ACC 291 Sample Final Exam 1.doc - ACC 291 Sample Final Exam...

ACC 291 Sample Final Exam
-- Hahn Company uses percentage of sales method for recording bad debts expense. For
year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that
1% is sales percentage to use. What adjusting entry will Hahn Company make to record
bad debts expense?
--Using percentage of receivables method for recording bad debts expense, estimated
uncollectible accounts are $15,000. If balance of Allowance for Doubtful Accounts is
$3,000 credit before adjustment, what is amount of bad debts expense for that period?
--Intangible assets
--Intangible assets are rights and privileges that result from ownership of long-lived
assets that
--The book value of an asset is equal to --Gains on an exchange of plant assets that has commercial substance are --Ordinary repairs are expenditures to maintain operating efficiency of a plant asset and
are referred to as
--Costs incurred to increase operating efficiency or useful life of a plant asset are referred
to as