Quiz 5 Fall 2011 - ACC 311- Quiz 5 NAME_ 5 Points Each 4....

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ACC 311- Quiz 5 NAME________________________________________ 5 Points Each 4. TRUE OR  FALSE :     Allowance for doubtful accounts  is a contra revenue account.   1. In 2009 Terrier Company had net credit sales of $2,000,000.  On Jan. 1, 2009, their  allowance for doubtful accounts had a credit balance of $30,000.  During 2009, $20,000 of  uncollectible accounts receivable were written off.  Past experience indicates that 1% of  net credit sales become uncollectible.  What is the  ending allowance for doubtful   account balance at Dec. 31, 200     9    ?      Terrier Company uses the percentage of credit sales  method to estimate bad debt expense.   30,000-20,000+(2,000,000x.01)=30,000 5. TRUE OR  FALSE :        Bad Debt expense is one of three accounts deducted from gross revenue to get net  revenue.  3. On Nov 5 th , Big Racket Corporation sells merchandise on account to the Sports Outlet 
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This note was uploaded on 12/13/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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Quiz 5 Fall 2011 - ACC 311- Quiz 5 NAME_ 5 Points Each 4....

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