2-allowance for Doubtful Accounts has a credit balance of $2,100 at the end of t
ID: 2380996 • Letter: 2
Question
2-allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for Bad Debt Expense?
a. debit Allowance for Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600
b. debit Bad Debt Expense $21,800; credit Allowance for Doubtful Accounts, $21,800
c. debit Allowance for Doubtful Accounts, $21,800; credit Bad Debt Expense, $21,800
d. debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600
5- Use the following information to answer the following questions.
The Boxwood Company sells blankets for $60 each. The following was taken from
the inventory records during May.
Date
Product Z Units Cost
May 3 Purchase 5 $20
May 10 Sale 3
May 17 Purchase 10 $24
May 20 Sale 6
May 23 Sale 3
May 30 Purchase 10 $30
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method.
a. $144
b. $180
c. $136
d. $120
7-Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. What entry is required in the company's accounts?
a. debit Cash; credit Sales
b. debit Sales; credit Cash
c. debit Accounts Receivable; credit Cash
d. debit Cash; credit Accounts Receivable
8- Given the following information, compute Accounts Receivable Turnover:
gross sales 150000
net sales 135000
accounts recievable (beginning of year) 18000
accounts recievable (end of year) 22000
a 7.5
b 6.13
c. 6.75
d. 6.82
9- If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.
ITEM IVENTTORY QUANTITY UNIT COST PRICE UNIT MARKET PRICE
Product C 420 16 5
Product D 370 12 14
a. $7,280
b. $6,960
c. $7,700
d. $6,540
10-
The following units of an inventory item were available for sale during the year:
Beginning Inventory 10 units at $55
First Purchase 25 units at 60
Second Purchase 30 units at 65
Third Purchase 15 units at 70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using average cost is:
a. $1,375
b. $1,263
c. $1,353
d. $1,150
11- On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $310,000 with an accumulated depreciation of $260,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal.
a. Equipment Cr. $310,000
b. Loss on Disposal of Asset Dr. $260,000
c. Gain on Disposal of Asset Cr. $50,000
d. Accumulated Depreciation Dr. $310,000
12- Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation.
a. $13,200
b. $19,200
c. $ 9,000
d. $ 9,600
17- Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2010, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no Sales Returns or Sales Discounts during the year. After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be
a. $3,600
b. $1,200
c. $7,200
d. $3,000
21- Which of the following would be subtracted from the balance per books on a bank reconciliation?
a. Outstanding checks
b. Notes collected by the bank
c. Deposits in transit
d. Service charges
2-allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for Bad Debt Expense? debit Allowance for Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600 debit Bad Debt Expense $21,800; credit Allowance for Doubtful Accounts, $21,800 debit Allowance for Doubtful Accounts, $21,800; credit Bad Debt Expense, $21,800 debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600 Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.Explanation / Answer
2- d. debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600
5 - c. $136
7- a. debit Cash; credit Sales
8- c. 6.75
9- a. $7,280
10- b. $1,263
11 - a. Equipment Cr. $310,000
12- d. $ 9,600
17- d. $3,000
21- b. Notes collected by the bank
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