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Exam 15: Accounts Receivable and Uncollectible Accounts

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Question 31

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The totals from the Savoy Company's Schedule of Accounts Receivable by Age as of the end of the current year are shown below. As of the end of the current year, there is a debit balance of $75 in the Allowance for Doubtful Accounts. 1. Compute the estimated uncollectible accounts using the following rates. 2. Compute the amount of the adjusting entry for uncollectible accounts expense.

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1. $457 ($...

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Question 32

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A firm using the allowance method to provide for losses from uncollectible accounts collected the cash due from a customer whose account was previously written off. The entry to reinstate the customer's account included a credit to

A) Accounts Receivable.
B) Sales.
C) Uncollectible Accounts Expense.
D) Allowance for Doubtful Accounts.

E) B) and C)
F) A) and D)

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Question 33

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At the end of the current year, the trial balance of Diane's Dress Shop included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were $55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on .6 percent of net credit sales. Accounts Receivable $ 1,300,000 Dr. Allowance for Doubtful Accounts 9,000 Cr. 1. What is the estimated loss from uncollectible accounts for the current year? 2. What is the amount of the balance in the Allowance for Doubtful Accounts after adjustment?

The Haven Company uses the allowance method to provide for losses from uncollectible accounts. Record the following selected transactions on page 3 of a general journal, assuming the company also uses a Cash Receipts journal. Omit descriptions. 2019 Dec. 31 Recorded an adjusting entry for the estimated loss from uncollectible accounts for 2019. The estimate is based on 4 percent of accounts receivable. At the end of 2019 the balance of Accounts Receivable is $15,000 and the Allowance for Doubtful Accounts has a credit balance of $225. 2020 Apr. 4 Received notice that Nick Pratt was bankrupt and wrote off his account of $450 as uncollectible. Dec. 10 Received a check for $250 from the bankruptcy official handling the affairs of Nick Pratt, whose account was written off on April 4. The letter from the official said that the check represented a final distribution of Nick Pratt's assets. Dec. 31 Recorded an adjusting entry for the estimated loss from uncollectible accounts for 2020. The estimate is based on 4 percent of accounts receivable. At the end of 2020, the balance of Accounts Receivable is $18,000 and Allowance for Doubtful Accounts has a debit balance of $125.

Allowance for Doubtful Accounts has a credit balance of $1,000 immediately before the write-off of a $300 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is

The totals from the Kalvin Company's Schedule of Accounts Receivable by Age as of the end of the current year are shown below. As of the end of the current year, there is a debit balance of $75 in the Allowance for Doubtful Accounts. 1. Compute the estimated uncollectible accounts using the following rates. 2. Compute the amount of the adjustment for uncollectible accounts expense.

A firm reported sales of $460,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $560. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $6,460. -The balance in the Allowance for Doubtful Accounts after adjustment is:

A firm reported net credit sales of $960,000 for the year and an Accounts Receivable balance of $120,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $820. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales. -The balance in Allowance for Doubtful Accounts after adjustment is:

After the adjusting entry is made to record the estimate of losses from uncollectible accounts, Allowance for Doubtful Accounts should have a(n) ________balance.

When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off of a specific account consists of a debit to

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The ending balance in Allowance for Doubtful Accounts after adjustment is

A firm reported sales of $720,000 for the year and Accounts Receivable has a balance of $40,000 at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $730. An analysis of the aging of the accounts receivable produces an estimate of $6,200 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off of a particular customer's account includes a debit to Uncollectible Accounts Expense.

A firm reported sales of $460,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $560. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $6,460. -The amount to be reported on the income statement for Uncollectible Accounts Expense is:

A procedure that groups accounts receivable according to the length of time they have been outstanding is called ________ the accounts receivable.

Nigel Lighting uses the direct charge-off method of recording bad debts. On September 4, the company concluded that the $300 account balance of Louis Blue should be charged off. The entry to write off Blue's account will be:

The adjusting entry to record estimated losses from uncollectible accounts includes a(n)credit to the ________ account.

At the end of the current year, the trial balance of Kate's Cafe included the accounts and balances shown below. Credit sales were $90,000. Returns and allowances on these sales were $1,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 3 percent of accounts receivable. Accounts Receivable $ 22,400 Dr. Allowance for Doubtful Accounts 760 Dr. Sales 145,000 Cr. Sales Returns and Allowances 2,000 Dr. 1. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted? 2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

To achieve good internal control over accounts receivable, it is important to separate the recording of accounts receivable transactions and the collection of cash from customers.