Question
In: Accounting
1. An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,500. If...
1. An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,500. If there is a credit balance in the allowance account of $3,500 prior to adjustment, the adjustment amount is $6,000.
True
False
2. The maturity value of a $5,000 note is $5,250. If $100 of the interest has been accrued prior to maturity, the entry at maturity should include a credit to Interest Income for $150.
True
False
3. Allowance for Doubtful Accounts is an expense account, and its normal balance is debit.
True
False
4. The principal amount of a 12%, 3-year, note receivable is $300,000 and is dated January 1, 2017. The interest income to be recognized on December 31, 2017 is $12,000.
True
False
5. When a non-current asset is disposed of before full depreciation, a loss occurs.
True
False
6. Cost of goods sold is the difference between cost of goods available for sale and ending inventory.
True
False
Solutions
ekkarill92 answered 1 month agoRelated Solutions
Aging of Receivables; estimating allowance for doubtful accounts Aging of receivables; estimating allowance for doubtful accounts...
Aging of Receivables; estimating allowance for doubtful
accounts
Aging of receivables; estimating allowance for doubtful
accounts
Fishy Fish company supplies flies and fishing gear to sporting
goods stores and outfitters throughout the western United States.
The accounts receivable clerk for Fishy Fish prepared the following
partially completed aging of receivables schedule as of the end of
business on December 31, 2015:
A
B
C
D
E
F
G
H
1
Not past Due
Days Past Due
2
3
Customer
Balance...
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of...
Warner Company’s year-end unadjusted trial balance shows
accounts receivable of $108,000, allowance for doubtful accounts of
$690 (credit), and sales of $370,000. Uncollectibles are estimated
to be 1.50% of accounts receivable.
1. Prepare the December 31 year-end adjusting
entry for uncollectibles.
2. What amount would have been used in the
year-end adjusting entry if the allowance account had a year-end
unadjusted debit balance of $750?
The allowance for doubtful accounts has a debit balance of $1,000 at the end of the...
The allowance for doubtful accounts has a debit balance of
$1,000 at the end of the year (before adjustment), and
uncollectible accounts expense is estimated at $10,000. If accounts
receivable are $700,000, the amount of the adjusting entry to
record the allowance for doubtful accounts using the aging of
receivables method is:
On January 1, Henry Company's allowance for doubtful accounts had a credit balance of $44,000. The...
On January 1, Henry Company's allowance for doubtful accounts
had a credit balance of $44,000. The balance in the Accounts
Receivable account on that date was $185,000. On January 2, prior
to any credit sales, a $14,500 account from Walco Company was
deemed to be uncollectible and written off.
Please show work and calculate:
Compute the net realizable value of Henry’s receivables on
January 1.
What is the balance in the Accounts Receivable account
immediately following the write-off of the...
1)The allowance for doubtful accounts is reported as a contra-asset on the balance sheet Select one:...
1)The allowance for doubtful accounts is reported as a
contra-asset on the balance sheet
Select one:
True
False
2)When goods are shipped FOB destination, the revenue from the
sale is recognized on the shipment date.
Select one:
True
False
3)Tangible long-lived productive assets differ from intangible
long-lived productive assets in that tangible assets have physical
substance whereas intangible assets have no physical substance.
Select one:
True
False
4)Treasury stock is a corporation's own stock that was issued
and then repurchased,...
5. Black Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $21,000. The...
5.
Black Corporation had a 1/1/20 balance in the Allowance for
Doubtful Accounts of $21,000. The balance in Accounts Receivable
was $420,000 at 1/1 and $504,000 at 12/31. At 12/31/20, Black
estimates that 5% of accounts receivable will prove to be
uncollectible. What should Black report as its Allowance
for Doubtful Accounts at 12/31/20?
6.
David Company uses the gross method to record sales made on credit.
On June 10, 2020, it sold goods worth $250,000 with terms 2/10,
n/30...
One might infer from a debit balance in Allowance for Doubtful Accounts that
One might infer from a debit balance in Allowance for Doubtful Accounts that
(a) a posting error has been made.
(b) more accounts have been written off than had been estimated would be uncollectible.
(c) the percentage of receivables basis is being used.
(d) bad debts expense has been overestimated.
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year...
Allowance for Doubtful Accounts has a credit balance of $500 at
the end of the year (before adjustment), and bad debt expense is
estimated at 2% of credit sales. If credit sales are $848,200, the
amount of the adjusting entry to record the estimated uncollectible
accounts receivable
In the normal operation of business, you receive a check from a
customer and deposit it into your checking account. With your bank
statement, you are advised that this check for $775 is...
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the account
write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the
account write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
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