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An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

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Question 1;An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a;credit to Allowance for Doubtful Accounts for $14,000.;12;14;debit to Bad Debt Expense for $12,900.;Question 2;A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of;$15,040.;$13,000.;$15,000.;$17,000.;Question 3;The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is;$59,000.;$50,750.;$50,000.;54,500.;uestion 4;Reck Company receives a $15,000, 3-month, 8% promissory note from Fey Company in settlement of an open accounts receivable. What entry will Reck Company make upon receiving the note?;Notes Receivable;15,000;Interest Receivable;300;Accounts Receivable?Fey Company;15,000;Interest Revenue;300;Notes Receivable;15,000;Accounts Receivable?Fey Company;15,000;Notes Receivable;15,300;Accounts Receivable?Fey Company;15,000;Interest Revenue;300;Notes Receivable;15,300;Accounts Receivable?Fey Company;15,300;Question 5;Gagner Clinic purchases land for $175,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?;$157,200;$175,000;$179,700;$157,500;Question 6;Carey Company buys land for $50,000 on 12/31/13. As of 3/31/14, the land has appreciated in value to $50,700. On 12/31/14, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2014?;$1,100;$0;$1,800;$700;Question 7;Engler Company purchases a new delivery truck for $55,000. The sales taxes are $4,000. The logo of the company is painted on the side of the truck for $1,600. The truck license is $160. The truck undergoes safety testing for $290. What does Engler record as the cost of the new truck?;$60,890

 

Paper#76286 | Written in 18-Jul-2015

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