WorksheetsAccounts Receivable
Total questions: 15
Worksheet time: 8mins
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
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
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
Which of the following transactions would take place in the journal when a customer buys a good or service on credit?
Sales account is debited; cash account is credited
Accounts receivable account is debited; cash account is credited
Accounts receivable account is debited; sales return account is credited
Accounts receivable account is debited; sales account is credited
Which of the following terms defines when a customer buys a good or service on credit and agrees to pay at a later date?
Subsidiary ledger
operating activities
Accounts receivable
Direct write- off approach
Which of the following is a balance sheet account which reduces the reported amount of accounts receivable?
Allowance for doubtful accounts
Allowance for tax credits
Schedule of bad debts
Schedule of accounts receivable
Which of the following transactions would take place when an account becomes uncollectible and is written off under the allowance method?
Bad debts account is debited; accounts receivable is credited
Accounts receivable account is debited; sales return account is credited
Accounts receivable account is debited; an allowance for doubtful accounts is credited
Allowance of doubtful accounts is debited; accounts receivable is credited
Which of the following transactions would take place in the journal when using the direct write-off approach for an uncollectible account?
Sales account is debited; cash account is credited
Sales return account is debited; cash account is credited
Accounts receivable account is debited; sales return account is credited
Bad debts expense account is debited; accounts receivable is credited
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 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.
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
