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122.
Under the allowance method, when a receivable that had been previously written off is
collected:
123.
When the account Allowance for Doubtful Accounts is used, writing off of an uncollectible
accounts receivable will:
124.
Accounts receivable are classified as current assets:
125.
Uncollectible accounts expense:
126.
The Allowance for Doubtful Accounts represents:
127.
When determining the uncollectible accounts expense in computing taxable income,
income tax regulations:
128.
The aging of the accounts receivable approach to estimating uncollectible accounts does
not
:
129.
If a company uses a percentage of net sales in computing the amount of uncollectible
accounts expense:
130.
Randall, Inc. uses the allowance method supported by an aging of its accounts receivable
to recognize uncollectible accounts expense in its financial statements. What method of
recognizing this expense does Randall use in its income tax return?
131.
The direct write-off method of recognizing uncollectible accounts expense:
132.
Joe Costello handles cash receipts from customers and also has responsibility for issuing
credit memoranda, writing off uncollectible accounts, and maintaining the accounts
receivable records. When customers pay their accounts, Costello occasionally issues a
credit memorandum and steals the cash received from the customer. This fraud should
come to light if an employee other than Costello:
133.
Shrek Cyclery sells a bicycle to W. O'Connor, a customer who uses Empress Charge (a
national credit card, but not issued by a bank). In recording this sale, Shrek Cyclery should
record:
134.
The Kansas Company makes credit sales to customers who use bank credit cards (such
as Visa or MasterCard) as well as to customers who use non-bank credit cards (such as
American Express or Diner's Club). In this situation:
135.
Sales to customers using bank credit cards, such as Visa or MasterCard, are recorded as:
136.
Under the allowance method, when a receivable that had been previously written off is
collected:
137.
Which of the following activities affects net income, but has no immediate impact upon
cash flows?
138.
Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of
$19,500 just before writing off as worthless an account receivable from Burton Company
of $1,300. The net realizable value of the accounts receivable before and after the write-
off were:
139.
Bert had accounts receivable of $280,000 and an allowance for doubtful accounts of
$10,800 just before writing off as worthless an account receivable from Ernie Company of
$1,600. After writing off this receivable what would be the balance in Bert's Allowance for
Doubtful Accounts?
140.
At December 31, before adjusting and closing the accounts had occurred, the Allowance
for Doubtful Accounts of Seaboard Corporation showed a debit balance of $3,200. An
aging of the accounts receivable indicated the amount probably uncollectible to be $2,100.
Under these circumstances, a year-end adjusting entry for uncollectible accounts expense
would include a:
141.
Kennedy Company uses the balance sheet approach in estimating uncollectible accounts
expense. The company prepares an adjusting entry to recognize this expense at the end of
each month. During the month of July, the company wrote-off a $3,500 receivable and
made no recoveries of previous write-offs. Following the adjusting entry for July, the credit
balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1.
What amount of uncollectible account expense was recorded for July?
142.
Oceanside Company uses the balance sheet approach in estimating uncollectible accounts
expense. Its Allowance for Doubtful Accounts has a $1,200 credit balance prior to
adjusting entries. It has just completed an aging analysis of accounts receivable at
December 31, 2015. This analysis disclosed the following information:
What is the appropriate balance for Oceanside's Allowance for Doubtful Accounts at
December 31, 2015?
7-74
143.
At the start of the current year, Minuteman Corporation had a credit balance in the
Allowance for Doubtful Accounts of $1,800. During the year a monthly provision of 2% of
sales was made for uncollectible accounts. Sales for the year were $600,000, and $5,600
of accounts receivable were written off as worthless. No recoveries of accounts previously
written off were made during the year. The year-end financial statements should show:
Dynamic, Inc. had credit sales of $675,000 for March. Accounts receivable of $6,000 were
determined to be worthless and were written off during March. Accounts receivable total
$575,000 at March 31. Management feels that based on past experience, approximately
2% of net credit sales will prove to be uncollectible.
144.
Refer to the information above. Assuming Dynamic, Inc. uses the direct write-off method
of accounting for uncollectible accounts, uncollectible accounts expense for March is:
145.
Refer to the information above. Assuming Dynamic, Inc. uses the income statement
approach (an allowance method) to account for uncollectible accounts, uncollectible
accounts expense for March is:
At the end of January, the unadjusted trial balance of Windsor, Inc. included the following
accounts:
146.
Refer to the information above. Windsor uses the balance sheet approach in estimating
uncollectible accounts expense, and aging the accounts receivable indicates the estimated
uncollectible portion to be $7,400. What is the amount of uncollectible accounts expense
recognized in Windsor's income statement for January?
147.
Refer to the information above. Windsor uses the balance sheet approach in estimating
uncollectible accounts expense, and aging the accounts receivable indicates the estimated
uncollectible portion to be $7,400. The net realizable value of Windsor's accounts
receivable in the January 31 balance sheet is:
148.
Refer to the information above. Windsor uses the income statement approach in
estimating uncollectible accounts expense, and uncollectible accounts expense is
estimated to be 2% of credit sales. What is the amount of uncollectible accounts expense
recognized in Windsor's income statement for January?
149.
Refer to the information above. Windsor uses the income statement approach in
estimating uncollectible accounts expense, and uncollectible accounts expense is
estimated to be 2% of credit sales. The net realizable value of Windsor's accounts
receivable in the January 31 balance sheet is:
7-80
150.
At the beginning of the year, Robert Company's Allowance for Doubtful Accounts had a
$3,200 credit balance. During January, a provision of 2% of sales was made for
uncollectible accounts expense. During January, sales totaled $350,000, and $2,900 of
accounts receivable were written off as worthless. No recoveries of accounts previously
written off were made during the month. Robert's financial statements for January show:
At the end of March, the unadjusted trial balance of Tutor, Inc. included the following
accounts:
