Accounting Obj 6, Part 2

Legal Eagles Law Firm uses the direct write-off method when handling uncollectible accounts receivable. Joe Coffey owes $250 on account. Legal Eagles Law Firm has determined this account to be uncollectible. The correct entry for writing off this account is

• debit Accounts Receivable/Joe Coffey, $250; credit Allowance for Uncollectible Accounts, $250

• debit Accounts Receivable/Joe Coffey, $250; credit Uncollectible Accounts Expense, $250

• debit Uncollectible Accounts Expense, $250; credit Allowance for Uncollectible Accounts, $250

• debit Uncollectible Accounts Expense, $250; credit Accounts Receivable/Joe Coffey, $250

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

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

• debit Accounts Receivable/John Taylor, $375; credit Allowance for Uncollectible accounts, $375

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

• debit Uncollectible Accounts Expense, $375; credit Allowance for Uncollectible Accounts, $375

Pigskin Sports estimates its uncollectible accounts expense for the year to be $850. The correct entry to record the estimated uncollectible accounts expense is

• debit Uncollectible Accounts Expense, $850; credit Accounts Receivable, $850

• debit Uncollectible Accounts Expense, $850; credit Allowance for Uncollectible Accounts, $850

• debit Accounts Receivable, $850; credit Uncollectible accounts Expense, $850

• debit Allowance for Uncollectible Accounts, $850; credit Uncollectible Accounts Expense, $850

Calloway Golf Design estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $300,000. In the past, actual uncollectible accounts expense has been about 1% of total sales of account. What is the estimated uncollectible accounts expense for the year?

• $30

• $300

• $3,000

• $30,000

Pet Food Wholesale estimates its uncollectible accounts expense for the year to be $1,500. The correct entry to record the estimated uncollectible accounts expense is

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

• debit Uncollectible Accounts Expense, $1,500; credit Accounts Receivable, $1,500

• debit Accounts Receivable, $1,500; credit Uncollectible Accounts Expense, $1,500

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

Bright Lites Electrical Services uses the write-off method when handling uncollectible accounts receivable. Taylor Electricians owes $695 on account. Bright Lites Electrical Services determined this account to be uncollectible. The correct entry for writing off this account is

• debit Accounts Receivable/Taylor Electricians, $695; credit Allowance for Uncollectible Accounts, $695

• debit Accounts Receivable/Taylor Electricians, $695; credit Uncollectible Accounts Expense, $695

• debit Uncollectible Accounts Expense, $695; credit Accounts Receivable/Taylor Electricians, $695

• debit Uncollectible Accounts Expense, $695; credit Allowance for Uncollectible Accounts, $695

Maple Tree Candy Factory estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $185,000. In the past, actual uncollectible accounts expense has been about 0.5% of total sales on account. What is the estimated uncollectible accounts expense for the year?

• $19.40

• $63.75

• $925.00

• $3,250

Steve's Auto Parts purchased a display case on January 1, 20XX, 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 20XX?

• $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, 20XX, 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 20XX?

• $1,800

• $2,400

• $4,200

• $5,400