Quiz 2 - a W New A ACC 311 Quiz 2 5 Points Each Unless...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a W New... A- ACC 311 - Quiz 2 - 5 Points Each Unless Marked Circie the most appropriate reSponse Name Waiter firm-“L Section (time) 8, AM 1. On Juli/i“, Empire Corporation selfs merchandise on account to the Shoe Outlet Co. for $1,000 terms 3/1_§, n/30. 054217111343!“ the Shoe Outlet Co. returns merchandise worth $300 to Empire corporation. Oh'jfiiy 16*, payment is received from the Shoe Outlet Co. for the total and correct balance due. What is the amount of cash received? A. $670 {one — see) $700 ”(on 6’ ,ea :1 Lt - 2:. 10C) . None of the above a" m ‘ratr‘t 2. The Austin Computer Company uses the percentage of credit sales method for estimating bad debts. A journal entry needs to be made to write off the accounts receivable of a customer in the amount of $2,000. The journal entry to record the write-off of the account would be: MW Inez-me— . DEBIT CREDIT “— i ; meme Maseru... _-_ 3. In 2006,3ack Russeil Co. had net credit saiesof $1,000,000 and total sales of 2,000,000. On Jan. I, 2006, the allowance for doubtful accounts had a credit baiance of $6,959.90- During 2006, $20,000 of uncoilectibie accounts receivable were written off. Past P experience indicates that 3% of net credit sales become uncoiiectible. What is the ending chior bad debts balance at Dec. 31, 2006? The company uses the percentage of credit sales method to estimate bad debt expense. ~27 Q34)? mm a $50,000 . om; $40,000 501006" .n We . $30,000 ”we t, boo, em a: 39,000 . None of the above 4. Under the aging of accounts receivabie method to estimate bad debts: - The balance in Net Credit Sale account prior to adjustment must be considered. The balance in the Allowance for Doubtful Accounts prior to adjustment must be considered. Bad Debt Expense is recogntzed when a specific Accounts Receivable balance is written off. @ Two of the above are correct 5. Slopeside Inc. uses the agingofiaccountswreceivabie method. They determined that the ending balance in their aliowance for bad debt account on 12/31/2007 shouid be $10,000. The allowance balance on 12/31/2006 was $7,000. Slopeside inc. had specific A/R write—offs of $8,000 during 2007. Based only on these facts what is the amount of bad debt expense that shouEd be recognized/booked in 2007? awe £0,000 $305.56) ‘32::va 3341M; E-lefi,‘ Elk/£3430 ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern