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WorksheetsAccounts Receivable
Total questions: 20
Worksheet time: 19mins
Notes or accounts receivables that result from sales transactions are often called
non-trade receivables.
trade receivables.
merchandise receivables.
sales receivables.
Notes or accounts receivable from officers, employees, or affiliated companies should be reported on the balance sheet
As assets, either current or noncurrent, but separately from other receivables.
As noncurrent assets only.
As trade notes and accounts receivable if they otherwise qualify as current assets.
As offsets to capital.
When does an account become uncollectible?
when the debtor fails to pay an account according to a sales contract
when the debtor fails to pay a note on the due date
there is no general rule for when an account becomes uncollectible
at the end of the fiscal year
The type of account and normal balance of Allowance for Doubtful Accounts is
contra asset, credit
liability, credit
asset, debit
expense, debit
Under the allowance method, writing off an uncollectible account
affects only income statement accounts.
is not acceptable practice.
affects only balance sheet accounts.
affects both balance sheet and income statement accounts.
If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?
Uncollectible Accounts Expense
Allowance for Doubtful Accounts
Accounts Receivable
Interest Expense
A company uses the estimate of sales method to account for uncollectible accounts. When the firm writes off a specific customer's account receivable
total current assets are reduced
total expenses for the period are increased
total current assets are reduced and total expenses are increased
there is no effect on total current assets or total expenses
Using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a
credit to Bad Debt Expense
credit to Accounts Receivable
debit to Allowance for Doubtful Accounts
debit to Accounts Receivable
The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles
will increase income in the period it is collected.
will decrease income in the period it is collected.
does not affect income in the period it is collected.
requires a correcting entry for the period in which the account was written off.
A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance based on
Direct write-off.
Aging the trade receivable accounts.
Credit sales.
Specific accounts determined to be uncollectible.
On January 13, 2022, Clip Co. sold on account goods with selling price of ₱300,000 with terms 2/10, n/30. Freight costs amounted to ₱5,000. The goods were received by the buyer on January 15, 2022. Clip Co. collected the receivable on January 23, 2022. How much net cash did Clip received from the buyer if the terms are FOB destination, freight prepaid?
₱289,000
₱294,000
₱299,000
₱305,000
On January 13, 2022, Clip Co. sold on account goods with selling price of ₱300,000 with terms 2/10, n/30. Freight costs amounted to ₱5,000. The goods were received by the buyer on January 15, 2022. Clip Co. collected the receivable on January 23, 2022. How much net cash did Clip received from the buyer if the terms are FOB destination, freight collect?
₱289,000
₱294,000
₱299,000
₱305,000
On January 13, 2022, Clip Co. sold on account goods with selling price of ₱300,000 with terms 2/10, n/30. Freight costs amounted to ₱5,000. The goods were received by the buyer on January 15, 2022. Clip Co. collected the receivable on January 23, 2022. How much net cash did Clip received from the buyer if the terms are FOB shipping point, freight collect?
₱289,000
₱294,000
₱299,000
₱305,000
On January 13, 2022, Clip Co. sold on account goods with selling price of ₱300,000 with terms 2/10, n/30. Freight costs amounted to ₱5,000. The goods were received by the buyer on January 15, 2022. Clip Co. collected the receivable on January 23, 2022. How much net cash did Clip received from the buyer if the terms are FOB shipping point, freight prepaid?
₱289,000
₱294,000
₱299,000
₱305,000
On January 1, 2022, Wack Co. sells inventory with a list price of ₱100,000 on account under credit terms of 15%, 20%, 3/10, n/30. Under the net method, how much should be debited to Accounts receivable on January 1, 2022?
₱100,000
₱85,000
₱68,000
₱65,960
Allowance for Doubtful Accounts has a credit balance of ₱500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are ₱600,000, the amount of the adjusting entry to record the provision for doubtful accounts is
₱18,500
₱18,000
₱17,500
none of the above
An estimate based on an analysis of receivables shows that ₱780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of ₱110. After preparing the adjusting entry at the end of the year, the balance in the Allowance for Doubtful Accounts is
₱110
₱670
₱780
₱890
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of ₱450,000 and Allowance for Doubtful Accounts has a balance of ₱25,000. What is the net realizable value of the accounts receivable?
₱25,000
₱450,000
₱425,000
₱455,000
ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of ₱2,400. During 2022, ABC wrote-off accounts receivable totaling ₱1,800 and made credit sales of ₱100,000. After the adjusting entry, the December 31, 2022, balance in the Uncollectible Accounts Expense would be
₱1,200
₱3,600
₱3,000
₱7,200
At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of ₱540. During the year, ₱350 of previously written-off accounts were reinstated and accounts totaling ₱410 are written-off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be
₱350
₱480
₱410
₱600
