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Earning Potential (1 Year) : 514.00 notified on: Sep 20, 2018 01:43 PM Title Accounting Description Document Preview:

Earning Potential (1 Year) :  514.00 notified on: Sep 20, 2018 01:43 PM Title Accounting Description 1.At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $23,500 and the allowance for doubtful accounts is estimated at 4% of gross receivables?AnswerA. $23,500B. $22,560C. $24,940D. $14,1001 pointsQuestion 21.Destin Deals estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Destin Deals’ computes a total of $1,680 in estimated uncollectible accounts as of December 31, 2011. Its Accounts Receivable account has a balance of $56,400 and its Allowance for Doubtful Accounts has a credit balance of $240 before adjustment at December 31, 2011. How much bad debts expense will Destin Deals’ report in 2011?AnswerA. $ 240B. $1,440C. $1,680D. $1,9201 pointsQuestion 31.In accounting for credit losses:AnswerA. The allowance method matches losses with related sales better than the direct write-off methodB. The direct write-off method involves estimating credit lossesC. The direct write-off method consistently understates assets on the balance sheetD. Both B and C1 pointsQuestion 41.Under the allowance method of accounting for credit losses, the entry to write off a specific account:AnswerA. Will increase total assetsB. Debits Bad Debts Expense and credits Allowance for Uncollectible AccountsC. Is the same as the entry to write off a specific account under the direct write-off methodD. Does not affect net income or total assetsE. None of the above1 pointsQuestion 51.The entry to record the write-off of Lowell Company’s account under the direct write-off method is:AnswerA. Accounts Receivable–Lowell CompanyAllowance for Doubtful AccountsB. Bad Debts ExpenseAllowance for Doubtful AccountsC. Allowance for Doubtful AccountsAccounts Receivable–Lowell CompanyD. Bad Debts…

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