116.In 2014, the Dugan Co. had net credit sales of $750,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $16,000. During 2014, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $200,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?
a.$20,000
b.$34,000
c.$36,000
d.$30,000
117.A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of
a.$18,000.
b.$19,000.
c.$17,980.
d.$17,000.
118.In 2014, Garrison Company had net credit sales of $1,500,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $36,000. During 2014, $60,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?
a.$40,000
b.$150,000
c.$64,000
d.$60,000
12/31/13
Accounts receivable€1,050,000
Allowance (90,000)
Cash realizable value€960,000
During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000.
The change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a
a.€134,000 increase.
b.€118,000 increase.
c.€74,000 increase.
d.€102,000 increase.
12/31/13
Accounts receivable€1,050,000
Allowance (90,000)
Cash realizable value€960,000
During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000.
Bad debts expense for 2014 is
a.€44,000.
b.€28,000.
c.€118,000
d.€2,000.
121.During 2014, Hitchcock Inc. had sales on account of $176,000, cash sales of $72,000, and collections on account of $112,000. In addition, they collected $1,950 which had been written off as uncollectible in 2013. As a result of these transactions, the change in the accounts receivable balance indicates a
a.$134,050 increase.
b.$64,000 increase.
c.$62,050 increase.
d.$136,000 increase.
122.Klosterman Corporation’s unadjusted trial balance includes the following balances (assume normal balances):
Accounts Receivable$373,000
Allowance for Doubtful Accounts7,100
Bad debts are estimated to be 4% of outstanding receivables. What amount of bad debts expense will the company record?
a.$14,920
b.$7,820
c.$15,204
d.$14,636
123.Black Company provides for bad debts expense at the rate of 2% of credit sales. The following data are available for 2014:
Allowance for doubtful accounts, 1/1/14 (Cr.).....................$ 10,500
Accounts written off as uncollectible during 2014.................. 6,500
Credit sales in 2014........................................1,750,000
The Allowance for Doubtful Accounts balance at December 31, 2014, should be
a.$39,000
b.$35,000
c.$31,000
d.$6,500
124.In 2014, Freeze Company had credit sales of $1,200,000 and granted sales discounts of $24,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $30,000. During 2014, $50,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2014?
a.$15,280
b.$16,000
c.$35,280
d.$66,000
125.An analysis and aging of the accounts receivable of Downs Company at December 31 revealed the following data:
Accounts Receivable.......................................?950,000
Allowance for Doubtful Accounts per books
before adjustment (Cr.).....................................100,000
Amounts expected to become uncollectible......................109,000
a.?941,000
b.?850,000
c.?841,000
d.?741,000