Practice Quiz 5B
Complete the following quiz for the lesson: Sales Revenue
The allowance method of accounting for uncollectible accounts receivable records bad debt expense for a period based upon an estimate of the uncollectibility of a company's ending accounts receivable plus or minus the under or overestimation of the previous period 's estimated uncollectible accounts. This method complies with the matching priciple and is required under GAAP. *
1 point
Under the allowance method a company's end of the year adjusting entry to record bad debt expense is made to the following accounts: *
1 point
The Allowance for Uncollectible Accounts Receivable account *
1 point
Under the allowance method a company's writeoff of an uncollectible account receivable during the period would include entries to the following accounts: *
1 point
A credit balance in the Allowance for Uncollectible Accounts Receivable account at the end of the year prior to any adjusting entry for the current year's uncollectible accounts receivable means the prior year's estimated uncollectible accounts receivables were *
0 points
If a company has a debit balance in the Allowance for Uncollectible Accounts Receivable before any year-end adjustment and fails to make an adjusting entry to record estimated uncollectible accounts receivable at the end of a period, then this error *
1 point
If a company's 12/1/X3 balance of Accounts Receivable is \$40,000 and the balance of the Allowance for Uncollectable Accounts Receivable is a debit balance of \$1,500 before any year-end adjustment, the adjustment entry required given uncollectable accounts receivable are estimated at 10% of the balance of Accounts Receivable would require a debit to *
1 point
*
0 points
Before adjusting for a company's uncollectible accounts receivable at the end of the period, assume its Accounts Receivable balance totals \$80,000 and the Allowance for Uncollectible AIR has a credit balance of \$2,300. If 6% of Accounts Receivable are estimated to be uncollectible, then the balance of the Allowance for Uncollectible AIR account after adjustment for bad debt expense should be *
1 point
An entry to record a sale to a customer who uses a credit card to pay will typically include *
1 point
Chang's Chinese Restaurant accepts VISA card payment from a customer for \$20 electronically processed for immediate credit to their bank account. Chang is charged a 3% fee on processed transactions. The journal entry to record this receipt would include a debit to *
1 point