Help with ACC Questions 3 ?

24. Allowance for Doubtful Accounts has a credit 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 Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800

25. 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.

26. 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 credit balance, the adjustment to record bad debts for the period will require a

a. debit to Allowance for Doubtful Accounts for $2,800.

b. debit to Bad Debts Expense for $2,800.

c. debit to Allowance for Doubtful Accounts for $4,000.

d. credit to Allowance for Doubtful for $4,000.

27. The amount of a promissory note is called the

a. realizable value

b. maturity value

c. face value

d. proceeds

28. 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

29. A 60-day, 10% note for $8,000, dated April 15, is received from a customer on account. The face value of the note is

a. $8,600

b. $7,200

c. $8,800

d. $8,000

30. A 90-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. $10,300

c. $450

d. $9,550

31. On November 1, Blazer Company receives a 6% interest bearing note from Ram Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Blazer should record interest revenue of

a. $0

b. $100

c. $200

d. $600

32. If the maker of a promissory note fails to pay the note on the due date, the note is said to be

a. displaced

b. disallowed

c. dishonored

d. discounted

ABCD 33.

The number of days' sales in receivables

a. is an estimate of the length of time the receivables have been outstanding

b. measures the number of times the receivables turn over each year

c. is Net Credit Sales divided by Average Receivables

d. is not meaningful and therefore is not used