91.Dalton Company uses the allowance method to account for uncollectible receivables. Dalton has determined thatthe Irish Company account is uncollectible. To write off this account, Dalton should debit
a.Bad Debt Expense and credit Accounts Receivable
b.Bad Debt Expense and credit Allowance for Doubtful Accounts
c.Allowance for Doubtful Accounts and credit Accounts Receivable
d.Accounts Receivable and credit Allowance for Doubtful Accounts
92.In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact theamount of the adjustment when applying which method?
a.direct write-off method
b.percentage of sales method
c.analysis of receivables method
d.both percentage of sales and analysis of receivables methods
93.Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% ofnet credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of$2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of$100,000. There were no sales returns or sales discounts during the year. After the adjusting entry, the December31, balance in the Bad Debt Expense will be
a. $1,200
b. $3,000
c. $3,600
d. $7,200
94.A company uses the allowance method to account for uncollectible accounts receivables.When the firm writesoff a specific customer's account receivable
a.total current assets are reduced
b.total expenses for the period are increased
c.net realizable value of accounts receivable increases
d.there is no effect on total current assets or total expenses
95.Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment). Thecompany prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of$41,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?
a.debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600
b.debit Allowance for Doubtful Accounts, $43,200; credit Bad Debt Expense, $43,200
c.debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
d.debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600
96.Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). Thecompany prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be$31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?
a.debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
b.debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200
c.debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600
d.debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600
97.Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment), and baddebt expense is estimated at 4% of net credit sales. If net credit sales are $800,000, the amount of the adjustingentry to record the estimate of the uncollectible accounts is
a. $29,500
b. $34,500
c. $32,000
d. cannot be determined
98.Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and ananalysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be$16,000. Based on the estimate above, which of the following adjusting entries should be made?
a.debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
b.debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
c.debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
d.debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800
99.The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables showsthat $640 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of$110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in theamount of:
a. $110
b. $640
c. $530
d. $750
100.Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and baddebt expense is estimated at 3% of net credit sales. If net credit sales are $300,000, the amount of the adjustingentry to record the estimated uncollectible accounts receivables is
a. $8,500
b. $9,500
c. $9,000
d. Cannot be determined