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71 the collection of an account that had been previously written off under the allow 4298767

 

 

71. The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles
 
A. will increase net income in the period it is collected.
B. will decrease net income in the period it is collected.
C. does not affect net income in the period it is collected.
D. requires a correcting entry for the period in which the account was written off.

 

72. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $17,900.  Which of the following entries records the proper adjustment for Bad Debt Expense?
 
A. debit Allowance for Doubtful Accounts, $16,400; credit Bad Debt Expense, $16,400
B. debit Allowance for Doubtful Accounts, $19,400; credit Bad Debt Expense, $19,400
C. debit Bad Debt Expense $19,400; credit Allowance for Doubtful Accounts, $19,400
D. debit Bad Debt Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400

 

73. Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $12,900.  Which of the following entries records the proper adjustment for Bad Debt Expense?
 
A. debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
B. debit Allowance for Doubtful Accounts, $14,000; credit  Bad Debt Expense, $14,000
C. debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
D. debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

 

74. Allowance for Doubtful Accounts has a debit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,000.  Which of the following entries records the proper adjusting entry for bad debt expense?
 
A. debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
B. debit Bad Debt Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
C. debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
D. debit Bad Debt Expense, $15,800; credit Allowance for Doubtful Accounts, $15,800

 

75. At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $640.  During the year, $350 of previously written-off accounts were reinstated and accounts totaling $410 are written-off as uncollectible.  The end of the year balance (before adjustment) in the Allowance for Doubtful Accounts should be
 
A. $760
B. $410
C. $580
D. $700

 

76. Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a
 
A. credit to Bad Debt Expense
B. credit to Accounts Receivable
C. debit to Allowance for Doubtful Accounts
D. debit to Accounts Receivable

 

77. Dalton Company uses the allowance method to account for uncollectible receivables.  Dalton has determined that the Irish Company account is uncollectible.  To write-off this account, Dalton should debit
 
A. Bad Debt Expense and credit Accounts Receivable
B. Bad Debt Expense and credit Allowance for Doubtful Accounts
C. Allowance for Doubtful Accounts and credit Accounts Receivable
D. Accounts receivable and credit Allowance for Doubtful Accounts

 

78. In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts  will directly impact the amount of the adjustment when applying which method?
 
A. direct write-off method
B. percentage of sales method
C. Analysis of receivables method
D. both (b) and (c)

 

79. Abbott Company uses the allowance method of accounting for uncollectible accounts.  Abbott estimates that 3% of net credit sales will be uncollectible.  On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400.  During 2010, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000.  There were no Sales Returns or Sales Discounts during the year.  After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be
 
A. $1,200
B. $3,000
C. $3,600
D. $7,200

 

80. A company uses the allowance method to account for uncollectible accounts receivables.    When the firm writes off a specific customer's account receivable
 
A. total current assets are reduced
B. total expenses for the period are increased
C. total current assets are reduced and total expenses are increased
D. there is no effect on total current assets or total expenses

 

 

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