Exam (elaborations)
ch 8 accounting final exam (1)
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- Biochemistry Module 3
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- Biochemistry Module 3
ch 8 accounting final exam (1)
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ch 8 accounting final examnet account recievable - CORRECT ANSWER-gross AR - (allowances + discounts) -
bad debts
percentage of credit sales method - CORRECT ANSWER-bases bad debt expense
on the historical percentage of credit sales that result in bad debts
aging method - CORRECT ANSWER-Basing the estimate of future bad debts on the
various ages of individual accounts receivable, using a higher percentage for "old"
accounts than for "new" accounts
bad debt expense - CORRECT ANSWER-difference between ending balance of
allowance for bad debt and credit balance of allowance for bad debt
Interest Formula - CORRECT ANSWER-principal x rate x time
aging of receivables method - CORRECT ANSWER-A method of estimating
uncollectible receivables by determining the balance of the Allowance for Bad Debts
account based on the age of individual accounts receivable.
receivable turnover ratio - CORRECT ANSWER-Net Credit Sales/Average Net
Receivables
days to collect - CORRECT ANSWER-365/receivables turnover ratio
The amount of uncollectible accounts at the end of the year is estimated to be
$30,000, using the aging of accounts receivable method. The balance in the
Allowance of Doubtful Accounts account is an $10,000 credit before adjustment.
What is the adjusted balance of the Allowance for Doubtful Accounts at the end of
the year? - CORRECT ANSWER-30,000
The Perry Company reported Accounts Receivable, Net of $64,600 at the beginning
of the year and $73,600 at the end of the year. If the company's net sales revenue
during the fourth year was $896,000, what are the days to collect during
year?(Round all calculations to 1 decimal place.) - CORRECT ANSWER-28.1
The balance in the allowance for doubtful account is = to estimate of uncollectables
using aging method. - CORRECT ANSWER-true
Morrow Incorporated uses the percentage of credit sales method of estimating
doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit
balance of $5,700 and the company had $290,000 of net credit sales during the
period. Morrow has experienced bad debt losses of 6% of credit sales in prior
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