91. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a
A. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
B. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
C. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
D. debit to Loss on Credit Sales and a credit to Accounts Receivable.
92. The balance in Allowance for Doubtful Accounts must be considered prior to end of period adjustment when using which of the following methods?
A. Allowance method
B. Direct write-off method
C. Accrual method
D. Net realizable method
93. You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to
A. debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
B. debit Bad Debt Expense and credit Accounts Receivable.
C. debit Allowance for Doubtful Accounts and credit Accounts Receivable.
D. debit Allowance for Doubtful Accounts and credit Bad Debt Expense.
94. Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
A. Bad Debts Expense 13,000
Allowance for Doubtful Accounts 13,000
B. Bad Debts Expense 15,000
Allowance for Doubtful Accounts 15,000
C. Bad Debts Expense 13,000
Accounts Receivable 13,000
D. Bad Debts Expense 15,000
Accounts Receivable 15,000
95. Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts
A. Liabilities decrease.
B. Net Income is unchanged.
C. Total Assets are unchanged.
D. Total Assets decrease.
96. The amount of a promissory note is called the
A. realizable value
B. maturity value
C. face value
D. proceeds
97. The amount of the promissory note plus the interest earned on the due date is called the
A. realizable value
B. maturity value
C. face value
D. net realizable value
98. A 60-day, 10% note for $9,000, dated April 15, is received from a customer on account. The face value of the note is
A. $9,850
B. $7,200
C. $9,900
D. $9,000
99. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
A. $10,000
B. $10,200
C. $200
D. $9,800
100. Interest on a note can be calculated without knowledge of the
A. note's maturity date
B. rate of interest
C. notes duration
D. principal amount