Exam (elaborations)
Financial Accounting Exam
- Course
- Institution
Financial Accounting Exam ...
[Show more]
Content preview
Financial Accounting Exam 2 2024-2025Which of the following accounts is debited when a company provides services on
account? - ANS Accounts Receivable
Which of the following transactions would result in an account receivable? - ANS
Providing services to customers on account.
The amount of cash owed to the company by its customers from the sale of products or
services on account is known as: - ANS Accounts Receivable.
A sales discount is recorded by the seller as a(n): - ANSWER Contra revenue.
On January 18, a company performs services for a customer and establishes the
customer's account receivable with a debit for $500. The company offers the customer
terms 2/10, n/30. Which of the following would be recorded when the customer remits
payment on January 25? - ANSWER Debit Sales Discount for $10.
Which of the following is the term for the seller decreasing customer's balance due
based on some deficiency in the company's product or service? - ANSWER Sales
Allowance.
On August 4, Sanders provides services to Frederickson for $5,000, terms 3/10, n/30.
Frederickson pays for the services on August 12. What amount would Sanders record
as revenue on August 4? - ANSWER $5,000.
On August 4, Sanders provides services to Frederickson for $5,000, terms 3/10, n/30.
Frederickson pays for the services on August 12. What is the amount of net revenues
(total revenue minus sales discounts) as of August 12? - ANSWER $4,850.
, The entry to record the estimate for uncollectible accounts includes: - ANSWER A debit
to Bad Debt Expense.
Allowance Method for Uncollectible Accounts Under the allowance method for
uncollectible accounts, the balance of Allowance for Uncollectible Accounts is
increased when: - ANSWER Future bad debts are estimated.
The Accounts Receivable balance for Schmidt Company is $100,000, its adjusted
balance in Allowance for Uncollectible Accounts is $4,000, and its bad debt expense is
$3,800. The net amount of accounts receivable is: - ANSWER $96,000.
During its first year of operations, a company provides for estimated future uncollectible
accounts in the amount of $5,600. How much would be reported as bad debt expense in
the current year's income statement? - ANSWER $5,600.
If the allowance method of accounting for uncollectible accounts is used and a specific
account is written off: - ANSWER Net accounts receivable do not change
If a firm uses the allowance method of accounting for uncollectible accounts and then
collects cash on an account receivable which it previously wrote off: - ANSWER There is
no change in total assets
The effect of writing off a specific account receivable is: - ANSWER A reduction in the
Allowance for Uncollectible Accounts
Accounts Receivable ending balance on December 31 is $80,000. Assume that the
unadjusted balance of Allowance for Uncollectible Accounts is a debit balance of $500,
and that the company estimates that 7% of accounts receivable will not be collected.
Bad debt expense recorded on December 31 will be: - ANSWER $6,100
Accounts Receivable balance on December 31 is $80,000. Assume the Allowance for
Uncollectible Accounts has an unadjusted credit balance of $500 and the company
estimates it will not collect 7% of accounts receivable. Bad debt expense recorded on
December 31 will be: - ANSWER $5,100
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now