Quiz 10.docx - Quiz 10-12 ABC estimates uncollectible...

Quiz 10-12
ABC estimates uncollectible accounts based on the percentage of accounts receivable. What
effect will recording the estimate of uncollectible accounts have on the accounting equation?
Accounts Receivable are like Dead Fish that deteriorate with age
What is the receivables turnover ratio?
Calculating the Allowance for Bad Debts at the end of the year is an APPROXIMATE
procedure
ABC accounts for bad debts using the allowance method. On 6/1, ABC wrote off DE's $2,500
account. What effect will this write-off have on ABC's balance sheet at the time of the write-off?
What is the most likely reason for a company to have an increase in average collection period? Which of the following is/are a sign that a company cannot quickly turn its receivables into cash
(may have more than one answer)?
ABC has the following
information:
-
- Net credit sales =
$400,000
- Net income = $100,000
- Average total assets =
$80,000

- What is ABC's average
collection period (rounded
to the nearest whole day)?
Accounts Receivable are usually measured at Benefit Value
A company has 12,247 customers they extend credit to, how many total A/R will they have (just ABC reports a receivables turnover ratio of 14.5. The industry average is 10.7. What most likely Which of the following is/are a sign that a company can quickly turn its receivables into cash
(may have more than one answer)?
Define "Big Bath", note this question will not be graded but it is very important.
In the Allowance Method when a receivable is resurrected: asset stay the same, net income stay
the same.
In the Allowance Method when we do the year end adjusting entry for Bad Debts assets
decrease, net income decreases.
In the Allowance Method when we collect on a previously written off receivable asset stay the
same, net income stay the same.
In the allowance method Accountants have to do what to Report the Past (3 words)? Predict The
Future
GAAP- Generally Accepted Accounting Principles
A company has 12,247 customers they extend credit to, they will have 1 master A/R account.
A company has 12,247 customers they extend credit to, they will have 12,247 subsidiary
accounts.

Quiz 6 Debits& Credits
The Accounts Payable account has a beginning balance of $15,000 and the company
purchased $40,000 of supplies on account during the month. The ending balance was
$20,000. How much did the company pay to creditors during the month? (just type numbers)