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Accounting homework




Question;1. Balances at year-endFrom the balance sheet 2013 2012Accounts Receivable $1,560,200 $1,210,920Allowance for doubtful accounts $79,000 $64,600Murray recorded no write offs or recoveries during 2013. what was the amount of bad debt expense reported in 2013?2. IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5.5% interest. IBM would recognize:(Choices) Unearned Revenue, Notes Receivable, note payable, accounts payable3. A company lends its supplier $150,000 for 3 years at a 6% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for(Choices) $27000, $4500, $9000, $135004. Company A lends $100,000 to company B. The interest on the loan is reported(Choices) as a revenue to company A and an expense to Company Bas an expense to company A and a revenue to Company Bas an asset to Company A and a revenue to Company Bas a liability to Company A and an asset to Company B5. The Splendor in the Grass Corporation provides $6000 worth of lawn care on account during the month. Experiences suggests that about 2 % of net credit sales will not be collected. According to the revenue recognition principle and the matching principle, the company should(Choices) wait until the accounts are determined to be uncollectible before making an entry for bad debt expenserecord an estimate of bad debt expense in the same period as the lawn care is providednot report the sales revenue until it collects paymentincrease the value of its liabilities with an adjustment6. When a company that uses the allowance method writes off an uncollectible account(choices) total assets, revenues, and expense remain the sametotal assets decreasetotal liabilities increasetotal expenses increase and total revenues increase7. On April 1, 2013 a company lends a corporate customer $80,000 at 7% interest. The amount of interest revenue that should be recorded for the year ended December 31, 2013 is:(Choices) $5600, $0, $4200, $14008. The amount of uncollectible accounts at the end of the year is estimated to be $25000 using the aging of accounts receivable method. The balance in the Allowance for Doubtful Accounts account is an $8000 DEBIT before adjustment. Assuming no accounts are written off during the period. What will be the amount of bad debt expense for the period?(Choices) $33,000, $8000, $17000, $25000


Paper#42027 | Written in 18-Jul-2015

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