Question 1 of 20 0.0/ 5.0 points under the allowance method, bad debt
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Question 1 of 20 |
0.0/ 5.0 Points |
Under the allowance method, Bad Debt Expense is recorded
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[removed] A. as an estimate. |
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[removed] B. when an individual account is written off. |
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[removed] C. several times during the year as needed. |
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[removed] D. None of the above |
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Question 2 of 20 |
0.0/ 5.0 Points |
Which amount does not change during the period and is added to purchases when computing the cost of goods available for sale?
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[removed] A. Beginning inventory |
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[removed] B. Ending inventory |
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[removed] C. Periodic inventory |
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[removed] D. Freight-in |
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Question 3 of 20 |
0.0/ 5.0 Points |
Which method uses an aging of Accounts Receivable to calculate the Bad-Debts Expense?
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[removed] A. Income statement approach |
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[removed] B. Balance sheet approach |
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[removed] C. Aging the Accounts Receivable |
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[removed] D. Direct write-off |
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Question 4 of 20 |
0.0/ 5.0 Points |
The ending Merchandise Inventory account appears in the _______ on the worksheet.
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[removed] A. adjusted trial balance and balance sheet columns |
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[removed] B. adjustment column |
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[removed] C. adjustment, adjusted trial balance, and income statement columns |
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[removed] D. adjustment, adjusted trial balance, and balance sheet column |
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Question 5 of 20 |
0.0/ 5.0 Points |
When using a periodic inventory method, which account is increased when you buy merchandise inventory?
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[removed] A. Cost of Goods Sold |
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[removed] B. Beginning Inventory |
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[removed] C. Ending Inventory |
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[removed] D. Purchases |
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Question 6 of 20 |
0.0/ 5.0 Points |
Which of these is true about the normal balance of an income summary?
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[removed] A. The balance is debit. |
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[removed] B. The balance is credit. |
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[removed] C. The account doesn’t have a normal balance. |
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[removed] D. It depends on which financial statement it appears. |
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Question 7 of 20 |
0.0/ 5.0 Points |
Net realizable value can be defined as the
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[removed] A. Gross Accounts Receivable. |
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[removed] B. Current Bad Debts Expense. |
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[removed] C. amount of Accounts Receivable you don’t expect to collect. |
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[removed] D. Gross Accounts Receivable minus the Allowance for Doubtful Accounts. |
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Question 8 of 20 |
5.0/ 5.0 Points |
The beginning Merchandise Inventory account appears in the _______ on the worksheet.
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[removed] A. adjustment column |
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[removed] B. trial balance and the balance sheet columns |
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[removed] C. trial balance and adjustment columns |
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[removed] D. All of the above |
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Question 9 of 20 |
0.0/ 5.0 Points |
Indy Sport and Hobby’s Allowance for Doubtful Accounts had an unadjusted credit balance of $400. The manager estimates that $900 of the Accounts Receivable is uncollectible. Using the balance sheet approach, the year-end adjusting entry for Bad-Debts Expense includes a
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[removed] A. credit to the Bad-Debt Expense account for $500. |
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[removed] B. debit to the Bad-Debts Expense account for $900. |
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[removed] C. credit to the Bad-Debts Expense account for $1,300. |
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[removed] D. debit to the Bad-Debts Expense account for $500. |
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Question 10 of 20 |
5.0/ 5.0 Points |
Cost of goods sold equals
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[removed] A. beginning inventory + net purchases + freight-in + ending inventory. |
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[removed] B. beginning inventory – net purchases – freight-in + ending inventory. |
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[removed] C. beginning inventory + net purchases + freight-in – ending inventory. |
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[removed] D. beginning inventory – net purchases + freight-in + ending inventory. |
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Question 11 of 20 |
5.0/ 5.0 Points |
Which inventory appears in the balance sheet column of the worksheet?
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[removed] A. Ending inventory |
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[removed] B. Beginning inventory |
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[removed] C. Combination of beginning and ending inventories |
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[removed] D. None of the above |
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Question 12 of 20 |
5.0/ 5.0 Points |
Beginning and ending inventories for Webster’s Books are $9,000 and $6,000, respectively. The debit amounts (not including Income Summary) in the income statement columns of the worksheet total $14,000, and the credit amounts (not including Income Summary) total $15,500. The firm has a
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[removed] A. net income of $1,500. |
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[removed] B. net loss of $1,500. |
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[removed] C. net loss of $3,000. |
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[removed] D. net income of $3,000. |
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Question 13 of 20 |
0.0/ 5.0 Points |
At the start of the year, Northern Lights had $8,000 worth of merchandise. What do we know about Northern Lights?
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[removed] A. It’s a service business. |
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[removed] B. It’s a retail business. |
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[removed] C. The company ended with a net income last year. |
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[removed] D. The company ended with a net loss last year. |
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Question 14 of 20 |
5.0/ 5.0 Points |
Which type of account is an Allowance for Doubtful Accounts?
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[removed] A. Asset |
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[removed] B. Contra-asset |
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[removed] C. Revenue |
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[removed] D. Contra-revenue |
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Question 15 of 20 |
0.0/ 5.0 Points |
Using the aging method, estimated uncollectible accounts are $3,000. If the balance in the Allowance for Doubtful Accounts is a $600 credit before adjustment, what is the Bad-Debts Expense adjustment for the period?
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[removed] A. $3,000 |
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[removed] B. $600 |
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[removed] C. $2,400 |
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[removed] D. $3,600 |
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Question 16 of 20 |
0.0/ 5.0 Points |
Harry’s Hardware estimates that approximately $1.75 out of every $100 of credit sales proves to be uncollectible. Barber calculates Bad-Debts Expense using the
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[removed] A. income statement approach. |
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[removed] B. direct write-off method. |
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[removed] C. balance sheet approach. |
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[removed] D. aging the Accounts Receivable approach. |
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Question 17 of 20 |
0.0/ 5.0 Points |
On December 31, 2012, Brooke’s Horse Stable’s unadjusted Allowance for Doubtful Accounts showed a debit balance of $432. An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000. The year-end adjusting entry for Bad-Debts Expense includes a
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[removed] A. debit to the Allowance account for $568. |
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[removed] B. credit to the Allowance account for $42. |
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[removed] C. debit to the Allowance account for $822. |
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[removed] D. credit to the Allowance account for $1,432. |
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Question 18 of 20 |
0.0/ 5.0 Points |
An account never used in a service business is
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[removed] A. Consulting Fees-Revenue. |
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[removed] B. Interest Payable. |
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[removed] C. Merchandise Inventory. |
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[removed] D. Accumulated Depreciation–Equipment. |
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Question 19 of 20 |
0.0/ 5.0 Points |
Fit City estimates it will collect $2,300 of the $2,425 owed by customers. The difference of $125 represents the
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[removed] A. Gross Accounts Receivable. |
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[removed] B. Allowance for Doubtful Accounts. |
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[removed] C. Net Realizable Value. |
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[removed] D. Value of the Current Unpaid Receivables. |
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Question 20 of 20 |
0.0/ 5.0 Points |
Beginning merchandise inventory would be found on the worksheet in the
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[removed] A. income statement debit column. |
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[removed] B. income statement credit column. |
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[removed] C. balance sheet debit column. |
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[removed] D. balance sheet credit column. |