1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $ 69000. If the balance of the Allowance for Doubtful Accounts is an $ 13800 debit before adjustment, what is the balance after adjustment?
$ 82800
$ 13800
$ 55200
$ 69000
2.In reviewing the accounts receivable, the cash receivable value is $ 25700 before the write-off of a $ 2400 account. What is the cash receivable value after the write-off?
$ 23300
$ 2400
$ 25700
$ 28100
3.In 2022 the Novak Corp. had net credit sales of $ 1030000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $ 23200. During 2022, $ 34300 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 5% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $ 243000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
$ 35350.
$ 34300.
$ 23250.
$ 12150.
4.An analysis and aging of the accounts receivable of Splish Brothers Inc. at December 31 reveal these data:
Accounts receivable
$ 3320000
Allowance for doubtful accounts per books before adjustment (credit)
420000
Amounts expected to become uncollectible
492000
What is the cash realizable value of the accounts receivable at December 31 after adjustment?
$ 3320000
$ 2900000
$ 2828000
$ 2408000
5.Blue Spruce Corp. unadjusted trial balance includes the following balances (assume normal balances):
Accounts receivable
$ 1860000
Allowance for doubtful accounts
$ 35800
Bad debts are estimated to be 10% of outstanding receivables. What amount of bad debt expense will the company record?
$ 193200
$ 187830
$ 150200
$ 148070
6.During 2022 Blue Spruce Corp. had sales on account of $ 791000, cash sales of $ 323000, and collections on account of $ 518000. In addition, they collected $ 8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a
$ 588000 increase.
$ 596000 increase.
$ 264100 increase.
$ 273000 increase.
7.The interest on a $ 29000, 15%, 1-year note receivable is
$ 290.
$ 248.
$ 4350.
$ 33350.
8.Tamarisk, Inc. has a 60-day note that carries an annual interest rate of 10%. If the amount of the total interest on the note is equal to $ 540, then what is the principal of the note? (Use 360 days for calculation.)
$ 38880
$ 17280
$ 32400
$ 6750
9.The maturity value of a $ 70800, 9%, 40-day note receivable dated July 3 is (Use 360 days for calculation.)
$ 70800.
$ 77880.
$ 71508.
$ 77172.
10.The financial statements of the Sheridan Company reports net sales of $ 756000 and accounts receivable of $ 67200 and $ 24000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)
22.0 days
9.8 days
44.0 days
34.2 days
11. In the table below the information for four companies is provided.
Company
Accounts Receivable turnover
Average collection period
Wildhorse
12.90
27.15
Lewis
13.10
27.00
Danforth
10.10
33.95
Sarasota
13.80
26.95
Industry Average
13.70
27.90
If Sarasota’s net credit sales are $ 434700, what are its average net accounts receivable?
$ 104095
$ 59989
$ 12606
$ 31500
12.Cullumber Company on July 15 sells merchandise on account to Concord Co. for $ 3900, terms 5/10, n/30. On July 20 Concord Co. returns merchandise worth $ 1100 to Cullumber Company. On July 24 payment is received from Concord Co. for the balance due. What is the amount of cash received?
$ 2800
$ 2660
$ 2605
$ 3900
13.Whispering sells softball equipment. On November 14, they shipped $ 4100 worth of softball uniforms to Marigold Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $ 2200 worth of custom printed bats to be produced in December. On November 30, Marigold Middle School returned $ 500 of defective merchandise. Whispering has received no payments from either school as of month end. What amount will be recognized as accounts receivable, net on the balance sheet as of November 30?
$ 4100
$ 3600
$ 6100
$ 6600
14.Sheffield Corp. had the following items to report on its balance sheet:
Employee advances
$ 1510
Amounts owed by customers for the sale of services (due in 30 days)
3190
Refundable income taxes
1260
Interest receivable
1000
Accepted a formal instrument of credit for services (due in 18 months)
2180
A loan to company president
11400
Dishonored a note for principal and interest which will eventually be collected
1380
Based on this information, what amount should appear in the “Other Receivables” category?
$ 15170
$ 21820
$ 18770
$ 16550
15.Skysong is a corporation that sells breakfast cereal. Based on the accounts listed below, what are Skysong’s total trade receivables?
Income tax refund due
$ 550
Advance due to the company from
the company president
240
3-month note due from Skysong’s main customer
2200
Interest due this month on the above note
150
Due and unpaid from this month’s sales
8520
Due and unpaid from last month’s sales
960
$ 11680
$ 12620
$ 9480
$ 10440
16.Metlock, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $ 180000 and credit sales are $ 1810000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Metlock, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $ 5400 before adjustment?
Bad Debt Expense
10800
Accounts Receivable
10800
Bad Debt Expense
10800
Allowance for Doubtful Accounts
10800
Bad Debt Expense
5400
Allowance for Doubtful Accounts
5400
Bad Debt Expense
5400
17.
Accounts Receivable
5400
Net credit sales for the month are $650000. The accounts receivable balance is $160000. The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis. If the Allowance for Doubtful Accounts has a credit balance of $5300 before adjustment, what is the balance after adjustment?
$13300
$8000
$2700
$8265
18.An aging of a company’s accounts receivable indicates that $ 9500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $ 3500 credit balance, the adjustment to record bad debts for the period will require a
debit to Allowance for Doubtful Accounts for $ 6000.
debit to Bad Debt Expense for $ 6000.
credit to Allowance for Doubtful Accounts for $ 9500.
debit to Bad Debt Expense for $ 9500.
19.Novak Corp. had net credit sales during the year of $ 1116300 and cost of goods sold of $ 424000. The balance in accounts receivable at the beginning of the year was $ 96000 and at the end of the year was $ 148000. What was the accounts receivable turnover?1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $ 69000. If the balance of the Allowance for Doubtful Accounts is an $ 13800 debit before adjustment, what is the balance after adjustment?
