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WorksheetsAccounting Chapter 9
Total questions: 15
Worksheet time: 4hrs 45mins
Which of the following items is a trade receivable?
Claims in litigation مستحقات ناتجه عن تقاضي
Loans to employees
Amounts due from customers
Receivables from affiliates مستحقات من الشركات التابعة
Uncollectible account expense:
Should not occur if a company properly investigates customers based on credit history
Is the amount an entity must pay whenever a customer fails to pay his or her account
Is the amount an entity must pay to a collection agent to recover amounts on overdue accounts
Represents the loss in accounts receivable that eventually turn out to be uncollectible
A method of estimating uncollectible accounts that emphasizes asset valuation rather than income measurement is the allowance method based on
Aging of receivables
Direct write-off
Gross credit sales
Net credit sales
The advantage of relating bad debt expense to accounts receivable is that this approach
Does not require knowledge of the balance in the allowance for doubtful accounts
Gives a reasonably correct amount of receivables in the balance sheet
Does not require estimates of uncollectible accounts
Relates bad debt expense to the period of sale
Which method of recording bad debt loss is consistent with accrual accounting?
Allowance method
Direct write-off method
Percentage of sales method
Percent of accounts receivable method
Under the allowance method, the entry to recognize bad debt expense
Increases net income
Decreases current assets
Has no effect on current assets
Has no effect on net income
Under the allowance method, the allowance for doubtful accounts will decrease when
Specific account receivable is collected
Account previously written off is collected
Specific uncollectible account is written off
Account previously written off becomes collectible
Under the allowance method, the entry to record the write-off of a specific account will
Decrease both accounts receivable and net income
Increase the allowance for doubtful accounts and decrease the net income
Decrease both accounts receivable and the allowance for doubtful accounts
Decrease accounts receivable and increase the allowance for doubtful account
Under the allowance method, entries at the time of collection of an account previously written off would
Increase net income
Have no effect on net income
Decrease the allowance for doubtful accounts
Have no effect on the allowance for doubtful accounts
Under the direct write-off method, uncollectible accounts expense is recognized
As a percentage of net sales during the period
As a percentage of net credit sales during the period
As indicated by aging the accounts receivable at the end of the period
As specific accounts receivable are determined to be worthless
$ 500,000
$ 520,000
$ 50,000
$ 480,000
$ 360,000
$ 50,000
$ 390,000
$ 310,000
Which of the following should be recorded in accounts receivable?
Receivables from officers
Receivables from Subsidies مستحقات من شركات تابعه
Dividends Receivables مستحقات توزيعات ارباح
Non of the above
Trade accounts receivable are valued and reported on the balance sheet
in the investment section
at gross amounts less sales returns and allowances
at net realizable value.
only if they are not past due.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited
when a credit sale is past due.
at the end of each accounting period
whenever a pre-determined amount of credit sales have been made.
when an account is determined to be uncollectible.
