At the beginning of the year, the balance in the allowance for doubtful account is a credit of $540.

During the year, $650 of previously written-off accounts was reinstated and accounts totalling $410 are written-off as uncollectible. The end of the year balance in the allowance for doubtful accounts should be a. $350 b. $410 c. $600 d. $480 $540 None of the above. The answer should be $780. At the end of a period, before the accounts are adjusted, Allowance for Doubtful accounts has a debit balance of $500, and the net sales on account for the period total $800,000. If uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts expense is $8,500. FALSE. $8,000 only. ($800,000 x 1%) Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? A. debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400 B. debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400 C. debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400 D. debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400 The maturity value of a $20,000, 9%, 40-day note receivable dated July 3 is a. $21,800 b. $20,200 c. $20,000 d. $22,000 $20,000 + ($20,000 x 9% x 40/360) = $20,200 The estimate based on sales method violates the matching principle FALSE The receivables turnover ratio is computed by dividing total gross sales by the average net receivables during the year FALSE

Both accounts receivable and notes receivable represent claims that are expected to be collected in cash TRUE On November 1, Kim Company accepted a 3-month note receivable as payment for services provided to Chu Company. The terms of the note were $8,000 face value and 6% interest. Him Company closes its books at December 31 and does not use reversing entries. On February 1, the journal entry to record the collection of the note should include a credit to a. Interest Revenue for $120 b. Notes Receivable for $8,120 c. Interest Revenue for $40 d. Interest Receivable for $120 An estimated 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 a. $780 b. $110 c. $890 d. $670