FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY
INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column.
|
|
|
For
|
|
|
Answers
|
Scoring
|
|
0. The party purchasing a company's receivables is called a(n) ...................
|
factor
|
0. ____
|
|
1. Allowance for Doubtful Accounts has a credit balance of $3,000 at
the end of the year, before adjustments. Sales for the year amounted
to $1,950,000, and sales returns and allowances amounted to $50,000.
If uncollectible accounts expense is estimated at 1% of net sales,
the amount of the appropriate adjusting entry will be ..................................
|
$
|
1. ____
|
|
2. If, instead of a percentage of net sales, the adjusting entry in Question 1
is based on an analysis of receivables that indicates doubtful accounts
of $10,500, the amount of the adjustment will be ........................................
|
$
|
2. ____
|
|
3. Allowance for Doubtful Accounts has a debit balance of $500 at the end
of the year, before adjustment. If an analysis of receivables indicates
doubtful accounts of $9,000, the amount of the appropriate adjusting
entry will be ..........................................................................................................
|
$
|
3. ____
|
|
4. The maturity value of a $75,000, 180-day, 4% note receivable is ............
|
$
|
4. ____
|
|
5. In writing off an uncollectible account by the direct write-off method,
the account credited is .......................................................................................
|
$
|
5. ____
|
|
6. At the end of the fiscal year, after the accounts are closed, Accounts
Receivable has a balance of $900,000, and Allowance for Doubtful
Accounts has a balance of $75,000. What is the expected net realizable
value of the receivables? ..................................................................................
|
$
|
6. ____
|
|
7. Where on the balance sheet would receivables that are expected to be realized in cash within one year be reported? ..............................................
|
|
7. ____
|
|
8. Allowance for Doubtful Accounts is listed on the appropriate financial
statement in the subsection titled .....................................................................
|
|
8. ____
|
|
9. Notes receivable expected to be collected in 1 ½ years are listed on the
financial statements in the subsection titled ..................................................
|
|
9. ____
|
|
10. If the receivable turnover is 10, how many days are the receivables
outstanding, on the average? ...........................................................................
|
|
10. ____
|
|
|
|
|
PROBLEM 1-ANALYSIS OF TRANSACTIONS AND ADJUSTMENTS
INSTRUCTIONS: In recording the selected transactions and adjustments, indicate the titles of the general
ledger accounts to be debited and credited by inserting in the appropriate column the letters that correspond to the account titles listed.
ACCOUNTS
A. Accounts Payable E. Interest Expense I. Misc. Administrative Expense
B. Accounts Receivable F. Interest Revenue J. Notes Payable
C. Allowance for Doubtful Accounts G. Interest Payable K. Notes Receivable
D. Cash H. Interest Receivable L. Bad Debt Expense
|
|
|
For
|
|
For
|
|
TRANSACTIONS
|
Debit
|
Scoring
|
Credit
|
Scoring
|
|
0. Received the final payment on a promissory note .....................................
|
D
|
0. ____
|
K,F
|
0. ____
|
|
1-2. Recorded the adjusting entry for estimated uncollectible accounts
at the end of the fiscal period, based upon the allowance method ........
|
|
1. ____
|
|
2. ____
|
|
3-4. Wrote off the account of the bankrupt debtor (included in Allowance for Doubtful Accounts provision had been made in Question 1-2) ...............
|
|
3. ____
|
|
4. ____
|
|
5-8. Recovered the bad debt written off in Question 3-4 ...................................
|
|
5. ____
|
|
6. ____
|
|
|
|
7. ____
|
|
8. ____
|
|
9-10. Replaced a customer's account receivable with a note receivable ........
|
|
9. ____
|
|
10. ____
|
|
|
|
|
|
|