FA - CH-11,12,13 &18

Which of the following statements regarding payables and receivables are TRUE?

• A Statement 1 only

• B Statements 1 and 2 only

• C Statements 1 and 3 only

• D Statement 3 only

What charge for receivables expense should appear in the company's statement of profit or loss for the year ended 31 December 20X2?

• A $74,200

• B $51,800

• C $28,000

• D $24,200

What amount should appear in Q's statement of profit or loss for receivables expense for the year ended 30 June 20X3?

• A $12,600

• B $16,600

• C $48,600

• D $30,600

What should be the charge in the statement of profit or loss for the year ended 30 September 20X3 for receivables expense?

• A $42,000

• B $33,925

• C $70,500

• D $32,500

What figure should appear in the company's statement of profit or loss for the year ended 30 June 20X4 for receivables expense?

• A $155,000

• B $364,000

• C $281,000

• D $11,000

A company has received cash for a debt that was previously written off. Which of the following is the correct double entry to record the cash received?

• A Dr. Irrecoverable debts expense Cr. Accounts receivable

• B Dr. Cash Cr. Irrecoverable debts expense

• C Dr. Allowance for receivables Cr. Accounts receivable

• D Dr. Cash Cr. Allowance for receivables

11.7 Which of the following would a decrease in the allowance for receivables result in?

• [a] An increase in liabilities

• [b] A decrease in working capital

• [c] A decrease in net profit

• [d] An increase in net profit

An increase in an allowance for receivables of $8,000 has been treated as a reduction in the allowance in the financial statements. Which of the following explains the resulting effects?

• [a] Net profit is overstated by $16,000, receivables overstated by $8,000

• [b] Net profit understated by $16,000, receivables understated by $16,000

• [c] Net profit overstated by $16,000, receivables overstated by $16,000

• [d] Gross profit overstated by $16,000, receivables overstated by $16,000

What is the total receivables expense for the year?

• [a] $200 debit

• [b] $1,800 debit

• [c] $2,200 debit

• [d] $1,800 credit

A company has been notified that a customer has been declared bankrupt. The company had previously made an allowance for this debt. Which of the following is the correct double entry to account for this new information

• [a] Dr. Irrecoverable debts Cr. Receivables

• [b] Dr. Receivables Cr. Irrecoverable debts

• [a] Dr. Allowance for receivables Cr. Receivables

• [a] Dr. Receivables Cr. Allowance for receivables