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Financial Accounting Exam #2 Questions With Correct Answers
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©SIRJOEL EXAM SOLUTIONS 12/3/2024 11:27AM Financial Accounting Exam #2 Questions With Correct Answers When a company provides services on account, which of the following accounts is debited? - answerAccounts Receivable Which of the following transactions would result in an account receivable...

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  • October 16, 2024
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  • 2024/2025
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©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM



Financial Accounting Exam #2 Questions
With Correct Answers


When a company provides services on account, which of the following accounts is debited? -

answer✔Accounts Receivable


Which of the following transactions would result in an account receivable? - answer✔Providing

services to customers on account.

The amount of cash owed to the company by its customers from the sale of products or services

on account is known as: - answer✔Accounts Receivable.


A sales discount is recorded by the seller as a(n): - answer✔Contra revenue.


On January 18, a company provides services to a customer for $500 and offers the customer

terms 2/10, n/30. Which of the following would be recorded when the customer remits payment

on January 25? - answer✔Debit Sales Discount for $10.


Which of the following refers to the seller reducing the customer's balance owed because of

some deficiency in the company's product or service? - answer✔Sales Allowance.

, ©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM


On August 4, Sanders provides services to Frederickson for $5,000, terms 3/10, n/30.

Frederickson pays for the services on August 12. What amount would Sanders record as revenue

on August 4? - answer✔$5,000.


On August 4, Sanders provides services to Frederickson for $5,000, terms 3/10, n/30.

Frederickson pays for the services on August 12. What is the amount of net revenues (total

revenue minus sales discounts) as of August 12? - answer✔$4,850.


The entry to record the estimate for uncollectible accounts includes: - answer✔A debit to Bad

Debt Expense.

Under the allowance method for uncollectible accounts, the balance of Allowance for

Uncollectible Accounts increases when: - answer✔Future bad debts are estimated.


Schmidt Company's Accounts Receivable balance is $100,000, its adjusted balance in Allowance

for Uncollectible Accounts is $4,000, and its bad debt expense is $3,800. The net amount of

accounts receivable is: - answer✔$96,000.


At the end of its first year of operations, a company establishes an allowance for future

uncollectible accounts for $5,600. At what amount would bad debt expense be reported in the

current year's income statement? - answer✔$5,600.


If a company uses the allowance method of accounting for uncollectible accounts and writes off

a specific account: - answer✔Net accounts receivable do not change

, ©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM


If a company uses the allowance method of accounting for uncollectible accounts and collects

cash on an account receivable previously written off: - answer✔There is no change in total assets


The effect of writing off a specific account receivable is: - answer✔A reduction in the Allowance

for Uncollectible Accounts

On December 31, the Accounts Receivable ending balance is $80,000. Assume that the

unadjusted balance of Allowance for Uncollectible Accounts is a debit of $500 and that the

company estimates 7% of the accounts receivable will not be collected. The amount of bad debt

expense recorded on December 31 will be: - answer✔$6,100


On December 31, the Accounts Receivable ending balance is $80,000. Assume that the

unadjusted balance of Allowance for Uncollectible Accounts is a credit of $500 and that the

company estimates 7% of the accounts receivable will not be collected. The amount of bad debt

expense recorded on December 31 will be: - answer✔$5,100


Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before

adjustment, which of the following would be recorded in the year-end adjusting entry? -

answer✔Debit Bad Debt Expense for $14,000


Suppose the balance of the allowance for uncollectible accounts at the end of the current year is

$800 (credit) before any adjustment entry. The company estimates future uncollectible accounts

to be $5,600. At what amount would bad debt expense be reported in the current year's income

statement? - answer✔$4,800

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