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Worksheets6.02 Doubtful Accounts Practice
Total questions: 15
Worksheet time: 8mins
On Your Mark Writing Supplies received a check for $225.00 from Pen & Paper, whose account was previously written off. On Your Mark Writing Supplies uses the Allowance Method for uncollectible accounts. The correct entry to re-open the account for Pen & Paper is:
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.
On Your Mark Writing Supplies estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $200,000.00. 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?
$40
$400
$4,000
$400,000
Best Western Hotel estimates its uncollectible accounts expense for the year to be $8,575. The correct entry to record the estimated uncollectible accounts expense is:
debit Uncollectible Accounts Expense, $8,575; credit Accounts Receivable, $8,575.
debit Uncollectible Accounts Expense, $8,575; credit Allowance for Uncollectible Accounts, $8,575.
debit Accounts Receivable, $8,575; credit Uncollectible Accounts Expense, $8,575.
debit Allowance for Uncollectible Accounts, $3,575; credit Uncollectible Accounts Expense, $8,575.
The Loft received a check for $925 from Amelia Rose, whose account was previously written off. The Loft uses the allowance method when handling uncollectible accounts receivable. The correct entry to reopen the account for Amelia Rose is:
debit Accounts Receivable/Amelia Rose, $925; credit for Uncollectible Accounts, $925.
debit Accounts Receivable/Amelia Rose, $925; credit Uncollectible Accounts Expense, $925.
debit Uncollectible Accounts Expense, $925; credit Accounts Receivable/Amelia Rose $925.
debit Uncollectible Accounts Expense, $925; credit Allowance for Uncollectible Accounts, $925.
Kitchen Supply Warehouse uses the direct write-off method when handling uncollectible accounts receivable. Coffey's Diner owes $450 on account. Kitchen Supply Warehouse has determined this account to be uncollectible. The correct entry for writing off this account is:
debit Uncollectible Accounts Expense, $450; credit Allowance for Uncollectible Accounts, $450.
debit Accounts Receivable/Coffey's Diner, $450; credit Uncollectible Accounts Expense, $450.
debit Accounts Receivable/Coffey's Diner, $450; credit Allowance for Uncollectible Accounts, $450.
debit Uncollectible Accounts Expense, $450; credit Accounts Receivable/Coffey's Diner, $450.
Watch Limited Company 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 10% of total sales on account. What is the estimated uncollectible accounts expense for the year?
$300
$3,000
$30,000
$30
With each sale on account, a business takes the risk that the customer will never pay the amount owed.
True
False
Some businesses refer to uncollectible accounts as __.
cliff hangers
doubtful accounts
unpaid debts
uncollectible debts
When journalizing the adjusting entry to record uncollectible accounts what account is credited?
Uncollectible Accounts Expense
Accounts Receivable
Allowance for Uncollectible Accounts
Notes Receivable
The account Allowance for Uncollectible Accounts is classified as a(n) __.
Liability
Contra Liability
Asset
Contra Asset
Allowance for Uncollectible Accounts is related to which account?
Accounts Receivable
Notes Receivable
Cash
Accounts Payable
The percent of sales method assumes that a percent of credit sales will become uncollectible.
True
False
Andy Tree Serviceestimates it's uncollectible accounts expense for the year to be $9,500, what is the entry needed to record the estimated uncollectibe accounts expense?
debit Uncollectible Accounts Expense, $9,500; credit Accounts Receivable, $9,500.
debit Uncollectible Accounts Expense, $9,500; credit Allowance for Uncollectible Accounts, $9,500
debit Accounts Receivable, $9,500; credit Uncollectible Accounts Expense, $800.
debit Allowance for Uncollectible Accounts, $9.500; credit Uncollectible Accounts Expense, $9.500.
The Mariott uses the direct write of method and had previously written off Lands Ahoy Sailing Groups Account totaling $970. Mariott received a check covering the total account balance, what is the correct entry to reopen the account for Lands Ahoy?
debit Uncollectible Accounts Expense $970; credit Accounts Receivable/Lands Ahoy $970
debit Uncollectible Accounts Expense $970; Credit Allowance for Uncollectible Accounts $970
debit Accounts Receivable/Lands Ahoy $970; Credit Uncollectible Accounts Expense $970
debit Accounts Receivalbe/Lands Ahoy $970; credit Allowance for Uncollectible Accounts $970
Andy's Supplies 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.
