Accounting 6.0 Test Review

Front

What is the depreciation expense for a paint display case purchased for $1,350 with a salvage value of $150 and a useful life of five years?

Back

$200

Front

On Your Mark Writing Supplies received a check for $225.00 from Pen & Paper, whose account was previously written off. What is the correct entry to re-open the account for Pen & Paper? Options: debit Accounts Receivable/Pen & Paper, $225.00; credit Allowance for Uncollectible Accounts, $225.00. debit Accounts Receivable/Pen & Paper, $225.00; credit Uncollectible Accounts Expense, $225.00. debit Uncollectible Accounts Expense, $225.00; credit Accounts Receivable/Pen & Paper, $225.00. debit Uncollectible Accounts Expense, $225.00; credit Allowance for Uncollectible Accounts, $225.00.

Back

debit Accounts Receivable/Pen & Paper, $225.00; credit Allowance for Uncollectible Accounts, $225.00.

Front

Of the current year's sales, $2,100 will eventually be uncollectible. The Allowance for Uncollectible Accounts balance is $350. The journal entry for recording the adjustment for uncollectible accounts, based on the percent of sales method, is:

Back

debit Uncollectible Accounts Expense, $2,100; credit Allowance for Uncollectible Accounts, $2,100.

Front

What is the annual depreciation expense for a cash register purchased for $2,500 with a salvage value of $100 and a useful life of 10 years?

Back

$240

Front

Steve’s Auto Shop uses the direct write-off method when handling uncollectible accounts receivable. John Taylor owes $375 on account. Steve’s Auto Shop has determined this account to be uncollectible. The correct entry for writing off this account is:

Back

debit Uncollectible Accounts Expense, $375; credit Accounts Receivable/John Taylor, $375.

Front

What is the estimated uncollectible accounts expense for Western Textile Company if total sales on account are $5,275,000.00 and uncollectible accounts expense is about 1% of total sales?

Back

$52,750.00

Front

What is the maturity date of a $12,000, 180-day note at 9% signed by Grandfather Tours on March 1, using a 360-day year?

Back

August 28

Front

Western Textile Company estimates its uncollectible accounts expense for the year to be $3,575. The correct entry to record the estimated uncollectible accounts expense is:

Back

debit Uncollectible Accounts Expense, $3,575; credit Allowance for Uncollectible Accounts, $3,575.

Front

High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 20XX. The maturity value of the note is:

Back

$82,500.

Front

Sports Warehouse received a payment in the amount of $697.50 for a note receivable. Interest on the note receivable was $47.50. The journal entry to record the receipt of payment of the note receivable is:

Back

debit Cash, $697.50; credit Interest Income, $47.50, Notes Receivable, $650.00.