41) On December 31, 2015, James Company has an accounts receivable balance of $300,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $1,000 credit balance. The company prepares the following aging schedule for accounts receivable:
Total Balance
|
1-30 days
|
31-60 days
|
61-90 days
|
over 90 days
|
$300,000
|
$150,000
|
$80,000
|
$50,000
|
$20,000
|
Percent uncollectible
|
1%
|
2%
|
5%
|
20%
|
What is the Uncollectible-Account Expense at December 31, 2015?
A) $1,500
B) $8,600
C) $9,600
D) $10,600
42) On December 31, 2015, Jerome Company has an accounts receivable balance of $300,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $1,000 credit balance. The company prepares the following aging schedule for accounts receivable:
Total Balance
|
1-30 days
|
31-60 days
|
61-90 days
|
over 90 days
|
$300,000
|
$150,000
|
$80,000
|
$50,000
|
$20,000
|
Percent uncollectible
|
1%
|
2%
|
5%
|
20%
|
What is the Allowance for Uncollectible Accounts at December 31, 2015?
A) $0
B) $8,600
C) $9,600
D) $10,600
43) 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 debit 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) $3,210
D) $3,410
44) The balance in Accounts Receivable at the beginning of the year was $500,000. The balance in Accounts Receivable at the end of the year was $700,000. Customer accounts of $400,000 were written off. The company collected $4,000,000 from credit customers and $1,000,000 from cash customers. What are credit sales for the year?
A) $400,000
B) $4,000,000
C) $4,400,000
D) $4,600,000
45) At the end of the year, Seidner Company has the following information available:
Credit sales
|
$1,000,000
|
Sales returns and allowances
|
10,000
|
Accounts Receivable
|
560,000
|
Allowance for Uncollectible Accounts(Debit)
|
42,000
|
The company uses the percent-of-sales method to estimate bad debts and has not prepared the adjusting journal entry for Uncollectible-Account Expense at year end. What does the debit balance in the Allowance for Uncollectible Accounts indicate?
A) The company overestimated the amount of uncollectible accounts at the end of the prior accounting period.
B) The company underestimated the amount of uncollectible accounts at the end of the prior accounting period.
C) Write-offs of uncollectible accounts increased dramatically in the current accounting period.
D) B and C
46) At the end of the year, Smith Company has the following information available:
Credit sales
|
$1,000,000
|
Sales returns and allowances
|
10,000
|
Accounts Receivable
|
560,000
|
Allowance for Uncollectible Accounts(Debit)
|
42,000
|
The company uses the percent-of-sales method to estimate bad debts and has not prepared the adjusting journal entry for Uncollectible-Account Expense at year end. In the prior year, uncollectible accounts were estimated at 1% of credit sales. What should the company do for uncollectible accounts at the end of the current year?
A) increase the percentage in the percent-of-sales method
B) reexamine credit policies
C) change to the direct write-off method
D) A and B
47) How much does a company expect to collect from Accounts Receivable?
A) gross amount of Accounts Receivable
B) net realizable value of Accounts Receivable
C) gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts
D) B and C
48) The income statement approach to estimating uncollectible accounts is called the ________ method. The balance sheet approach to estimating uncollectible accounts is called the ________ method.
A) direct write-off; allowance
B) allowance; direct write-off
C) percent-of-sales; aging-of-receivables
D) aging-of-receivables; percent-of-sales
49) Tanya Company has the following information:
Accounts Receivable, January 1, 2014
|
$200,000
|
Accounts Receivable, December 31, 2014
|
400,000
|
Credit Sales
|
1,800,000
|
Cash Sales
|
1,000,000
|
Write-offs of uncollectible accounts
|
10,000
|
What are collections from customers during 2014?
A) $1,590,000
B) $1,600,000
C) $2,590,000
D) $2,600,000