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WorksheetsReceivables and Sales
Total questions: 12
Worksheet time: 7mins
On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if the buyer pays on June 8?
720
784
792
800
On June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the goods. How much should the seller expect to receive if the buyer pays on June 8.
692
693
700
792
A company estimates that $20,000 of its $500,000 of account receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a _____________ to the Allowance for Doubtful Accounts.
debit of $12,000
credit of $12,000
debit of $28,000
credit of$28,000
Accounts Receivable refer to the amounts owed by customers.
True
False
The uncollectible amount from Accounts Receivable is known as bad debts.
True
False
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
State a proper credit term if the debtors will be given 2% discounts if making payment in 10 days after the transaction date and the credit period is 45 days.
0.02/10 ; no/45
2/10 ; n/eom
2/10 ; n/45
2%/10 ; n/45
Two methods of accounting for uncollectible accounts are the
allowance method and the accrual method.
direct write-off method and the accrual method.
direct write-off method and the allowance method.
allowance method and the net realizable method.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited
when a credit sale is past due.
when an account is determined to be uncollectible.
at the end of each accounting period.
whenever a pre-determined amount of credit sales have been made.
Bad debts can be classified as:
a current asset
a current liability
an expense
a revenue
To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a
debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
debit to Loss on Credit Sales Revenue and a credit to Accounts Receivable.
