note'sface value plus interest.net realizable value.face value.maturity value.6. T'Pol Furniture factors $900,000 of receivables to Trip Factors, Inc. Trip Factors assesses a 2% service charge on the amount of receivables sold. T'Pol Furniture factors its receivables regularly with Trip Factors. What journal entry does T'Pol make when factoring these receivables?Cash882,000Accounts Receivable882,000Cash882,000Service Charge Expense18,000Accounts Receivable900,000Cash882,000Loss on Sale of Receivables18,000Accounts Receivable900,000Cash900,000Accounts Receivable882,000Gain on Sale of Receivables18,0007. On November 1, Gentle Company received a $3,000, 6%, three-month note receivable. The cash to be received by Gentle Company when the note becomes due is:$3,000.$3,030.$3,045.$3,180.8. The average collection period for accounts receivable is computed by dividing 365 days byaverage accounts receivable.accounts receivable turnover.ending accounts receivable.net credit sales.9. A 90-day note dated May 14 has a maturity date ofAugust 14.August 13.August 12.August 1510. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debt expense for that period?$13,000$15,000$2,000$17,000

 

Paper#41674 | Written in 18-Jul-2015

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