Home / Questions / Using the percentage-of-sales method, you estimate that total uncollectible accounts are $

Using the percentage-of-sales method, you estimate that total uncollectible accounts are $

Using the percentage-of-sales method, you estimate that total uncollectible accounts are $4,500. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,400. The amount of the adjusting entry is:

A) $5,900

B) $4,500

C) $3,100

D) $1,400

22) Using the percentage-of-sales method, you estimate that total uncollectible accounts are $4,500. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,400. The amount of the adjusting entry is:

A) $1,400

B) $3,100

C) $4,500

D) $5,900

23) Under the allowance method, if bad debt write-offs during the year exceed the allowance amount, the balance in Allowance for Uncollectible Accounts at year end prior to adjustment:

A) should be deducted from Accounts Receivable

B) will be zero

C) will be a debit

D) should be adjusted by debiting it to bring the balance back to zero

24) Using the aging-of-accounts-receivable method to estimate uncollectible receivables, CMU Corporation estimates that $3,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $600. Uncollectible account expense to be reported on the income statement is:

A) $4,350

B) $3,750

C) $3,150

D) $600

25) Smart-T Corporation uses the aging-of-accounts-receivable method to estimate uncollectible receivables.  At year end Smart-T estimates that $4,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $200. Uncollectible account expense to be reported on the income statement is:

A) $4,750

B) $4,950

C) $4,550

D) $200

26) Using the aging-of-accounts-receivable method to estimate uncollectible receivables, Records Management Corp. estimates that $8,000 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a debit balance of $2,000. Uncollectible account expense to be reported on the income statement is:

A) $10,000

B) $8,000

C) $6,000

D) $2,000

27) The direct write-off method does not meet the requirements of the:

A) matching principle

B) revenue recognition principle

C) full disclosure principle

D) historical cost principle

28) Lifecycle Management Corporation uses the percentage-of-sales method to estimate uncollectible receivables. Net credit sales for the current year amount to $2,000,000 and management estimates 5% will be uncollectible. Allowance for doubtful accounts prior to adjustment has a credit balance of $10,000. The amount of expense reported on the income statement will be:

A) $110,000

B) $100,000

C) $90,000

D) $10,000

29) When an account is written off using the direct write-off method, total assets will:

A) remain the same

B) increase

C) decrease

D) cannot be determined

30) Livelink Incorporated use the percentage-of-sales method to estimate uncollectible receivables. Net credit sales for the current year amount to $1,000,000 and management estimates 3% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a debit balance of $1,900. The amount of expense reported on the income statement will be:

A) $31,900

B) $30,000

C) $28,100

Dec 09 2019 Read more Less More

Answer (UnSolved)

question Subscribe To Get Solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form