31) An aging-of-accounts-receivable indicates that the amount of uncollectible accounts is $3,210. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $200. The Accounts Receivable balance is $44,320. The amount of the adjusting entry for uncollectible accounts should be for:
A) $200.
B) $3,010.
C) $3,410.
D) $3,500.
32) Using the percentage-of-sales method, you estimate that total uncollectible accounts is $6,322. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $2,635. The Accounts Receivable balance is $44,320. The amount of the adjusting entry for Uncollectible-Accounts Expense is:
A) $2,635.
B) $3,687.
C) $6,322.
D) $8,957.
33) The following item appeared on a balance sheet:
Accounts Receivable, less allowance of $1,099 …..$1,432,600
The gross balance in Accounts Receivable before the allowance was deducted was:
A) $1,431,501.
B) $1,432,600.
C) $1,433,699.
D) none of the above
34) The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
Accounts Receivable
|
$1,100,000
|
Allowance for Uncollectible Accounts(Credit)
|
$35,000
|
Uncollectible-Account Expense
|
$60,000
|
What is the net realizable value of the accounts receivable?
A) $1,065,000
B) $1,100,000
C) $1,135,000
D) $1,160,000
35) Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000, and management estimates 2% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,000. The amount of Uncollectible-Account Expense reported on the income statement will be:
A) $1,000.
B) $39,000.
C) $40,000.
D) $41,000.
36) Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000 and management estimates 2% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $16,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
A) $16,000.
B) $16,320.
C) $24,000.
D) $40,000.
37) A company who uses the allowance method, writes-off a receivable of $2,000. Prior to the journal entry, the credit balance in the Allowance for Uncollectible Accounts was $18,432 and Accounts Receivable were $2,000,000. After the entry to write-off the receivable is made, the net realizable value of Accounts Receivable will be:
A) $1,979,568.
B) $1,981,568.
C) $1,998,000.
D) $2,000,000.
38) The balance in Accounts Receivable was $650,000 at the beginning of the year and $750,000 at the end of the year. Credit sales for the year totaled $4,100,000. During the year, $400,000 in customer accounts were written off. How much cash was collected from customers during the period?
A) $3,600,000
B) $4,000,000
C) $4,400,000
D) $4,800,000
39) Following Generally Accepted Accounting Principles, which method of estimating uncollectible accounts is NOT acceptable?
A) allowance method
B) percent-of-sales method
C) aging-of-receivables method
D) direct write-off method
40) Under the direct write-off method, what journal entry is prepared when an account is determined to be worthless or uncollectible?
A) debit Allowance for Uncollectible Accounts and credit Accounts Receivable
B) debit Accounts Receivable and credit Allowance for Uncollectible Accounts
C) debit Uncollectible-Account Expense and credit Allowance for Uncollectible Accounts
D) debit Uncollectible-Account Expense and credit Accounts Receivable