36.
Flyer Company has provided the following information prior to any year–end bad debt
adjustment:
• Cash sales, $150,000
• Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• Accounts receivable, $110,000
• Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts
receivable is estimated to be uncollectible. How much is bad debt expense?
37.
Flyer Company has provided the following information prior to any year-end bad debt
adjustment:
• Cash sales, $150,000
• Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• Accounts receivable, $110,000
• Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts
receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful
accounts after bad debt expense is recorded?
38.
Flyer Company has provided the following information prior to any year-end bad debt
adjustment:
• Cash sales, $150,000
• Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• Accounts receivable, $110,000
• Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been
uncollectible. How much is Flyer’s bad debt expense?
39.
Flyer Company has provided the following information prior to any year-end bad debt
adjustment:
• Cash sales, $150,000
• Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• Accounts receivable, $110,000
• Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been
uncollectible. What is the balance in the allowance for doubtful accounts after bad debt
expense is recorded?
40.
Which of the following is correct when bad debt expense is recorded at year–end?
41.
Which of the following statements is false?
42.
Which of the following journal entries correctly records bad debt expense?
43.
Which of the following journal entries correctly records the write off of an uncollectible
account receivable when using the allowance method?
44.
The CHS Company has provided the following information:
• Accounts receivable written-off as uncollectible during the year amounted to $11,500.
• The accounts receivable balance at the beginning of the year was $150,000.
• The accounts receivable balance at the end of the year was $210,000.
• The allowance for doubtful accounts balance at the beginning of the year was $14,000.
• The allowance for doubtful accounts balance at the end of the year after the recording of
bad debt expense was $12,900.
• Credit sales during the year totaled $900,000.
How much was CHS Company’s bad debt expense?
45.
The CHS Company has provided the following information:
• Accounts receivable written-off as uncollectible during the year amounted to $11,500.
• The accounts receivable balance at the beginning of the year was $150,000.
• The accounts receivable balance at the end of the year was $210,000.
• The allowance for doubtful accounts balance at the beginning of the year was $14,000.
• The allowance for doubtful accounts balance at the end of the year after the recording of
bad debt expense was $12,900.
• Credit sales during the year totaled $900,000.
How much cash was received from collections of accounts receivable?
46.
Superior Company has provided you with the following information before any year-end
adjustments:
Net credit sales are $120,000.
Historical percentage of credit losses is 2%.
Allowance for doubtful accounts has a credit balance of $300.
Accounts receivables ending balance is $47,000.
What is the estimated bad debt expense using the percentage of credit sales method?
47.
Which of the following statements is correct?
48.
Clark Company estimated the net realizable value of its accounts receivable as of December
31, 2016, to be $165,000, based on an aging schedule of accounts receivable. Clark has also
provided the following information:
• The accounts receivable balance on December 31, 2016 was $175,000.
• Uncollectible accounts receivable written off during 2016 totaled $12,000.
• The allowance for doubtful accounts balance on January 1, 2016 was $15,000.
How much is Clark’s 2016 bad debt expense?
49.
What would be incorrect about reporting accounts receivable in the balance sheet?
50.
Which of the following statements correctly describes the effect of recording the collection of
a $10,000 account receivable for which a 2% sales discount was recorded at the time of
collection?
51.
Which of the following journal entries correctly records the collection of an account receivable
for which a 1% sales discount was recorded at the time of collection?
52.
Which of the following correctly describes the effect of a journal entry involving the recording
of a sales return?
53.
Which of the following correctly describes the effect of a sales discount?
54.
Which of the following does not correctly describe the effect of a credit card discount?
55.
Which of the following does not correctly describe the effect of a journal entry involving the
recording of a credit card discount?
56.
Which of the following correctly describes credit terms of 2/10, n/30?
57.
A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on
September 1. The customer received the bill on September 13 and mailed a $5,000 check on
September 30. Discount Paper Supply received the check on October 4. On which of the
following dates should Discount Paper Supply record sales revenue?
58.
When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer’s check is
received on May 19, which of the following is true about the May 19 journal entry?
59.
A company had the following partial list of account balances at year–end:
Sales Returns and Allowances
$1,000
Accounts Receivable
38,000
Sales Discounts
2,100
Sales Revenue
95,000
Allowance for Doubtful Accounts
1,200
How much is net sales revenue?