Acct101 Midterm with solution

Acct101 Midterm with solution - S ACCT101 Midterm Section...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 of 13 ACCT101 Midterm Section L04, 05, 06 November 2, 2010 7:00 PM – 9:00 PM Chinese Name: (If Any) English Name: Student ID: Section: Please use non-erasable pen or ball pen ( pencil is forbidden ) to answer all questions S
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 of 13
Background image of page 2
3 of 13 Problem 1 Multiple Choice (50 points, enter your answers at the table below) Answer for Multiple Choice: 1 2 3 4 5 6 7 8 9 10 c a d d c b a a c b 11 12 13 14 15 16 17 18 19 20 b b a c c d d c c b 21 22 23 24 25 c a d c b 1. What is the normal journal entry for recording bad debt expense under the allowance method? a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable. b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. c. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts. 2. What is the normal journal entry when writing-off an account as uncollectible under the allowance method? a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable. b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. c. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts. 3. Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? a. $ 532,000. b. $ 520,000. c. $ 1,920,000. d. $ 508,000.
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 of 13 4. During the year, Kiner Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $50,000 and the balance in the allowance account was $4,500. The amount of accounts receivable Kiner expect to receive from clients after the write-off entry was a. $46,000. b. $49,500. c. $41,500. d. $45,500. 5. The following information is available for Murphy Company: Allowance for doubtful accounts at December 31, 2009 $ 8,000 Credit sales during 2010 400,000 Accounts receivable deemed worthless and written off during 2010 9,000 As a result of a review and aging of accounts receivable in early January 2011, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2010. What amount should Murphy record as "bad debt expense" for the year ended December 31, 2010? a. $4,500 b. $5,500 c. $6,500 d. $2,500 6. Smith Corporation had a 01/01/10 balance in the Allowance for Doubtful Accounts of $10,000. During 2010, it wrote off $7,200 of accounts and collected $2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 01/01 and $240,000 at 31/12. At 31/12/10, Smith estimates that 5% of accounts
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/16/2011 for the course ACCT 101 taught by Professor Na during the Fall '10 term at HKUST.

Page1 / 13

Acct101 Midterm with solution - S ACCT101 Midterm Section...

This preview shows document pages 1 - 5. Sign up to view the full document.

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