What is Bad Debt Expense? correct answers Bad Debt Expense is when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.
How do you calculate bad debt expense using the percent of s...
ACC 101 Final Study Guide || A+ Graded Already.
What is Bad Debt Expense? correct answers Bad Debt Expense is when a receivable is no longer
collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due
to bankruptcy or other financial problems.
How do you calculate bad debt expense using the percent of sales method? correct answers Net
Credit Sales * Historical Percentage of Uncollected Sales = Bad Debt Expense
How would you journalize Allowance for Doubtful Accounts? correct answers First, you would
apply the beginning balance for allowance for doubtful accounts. If it is a debit balance, you
would debit it, if it is a credit balance, you would credit it. If the problem does not state what it
is, then it is zero.
Then, you would credit Bad Debt Expense (because this is the amount that you are saying is
uncollectible).
Finally, to get the ending balance you subtract your debits from your credits!
How would you journalize Bad Debt Expense? correct answers First, you would debit your
beginning balance as 0 because Bad Debt Expense is a temporary account, therefore its
beginning balance will always be 0.
Then debit your Bad Debt Expense calculated depending on which method you are using.
Finally, to get the ending balance you would add up all the debit balances!
How do you journalize uncollectible accounts? correct answers DEBIT- Bad Debt Expense
CREDIT- Allowance for Doubtful Accounts
you would use the Bad Debt Expense amount ^^
How do you calculate Allowance for Doubtful Accounts using the percent of sales method?
correct answers You would take the bad debt expense as calculated by the percent of sales
method and subtract it from the Allowance for Doubtful Accounts.
How do you calculate Bad Debt Expense using the Analysis of Receivables method? correct
answers Beginning Allowance for Doubtful Accounts - Ending Allowance for Doubtful
Accounts = Bad Debt Expense
How do you calculate Allowance for Doubtful Accounts using the Analysis of Receivables
Method? correct answers ?
How do you calculate Maturity Value? correct answers Maturity Value = Principal Amount +
Interest
, Interest = (Face Value * Interest Rate) * Time (Months/12 or days/360)
What do you classify Bad Debt and Allowance for Doubtful Accounts as? correct answers BAD
DEBT- EXPENSE
ALLOWANCE FOR DOUBTFUL ACCOUNTS- CONTRA-ASSET ACCOUNT (not to be
mistaken for a liability account)
BANK RECONCILIATION- What falls on the balance per BANK side? correct answers -
Deposits
- Accounts Payable (EX: checks that have been written out by the company but have not yet
cleared the bank)
- Bank Errors (EX: the bank forgot to record a deposit)
BANK RECONCILIATION- What falls on the balance per BOOKS side? correct answers -
Checks
- Bank Fees
- Interest Revenue
What is the difference between A/R Gross and A/R Net? correct answers A/R gross is A/R
assuming that the company will get everything that they are owed.
A/R Net is A/R including the uncollectible accounts (Allowance for Doubtful Accounts/ Bad
Debt Expense). This is the amount that the company will actually make.
How would you journalize Accounts Receivable Write Offs? correct answers DEBIT-
ALLOWANCE FOR DOUBTFUL ACCOUNTS
CREDIT- ACCOUNTS RECIVABLE
you will find the amount that is written off in the financial statements.
How do you calculate Depreciation Expense? correct answers (Cost -Residual) / Useful Life =
Depreciation Expense
What is the Revised Depreciation Expense Formula? correct answers ((Cost - Depreciation
Expense so far (calculated above)) - New residual value/ new useful life)
* Useful life that is left to live = Revised depreciation expense
When you are recording a capital expenditure, you record a debit to... correct answers A debit to
an ASSET account and a credit to cash.
Maintenance cost include a debit to an expense account and a credit to cash.
Capital expenditures are long-term investments, meaning the assets purchased have a useful life
of one year or more. Types of capital expenditures can include purchases of property, equipment,
land, computers, furniture, and software.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.94. You're not tied to anything after your purchase.
