test1 - Test 1 Summer 2005 Accounting 2301 Name:_ Multiple...

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Test 1 Summer 2005 Accounting 2301 Name:___________________________ Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts? a. debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800 b. debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200 c. debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800 d. debit Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800 ____ 2. Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and un- collectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is: a. $12,000 b. $6,800 c. $18,000 d. $ 1,800 ____ 3. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net expected realizable value of the accounts receivable? a. $25,000 b. $425,000 c. $450,000 d. $455,000 ____ 4. In using the allowance method of accounting for uncollectible receivables, the two ways of estimating the amount of uncollectibles are analysis of receivables and percentage of: a. payables b. cash sales c. purchases on account d. net sales on account
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____ 5. The due date of a 90-day note dated July 1 is: a. September 30 b. September 28 c. September 29 d. October 1 ____ 6. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is: a. $10,000 b. $10,300 c. $450 d. $9,550
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____ 7. What entry is required in the depositor's accounts to record outstanding checks? a. None b. debit Cash; credit Accounts Receivable c. debit Cash; credit Accounts Payable d. debit Accounts Receivable; credit Cash ____ 8. Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n): a. deduction from the balance per depositor's records b. addition to the balance per bank statement c. deduction from the balance per bank statement d. addition to the balance per depositor's records ____ 9. A check drawn by a depositor in payment of a voucher for $925 was recorded in the journal as $295. What entry is required in the depositor's accounts? a.
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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test1 - Test 1 Summer 2005 Accounting 2301 Name:_ Multiple...

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