help with questions for ACC 2 ?
14. Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. What entry is required in the depositor's accounts?
a. debit Other Income; credit Cash
b. debit Cash; credit Other Income
c. debit Cash; credit Accounts Receivable
d. debit Accounts Receivable; credit Cash
15. A $100 petty cash fund has cash of $18 and receipts of $80. The journal entry to replenish the account would include a
a. credit to Petty Cash for $84.
b. debit to Cash for $80.
c. debit to Cash Over and Short for $2.
d. credit to Cash for $80
16. The type of account and normal balance of Petty Cash is a(n)
a. revenue, credit
b. asset, debit
c. liability, credit
d. expense, debit
17. The debit recorded in the journal to reimburse the petty cash fund is to
a. Petty Cash
b. Accounts Receivable
c. Cash
d. various accounts for which the petty cash was disbursed
18. The receivable that is usually evidenced by a formal instrument of credit is a(n)
a. trade receivable.
b. note receivable.
c. accounts receivable.
d. income tax receivable.
19. The type of account and normal balance of Allowance for Doubtful Accounts is
a. contra asset, credit
b. asset, debit
c. liability, credit
d. expense, debit
e. expense, credit
20. An alternative name for Bad Debts Expense is
a. Collection Expense.
b. Credit Loss Expense.
c. Uncollectible Accounts Expense.
d. Deadbeat Expense.
21. Two methods of accounting for uncollectible accounts are the
a. direct write-off method and the allowance method.
b. allowance method and the accrual method.
c. allowance method and the net realizable method.
d. direct write-off method and the accrual method.
22. Under the allowance method, writing off an uncollectible account
a. affects only income statement accounts.
b. is not acceptable practice.
c. affects only balance sheet accounts.
d. affects both balance sheet and income statement accounts.
23. If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?
a. Uncollectible Accounts Expense
b. Allowance for Doubtful Accounts
c. Accounts Receivable
d. Interest Expense