An aging of a company\'s accounts receivable indicates that the estimate of unco
ID: 2500657 • Letter: A
Question
An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,800 debit balance, the adjustment to record the bad debt expense for the period will require a
credit to Allowance for Doubtful Accounts for $3,200
credit to Allowance for Doubtful Accounts for $6,800
debit to Bad Debt Expense for $5,000
debit to Bad Debt expense for $1,800
Arpels Clinic purchased X-ray equipment for $50,000, paid $12,000 down, and will pay the remainder on account. Which of the following entries properly records this transaction?
debit Equipment $50,000; credit Cash $12,000, credit Notes Payable $38,000
debit Equipment $12,000; credit Cash $12,000
debit Equipment $50,000; credit Cash $12,000, credit Accounts Payable $38,000
debit Equipment $38,000; debit Cash $12,000, credit Accounts Payable $50,000
Arpels Clinic purchased additional X-ray equipment for $200,000, by issuing a 120 day note, discounted at 6%. Which of the following entries properly records this transaction?
debit Equipment $196,000; debit Interest Expense $4,000; credit Notes Payable $200,000
debit Equipment $194,000; debit Interest Expense $6,000; credit Notes Payable $200,000
debit Equipment $200,000; debit Interest Expense $4,000; credit Notes Payable $200,000; credit Interest Payable $4,000
debit Equipment $200,000; credit Notes Payable $200,000
a.credit to Allowance for Doubtful Accounts for $3,200
b.credit to Allowance for Doubtful Accounts for $6,800
c.debit to Bad Debt Expense for $5,000
d.debit to Bad Debt expense for $1,800
Arpels Clinic purchased X-ray equipment for $50,000, paid $12,000 down, and will pay the remainder on account. Which of the following entries properly records this transaction?
a.debit Equipment $50,000; credit Cash $12,000, credit Notes Payable $38,000
b.debit Equipment $12,000; credit Cash $12,000
c.debit Equipment $50,000; credit Cash $12,000, credit Accounts Payable $38,000
d.debit Equipment $38,000; debit Cash $12,000, credit Accounts Payable $50,000
Arpels Clinic purchased additional X-ray equipment for $200,000, by issuing a 120 day note, discounted at 6%. Which of the following entries properly records this transaction?
a.debit Equipment $196,000; debit Interest Expense $4,000; credit Notes Payable $200,000
b.debit Equipment $194,000; debit Interest Expense $6,000; credit Notes Payable $200,000
c.debit Equipment $200,000; debit Interest Expense $4,000; credit Notes Payable $200,000; credit Interest Payable $4,000
d.debit Equipment $200,000; credit Notes Payable $200,000
Explanation / Answer
1. (b) credit to Allowance for Doubtful Accounts for $6,800
2(c) debit Equipment $50,000; credit Cash $12,000, credit Accounts Payable $38,000
3(d) debit Equipment $200,000; credit Notes Payable $200,000
Alowance for doubtful accounts Particulars $ Particulars $ To Bal B/f 1800 By P&L A/c 6800 To Bal C/d 5000 6800 6800Related Questions
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