81. At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $640. During the year, $350 of previously written-off accounts were reinstated and accounts totaling $410 are written-off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be
A. $760
B. $410
C. $580
D. $700
82. Allowance for Doubtful Accounts has a debit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts?
A. debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800
B. debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
C. debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800
D. debit Uncollectible Accounts Expense, $15,800; credit Allowance for Doubtful Accounts, $15,800
83. Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $12,900. Which of the following entries records the proper provision for doubtful accounts?
A. debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
B. debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense, $14,000
C. debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense, $11,800
D. debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800
84. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts?
A. debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400
B. debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
C. debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
D. debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400
85. When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when
A. a customer's account becomes past due.
B. an account becomes bad and is written off.
C. a sale is made.
D. management estimates the amount of uncollectibles.
86. The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles
A. will increase income in the period it is collected.
B. will decrease income in the period it is collected.
C. does not affect income in the period it is collected.
D. requires a correcting entry for the period in which the account was written off.
87. An aging of a company's accounts receivable indicates that $5,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
A. debit to Allowance for Doubtful Accounts for $3,800.
B. debit to Bad Debts Expense for $3,800.
C. debit to Allowance for Doubtful Accounts for $5,000.
D. credit to Allowance for Doubtful for $5,000.
88. An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a
A. debit to Bad Debt Expense for $5,200.
B. debit to Bad Debts Expense for $4,000.
C. debit to Bad Debts Expense for $2,800.
D. credit to Allowance for Doubtful Accounts for $5,000.
89. An aging of a company's accounts receivable indicates that $2,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $200 credit balance, the adjustment to record bad debts for the period will require a
A. debit to Bad Debt Expense for $2,200.
B. debit to Bad Debts Expense for $2,000.
C. debit to Bad Debts Expense for $1,800.
D. credit to Allowance for Doubtful Accounts for $3,000.
90. A debit balance in the Allowance for Doubtful Accounts
A. is the normal balance for that account.
B. indicates that actual bad debt write-offs have been less than what was estimated.
C. cannot occur if the percentage of receivables method of estimating bad debts is used.
D. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.