1. Under the accrual method, when a specific account is recognized
of total assets will remain unchanged. net profit will decrease. total assets will increase. total assets will decrease. 2. Blossom Company uses the percentage of receivables method to
register of expenses related to bad debts. The accounts receivable balance is
$310,000 and credit sales are $3,110,000. Management estimates that 4%
accounts receivable will be uncollectible. what setting input
Blossom Company will make a provision for bad debts
have a credit balance of $3,100 before adjustment?
Bad Debt Expenses
9300
Invoices to receive
9300
Bad Debt Expenses
9300
Invoices to receive
9300
Bad Debt Expenses
9300
Bad Debt Expenses
9300
Invoices to receive
9300
Invoices to receive
9300
Bad Debt Expenses
9300
Allowance for doubtful accounts
9300
Bad Debt Expenses
9300
Allowance for doubtful accounts
9300
Bad Debt Expenses
9300
Bad Debt Expenses
9300
Allowance for doubtful accounts
9300
Allowance for doubtful accounts
9300
Bad Debt Expenses
12400
Invoices to receive
12400
Bad Debt Expenses
12400
Invoices to receive
12400
Bad Debt Expenses
12400
Bad Debt Expenses
12400
Invoices to receive
12400
Invoices to receive
12400
Bad Debt Expenses
12400
Allowance for doubtful accounts
12400
Bad Debt Expenses
12400
Allowance for doubtful accounts
12400
Bad Debt Expenses
12400
Bad Debt Expenses
12400
Allowance for doubtful accounts
12400
Allowance for doubtful accounts
12400
3. Using the percentage of receivables method to record errors
debt load, uncollectible bills are estimated at $55,000. If the
the balance of the allowance for doubtful accounts is a debit of $11,000
before adjustment, what is the balance after adjustment? $55,000 $11,000 $44,000 $66,000 4. Novak Corp. does not charge sales tax separately on cash
registration. February’s total earnings totaled $42,718. If the
the sales tax rate is 6%, the amount of which must be remitted to the state for
February sales taxes? $2418 Cannot be determined. $2,563 $2,410 5. Splish’s Boutique has a total income for the month of $43,890
including sales tax. If the sales tax rate is 5%, what are the
Splish sales for the month? $41,800 $41,696 $43,890 Cannot be determined. 6. Sunland Company uses the percentage of receivables method to
register of expenses related to bad debts. The accounts receivable balance is
$310,000 and credit sales are $1,240,000. Management estimates that 6%
accounts receivable will be uncollectible. what setting input
the Sunland Company will pay if the allowance for bad debts
have a credit balance of $3,100 before adjustment?
Bad Debt Expenses
12400
Invoices to receive
12400
Bad Debt Expenses
12400
Invoices to receive
12400
Bad Debt Expenses
12400
Bad Debt Expenses
12400
Invoices to receive
12400
Invoices to receive
12400
Bad Debt Expenses
6200
Allowance for doubtful accounts
6200
Bad Debt Expenses
6200
Allowance for doubtful accounts
6200
Bad Debt Expenses
6200
Bad Debt Expenses
6200
Allowance for doubtful accounts
6200
Allowance for doubtful accounts
6200
Bad Debt Expenses
21700
Allowance for doubtful accounts
21700
Bad Debt Expenses
21700
Allowance for doubtful accounts
21700
Bad Debt Expenses
21700
Bad Debt Expenses
21700
Allowance for doubtful accounts
21700
Allowance for doubtful accounts
21700
Bad Debt Expenses
15500
Allowance for doubtful accounts
15500
Bad Debt Expenses
15500
Allowance for doubtful accounts
15500
Bad Debt Expenses
15500
Bad Debt Expenses
15500
Allowance for doubtful accounts
15500
Allowance for doubtful accounts
15500
Answer 1
1.
The answer is option A – Total assets will remain unchanged
The realization of the amortization is
Allowance for doubtful accounts Dr
Invoices to receive
when writing the log, this is the value already omitted. So no
impact on asset value and net income. When entering the
balance receivable and reduced provision balance. So equal impact
in the balance.
of them.
The answer is option B
Entry will be
Bad Debt Expenses A/c 9300
Doubtful account provision.
Under the percentage method on receivables, the estimated amount will be
settle with the balance of the provision account
Estimated balance = 310,000 x 4% = 12,400
Credit balance = 3100
Then, this credit balance will be reduced by the estimated amount. if
has a debit balance will be added to the estimated value.
3.
The answer is option D – 66000
The debit balance will be added to the estimated amount
55,000 + 11,000 = 66,000
If you have a credit balance, it will be deducted.
4.
The answer is that it is impossible to determine it.
The value mentioned there does not say that it includes or
without taxes. It therefore cannot be determined from the information
Received.
5.
The answer is option A – 41800
Here TTC = 43890
Tax rate = 5%
So without tax will be = (43890/105) x 100
= 41800
Here = 105 = 100 + tax rate
6.
The answer is option D –
Bad debts 15500
Allowance for bad debts 15500
The value found by
Accounts receivable balance x 6% = 310,000 x 6% = 18,600
provision account credit balance = 3100
So net balance = 18600 – 3100 = 15500
if the provision account has a credit balance, it will draw with the
estimated value and if you have a debit balance, you will add the estimated value
assess.