EXAM3FALL09

EXAM3FALL09 - ACCT301INTERMEDIATEACCOUNTING...

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ACCT 301 INTERMEDIATE ACCOUNTING FALL 2009 EXAM 3, CHAPTERS 7 TO 9 1. On   the   December   31,   2010   balance   sheet   of   Vanoy   Co.,   the   current   receivables  consisted of the following: Trade accounts receivable $  75,000 Allowance for uncollectible accounts (2,000) Claim against shipper for goods lost in transit (November 2010) 3,000 Selling price of unsold goods sent by Vanoy on consignment  at 130% of cost (not included in Vanoy 's ending inventory) 26,000 Security deposit on lease of warehouse used for storing some inventories     30,000 Total $132,000 At December 31, 2010, the correct total of Vanoy's current net receivables was a. $76,000. b. $102,000. c. $106,000. d. $132,000. 2. Ace Co. prepared an aging  of its accounts receivable  at December 31, 2010 and  determined that the net realizable value of the receivables was $300,000. Additional  information is available as follows: Allowance for uncollectible accounts at 1/1/10—credit balance $  34,000 Accounts written off as uncollectible during 2010 23,000 Accounts receivable at 12/31/10 325,000 Uncollectible accounts recovered during 2010 5,000 For the year ended December 31, 2010, Ace's uncollectible accounts expense would be
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$25,000. b. $23,000. c. $16,000. d. $9,000. 3.For the year ended December 31,  2010, Dent Co. estimated its allowance for uncollectible  accounts   using   the   year-end   aging   of   accounts   receivable.   The   following   data   are  available: Allowance for uncollectible accounts, 1/1/10 $56,000 Provision for uncollectible accounts during 2010 (2% on credit sales of $2,000,000) 40,000 Uncollectible accounts written off, 11/30/10 46,000 Estimated uncollectible accounts per aging, 12/31/10 69,000 After year-end adjustment, the uncollectible accounts expense for 2010 should be a. $46,000. b. $62,000. c. $69,000. d. $59,000. 4. Nenn Co.'s allowance for uncollectible accounts was $95,000 at the end of 2010 and  $90,000 at the end of 2009. For the year ended December 31, 2010, Nenn reported bad  debt expense of $13,000 in its income statement. What amount did Nenn debit to the  appropriate account in 2010 to write off actual bad debts? a. $5,000 b. $8,000 c. $13,000 d. $18,000 5. Under the allowance method of recognizing uncollectible accounts, the entry to write off  an uncollectible account a. increases the allowance for uncollectible accounts. b. has no effect on the allowance for uncollectible accounts. c.
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This note was uploaded on 11/27/2009 for the course ACCT 301 taught by Professor Cathyduffy during the Spring '09 term at Carthage.

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EXAM3FALL09 - ACCT301INTERMEDIATEACCOUNTING...

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