Quiz 7 - Quiz on Chapter 7 Version A Important PRINT your...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz on Chapter 7 Version A Important: PRINT your responses in the space provided next to each question. For the following Multiple Choice Questions, identify the letter of the choice (A,B,C, D or E) that best completes the statement or answers the question. ____ 1. On December 16, 2004, Bank of Athens accepts a $10,000, 60 day, 7% note from a customer. If the bank’s accounting period ends on December 31, 2004, and the note is collected on February 14, 2005, which one of the following statements will be TRUE for Bank of Athens (round answers to the nearest dollar)? A. On December 31, 2004, the Bank will credit Interest Receivable for $29. B. On February 14, 2005, the Bank will credit Interest Revenue for $117. C. On February 14, 2005, the Bank will debit Interest Revenue for $88. D. On February 14, 2005, the Bank will credit Interest Receivable for $29. E. On December 16, 2004, the Bank will debit Interest Revenue for $29. ____ 2. On Jan 1, 2004, Allowance for Doubtful Accounts balance is $550. On December 31, 2004, Allowance for Doubtful Accounts balance is $910. Bad debts expense for 2004 is $630 and $870 of accounts are written off in 2004. What is the amount of cash collected on previously written off accounts? A. $40 B. $120 C. $600 D. $200 E. $1,140 ____ 3. Ardy Company has the following unadjusted account balances on December 31, of the current year. The preadjustment balance of Allowance for Doubtful Accounts is $1,600 debit. This company uses the following aging of accounts receivable to estimate its bad debts. Accounts Age
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/29/2008 for the course ACCT 2101 taught by Professor Bhan during the Fall '07 term at UGA.

Page1 / 5

Quiz 7 - Quiz on Chapter 7 Version A Important PRINT your...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online