Name: _______________________________ Date: __________ S
Row: ____________ Seat: ____________
PRINCIPLES OF FINANCIAL ACCOUNTING I
Summer School
Chapter 8 – Receivables
"As a student of ORU I hereby pledge my full and hearty support to the Honor Code. I agree not
only to be honest myself but to report all cases of dishonesty that are observed by me."
1.
What is the classification of Allowance for Doubtful
Accounts?
2.
The interest on a $250 note at 6% for 60 days is
$2.50
3.
A 60-day note dated May 23 will be due on
July 22
4.
The maturity value of a 6%, 90-day, $800 note is
$812
5.
A 3-month note dated January 31 will be due on
April 30
6.
Which of the two methods of accounting for
uncollectible accounts (allowance or direct write-off)
provides for the best matching of expenses and revenue
in the same period of time?
7.
On December 31, after adjusting entries have been made,
Accounts Receivable has a $70,000 balance, Allowance
for Doubtful Accounts a $5,000 normal balance, and Bad
Debts Expense a $3,000 balance. The “cash realizable
value” of Accounts Receivable is
8.
In writing off an uncollectible account by the direct
write-off method, the account debited is
9.
Allowance for Doubtful Accounts has a debit balance of
$250 at the end of the year before adjustment. Sales for
the year amounted to $305,400 and sales returns and
allowances amounted to $5,400. If uncollectible
accounts expense is estimated at 1% of net sales, the
amount of the appropriate adjusting entry will be
10.
If, instead of a percentage of net sales, the adjusting entry
in number 9 is based on an analysis of receivables that
indicates doubtful accounts of $4,500, the amount of the
adjustment will be
Contra asset or
Contra receivables
Allowance
$65,000
Bad Debts Expense
$3,000
$4,750
Name: _______________________________ Date: __________ S
Row: ____________ Seat: ____________
PRINCIPLES OF FINANCIAL ACCOUNTING I
Summer School
Chapter 8 – Receivables
"As a student of ORU I hereby pledge my full and hearty support to the Honor Code. I agree not
only to be honest myself but to report all cases of dishonesty that are observed by me."
1.
What is the classification of Allowance for Doubtful
Accounts?
2.
The interest on a $250 note at 6% for 60 days is
3.
A 60-day note dated May 23 will be due on
4.
The maturity value of a 6%, 90-day, $800 note is
5.
A 3-month note dated January 31 will be due on
6.
Which of the two methods of accounting for
uncollectible accounts (allowance or direct write-off)
provides for the best matching of expenses and revenue
in the same period of time?
7.
On December 31, after adjusting entries have been made,
Accounts Receivable has a $70,000 balance, Allowance
for Doubtful Accounts a $5,000 normal balance, and Bad
Debts Expense a $3,000 balance. The “cash realizable
value” of Accounts Receivable is
8.
In writing off an uncollectible account by the direct
write-off method, the account debited is
9.
Allowance for Doubtful Accounts has a debit balance of
$250 at the end of the year before adjustment. Sales for
the year amounted to $305,400 and sales returns and
allowances amounted to $5,400. If uncollectible
accounts expense is estimated at 1% of net sales, the
amount of the appropriate adjusting entry will be
10.
If, instead of a percentage of net sales, the adjusting entry
in number 9 is based on an analysis of receivables that
indicates doubtful accounts of $4,500, the amount of the
adjustment will be