F3

Question 1

Name two methods of accounting for write-off of uncollectible accounts

Answer 1

• Direct Write-Off

- Allowance Method - required by GAAP

Question 2

Using allowance method, whats the JE to write off an uncollectible account

Answer 2

dr: Allowance for uncollectible account

cr. Accounts receivable

Question 3

Whats the difference between factoring with recourse and without recourse?

Answer 3

With recourse: can return AR if they cant collect the money

Without recourse: Cant return nothing, loss is on the factor

Question 4

At what value should non-interest bearing promissory notes be recorded?

Answer 4

PV of future payments

Question 5

How is net realizable value calculated in lower of cost and net realizable value method?

Answer 5

Selling p - completion/disposal cost = NRV

Question 6

GAAP, how market calculated in lower of cost or market?

Answer 6

Market means current replacement cost

Find medium between ceiling , market and floor

Question 7

During periods of rising prices, LIFO will result in?

Answer 7

Lower ending inventory and Lower N.I

Question 8

What cost method is not allowed for IFRS

Answer 8

LIFO