$ 82800
$ 13800
$ 55200
$ 69000
2.In reviewing the accounts receivable, the cash receivable value is $ 25700 before the write-off of a $ 2400 account. What is the cash receivable value after the write-off?
$ 23300
$ 2400
$ 25700
$ 28100
3.In 2022 the Novak Corp. had net credit sales of $ 1030000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $ 23200. During 2022, $ 34300 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 5% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $ 243000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
$ 35350.
$ 34300.
$ 23250.
$ 12150.
4.An analysis and aging of the accounts receivable of Splish Brothers Inc. at December 31 reveal these data:
Accounts receivable
$ 3320000
Allowance for doubtful accounts per books before adjustment (credit)
420000
Amounts expected to become uncollectible
492000
What is the cash realizable value of the accounts receivable at December 31 after adjustment?
$ 3320000
$ 2900000
$ 2828000
$ 2408000
5.Blue Spruce Corp. unadjusted trial balance includes the following balances (assume normal balances):
Accounts receivable
$ 1860000
Allowance for doubtful accounts
$ 35800
Bad debts are estimated to be 10% of outstanding receivables. What amount of bad debt expense will the company record?
$ 193200
$ 187830
$ 150200
$ 148070
6.During 2022 Blue Spruce Corp. had sales on account of $ 791000, cash sales of $ 323000, and collections on account of $ 518000. In addition, they collected $ 8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a
$ 588000 increase.
$ 596000 increase.
$ 264100 increase.
$ 273000 increase.
7.The interest on a $ 29000, 15%, 1-year note receivable is
$ 290.
$ 248.
$ 4350.
$ 33350.
8.Tamarisk, Inc. has a 60-day note that carries an annual interest rate of 10%. If the amount of the total interest on the note is equal to $ 540, then what is the principal of the note? (Use 360 days for calculation.)
$ 38880
$ 17280
$ 32400
$ 6750
9.The maturity value of a $ 70800, 9%, 40-day note receivable dated July 3 is (Use 360 days for calculation.)
$ 70800.
$ 77880.
$ 71508.
$ 77172.
10.The financial statements of the Sheridan Company reports net sales of $ 756000 and accounts receivable of $ 67200 and $ 24000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)
22.0 days
9.8 days
44.0 days
34.2 days
11. In the table below the information for four companies is provided.
Company
Accounts Receivable turnover
Average collection period
Wildhorse
12.90
27.15
Lewis
13.10
27.00
Danforth
10.10
33.95
Sarasota
13.80
26.95
Industry Average
13.70
27.90
If Sarasota’s net credit sales are $ 434700, what are its average net accounts receivable?
$ 104095
$ 59989
$ 12606
$ 31500
12.Cullumber Company on July 15 sells merchandise on account to Concord Co. for $ 3900, terms 5/10, n/30. On July 20 Concord Co. returns merchandise worth $ 1100 to Cullumber Company. On July 24 payment is received from Concord Co. for the balance due. What is the amount of cash received?
$ 2800
$ 2660
$ 2605
$ 3900
13.Whispering sells softball equipment. On November 14, they shipped $ 4100 worth of softball uniforms to Marigold Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $ 2200 worth of custom printed bats to be produced in December. On November 30, Marigold Middle School returned $ 500 of defective merchandise. Whispering has received no payments from either school as of month end. What amount will be recognized as accounts receivable, net on the balance sheet as of November 30?
$ 4100
$ 3600
$ 6100
$ 6600
14.Sheffield Corp. had the following items to report on its balance sheet:
Employee advances
$ 1510
Amounts owed by customers for the sale of services (due in 30 days)
3190
Refundable income taxes
1260
Interest receivable
1000
Accepted a formal instrument of credit for services (due in 18 months)
2180
A loan to company president
11400
Dishonored a note for principal and interest which will eventually be collected
1380
Based on this information, what amount should appear in the “Other Receivables” category?
$ 15170
$ 21820
$ 18770
$ 16550
15.Skysong is a corporation that sells breakfast cereal. Based on the accounts listed below, what are Skysong’s total trade receivables?
Income tax refund due
$ 550
Advance due to the company from
the company president
240
3-month note due from Skysong’s main customer
2200
Interest due this month on the above note
150
Due and unpaid from this month’s sales
8520
Due and unpaid from last month’s sales
960
$ 11680
$ 12620
$ 9480
$ 10440
16.Metlock, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $ 180000 and credit sales are $ 1810000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Metlock, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $ 5400 before adjustment?
Bad Debt Expense
10800
Accounts Receivable
10800
Bad Debt Expense
10800
Allowance for Doubtful Accounts
10800
Bad Debt Expense
5400
Allowance for Doubtful Accounts
5400
Bad Debt Expense
5400
17.
Accounts Receivable
5400
Net credit sales for the month are $650000. The accounts receivable balance is $160000. The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis. If the Allowance for Doubtful Accounts has a credit balance of $5300 before adjustment, what is the balance after adjustment?
$13300
$8000
$2700
$8265
18.An aging of a company’s accounts receivable indicates that $ 9500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $ 3500 credit balance, the adjustment to record bad debts for the period will require a
debit to Allowance for Doubtful Accounts for $ 6000.
debit to Bad Debt Expense for $ 6000.
credit to Allowance for Doubtful Accounts for $ 9500.
debit to Bad Debt Expense for $ 9500.
19.Novak Corp. had net credit sales during the year of $ 1116300 and cost of goods sold of $ 424000. The balance in accounts receivable at the beginning of the year was $ 96000 and at the end of the year was $ 148000. What was the accounts receivable turnover?
