Chapter 5 Flashcards
Accounts receivable has a debit balance of 2400 and the allowance for uncollectable accounts has a credit balance of 400€. A 90 account receivable has been written off. what is the amount of net receivables after the write off A: 1910 B:2000 C: 2090 D: 2310
B
Net Sales total is 803.000. beginning and ending accounts receivables are 80.000 and 74.000. calculate receivables collection period. A:10 days B: 35 days C: 34 days D: 36 days
B 365x((80.000+74000))/2)/803.000) = 35
The journal entry to record the receivables from performing a service on account is
A: Debit notes receivables, credit service revenue
B: Debit notes receivables, credit cash
C: Debit service revenue, credit accounts receivable
Debit account receivables, credit service revenue
D
To record recover of previously written off receivables we
A: Debit receivables, Credit allowance for doubtful receivables
B: Debit allowance for doubtful receivables, credit uncollectibale account expense
C: Debit receivables; credit uncollectable account expense
D: both a and c
C
To record estimated uncollectible accounts under the write off method you
A need to debit allowance for uncollectible accounts and credit accounts receivable
B: Need to debit Accounts receivable and credit Allowance for Uncollectible Accounts
C: Need to debit Uncomlectible Accounts Expense and credit Allowance for Uncollectible Accounts
D: Do not need to recognize a journal entry
D
The balance in beginning AR is 650.000 and 350.000 at the end. Sales on account during the year totaled 770.000. During the year 80.000 in customer accounts were written off. How much cash was collected during the period. A: 570.000 B: 990.000 C: 300.000 D: 220.000
B
A high receivable turnover would most likely indicate that
A: Policies for extending credit to customers are too tight
B: Net credit sales for the year have been overstated
C: The company is unsuccessfully in its efforts to collect cash from customers
D: AR balances have been overstated
A
Unser the allowance method for estimating uncollectible accounts, the entry to write of an account:
A: Decreases the Accounts Receivable, thus decreasing the net realizable value of the accounts receivables
B: Decreases both the AR and the allowance for uncollectible accounts, thus decreasing the net realizable value of the accounts receivable
C: has no eeffect on the net realizable value off the ar
D: Increases the Allowance for uncollectible Accounts, this decreasing the net realizable value of the AR
C
An aging of accounts receivable table indicates that the amount of uncollectible account is 7.200€. The allowance for uncollectible accounts prior to any adjustments, has a credit balance if 2000€. The adjusting entry includes a
A: Credit to Allownace for uncollectible Accounts
B: Credit AR
C: Credit to uncollectible-Accounts Exoense
D: Debit to allowance to uncollectible accounts
A
