Principles of Accounting I - Lesson 5 Exam Results.doc -...

This preview shows page 1 - 4 out of 14 pages.

Principles of Accounting ILesson 5Question 12.5 / 2.5 pointsIndy Sport and Hobby’s Allowance for Doubtful Accounts had an unadjusted credit balance of $400.The manager estimates that $900 of the Accounts Receivable is uncollectible. Using the balancesheet approach, the year-end adjusting entry for Bad Debts Expense __________.Question options:includes a credit to the Bad Debt Expense account for $500includes a debit to the Bad Debts Expense account for $900includes a credit to the Bad Debts Expense account for $1,300includes a debit to the Bad Debts Expense account for $500
Question 22.5 / 2.5 poAfter having written off a customer under the direct write-off method, the account will be reopenedwhen the customer __________.
Question 32.5 / 2.5 poIf the allowance method of accounting for uncollectible receivables is used, what general ledgeraccount is debited to write off a customer’s account as uncollectible?
Bad Debts RecoveredQuestion 40 / 2.5 poGross Accounts Receivable is $12,000. Allowance for Doubtful Accounts has a credit balance of $600.Net sales for the year are $100,000. In the past, 2% of sales had proved uncollectible, and an agingof the receivables indicates $1,900 as uncollectible. What would be the adjusted balance of theAllowance account under the balance sheet approach?
Question 52.5 / 2.5 poA company receives a letter from a customer named Mary stating that she is bankrupt. The entry towrite off her balance of $1,250 would be __________.Question options:Allowance for Doubtful Accounts1,250Accounts Receivable/Mary1,250Accounts Receivable/Mary1,250Bad Debt Expense1,250Bad Debt Expense1,250Allowance for Doubtful Accounts1,250none of the above
Question 62.5 / 2.5 poWhat type of account is an Allowance for Doubtful Accounts?
AssetContra-assetRevenueContra-revenueQuestion 70 / 2.5 poThe journal entry to write off an account judged to be uncollectible under the allowance wouldinclude a debit to __________.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 14 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
N/A
Tags
Accounting, Balance Sheet, Generally Accepted Accounting Principles, Doubtful Accounts, Question options

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture