Accounting I Unit 6 Review

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:

• debit Uncollectible Accounts Expense, $1,750; credit Allowance for Uncollectible Accounts, $1,750.
• debit Uncollectible Accounts Expense, $2,100; credit Allowance for Uncollectible Accounts, $2,100.
• debit Allowance for Uncollectible Accounts, $1,750; credit Uncollectible Accounts Expense, $1,750.
• debit Allowance for Uncollectible Accounts, $2,100; credit Uncollectible Accounts Expense, $2,100.

Steve's Auto Parts purchased a display case on January 1, 2019, for $3,400. The estimated salvage (disposal) value is $200 and the estimated useful life is 10 years. What is the accumulated straight-line depreciation at the end of 2020?

• 320
• 640
• 680
• 960

Creative Art Supplies purchased a new display easel on January 1, 20XX, for $850. The estimated salvage (disposal) value is $50 and the estimated useful life is 5 years. What is the annual depreciation expense?

• 850
• 170
• 160
• 50

NC Office Supply purchased a heating system on September 1, 2019, for $18,500. The estimated salvage (disposal) value is $500 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2021?

• 1800
• 2400
• 4200
• 5400

The Sawyer Company estimates $1,500 of the current year's sales will eventually be uncollectible. The Allowance for Uncollectible Accounts balance is $200. The journal entry for recording the adjustment for uncollectible accounts is:

• debit Allowance for Uncollectible Accounts, $1,500; credit Uncollectible Accounts Expense, $1,500.
• debit Uncollectible Accounts Expense, $1,500; credit Allowance for Uncollectible Accounts, $1,500.
• debit Allowance for Uncollectible Accounts, $1,300; credit Uncollectible Accounts Expense, $1,300.
• debit Uncollectible Accounts Expense, $1,300; credit Allowance for Uncollectible Accounts, $1,300.

Mountain Business Services purchased a computer on January 1, 2019, for $3,600. The estimated salvage (disposal) value is $200 and the estimated useful life is 5 years. What is the annual depreciation expense?

• 200
• 360
• 680
• 720

Burger Boy Diner purchased a commercial oven on August 1, 2019, for $6,800. The estimated salvage (disposal) value is $500 and the estimated useful life is 7 years. What is the depreciation expense for 2019?

• 300
• 375
• 405
• 900

Hair Design Supply Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $1,200,000. In the past, actual uncollectible accounts expense has been about 2% of total sales on account. What is the estimated uncollectible accounts expense for the year?

• 240
• 2400
• 24000
• 240000

Joe's Taxi Service purchased a new taxi on January 1, 20XX, for $22,000.00. The estimated salvage (disposal) value is $1,000.00 and the estimated useful life is 3 years. What is the annual depreciation expense?

• 14333.33
• 7000
• 3500
• 1000

Steve's Auto Repair has depreciation expense of $3,500 at the end of the fiscal year. The entry to journalize the depreciation expense is:

• debit Accumulated Depreciation, $3,500; credit Depreciation Expense, $3,500.
• debit Depreciation Expense, $3,500; credit Accumulated Depreciation, $3,500.
• debit Depreciation Expense, $3,500; credit Equipment, $3,500.
• debit Equipment, $3,500; credit Accumulated Depreciation, $3,500.