Exam (elaborations)
Accounting Exam 4 Questions and Answers
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- Accounting
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- Accounting
Accounting Exam 4 Questions and Answers
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Accounting Exam 4 Questions andAnswers
uncollectible account - Answer-When a customer fails to pay on their account, it creates
a(n):
A contra-asset account - Answer-What type of account is Allowance for Doubtful
Accounts?
Bad Debt Expense, debit; Accounts Receivable/customer name, credit - Answer-The
journal entry to write off a customer's account under the direct write-off method is:
Allowance for Uncollectible Accounts, debit; Accounts Receivable/customer name,
credit - Answer-The journal entry to write off a customer's account under the allowance
method is:
$16,450 - Answer-A company has $235,000 in credit sales. The company uses the
allowance method to account for uncollectible accounts. The allowance for Doubtful
Accounts now has a $7,250 credit balance. If the company estimates 7% of credit sales
will be uncollectible, what will be the amount of the journal entry to record estimated
uncollectible accounts?
Net Value in the Current Assets - Answer-Accounts Receivable should be reported at
____ in the ____ section of a company's balance sheet.
$3,570 - Answer-Using a 360-day year, the maturity value of a 90-day note for $3,500 at
8% annual interest is:
February 4, 2013 - Answer-An 83-day note issued on November 13, 2012 will mature
on:
$175.00 - Answer-On March 1, 2012, Juno Corp. lent $3,500 to Bill Askins on a 1-year,
6% promissory note. The amount of interest to be accrued on December 31 will be:
3.80 (current assets/current liabilities) - Answer-Skymaster, Inc. has cash of $33,000;
net accounts receivable of $41,000; short-term investments of $15,000 and inventory of
$25,000. It also has $30,000 in current liabilities and $50,000 in long-term liabilities. The
current ratio for Skymaster, Inc is:
4 (90 days = 3 months, 12/3 = 4) - Answer-If a company has 90 day credit terms, you
would expect its accounts receivable turnover to be approximately:
D) Land - Answer-Which of the following would NOT be considered an intangible asset?
A)Goodwill, B) Franchise, C) Copyright, D) Land
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