When the allowance method of accounting for uncollectible accounts is used, Bad Debt Expense is recorded

Module 2 Accounting

Quiz
•
Business
•
University
•
Medium
Donnalyn Samonte
Used 1+ times
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13 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the year after the credit sale is made
In the same year as the credit sale
As each credit sale is made
When an account is written off as uncollectible
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A debit balance in the Allowance for Doubtful Accounts
is the normal balance for that account
indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.
indicates that actual bad debt write-offs have been less than what was estimated
cannot occur if the percentage of receivables method of estimating bad debts is used
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited
When a credit sale is past due
At the end of each accounting period
Whenever a pre-determined amount of credit sales has been made
When an account is determined to be uncollectible
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The two methods of accounting for uncollectible accounts are the direct write-off method and the
Accrual Method
Net Realizable Method
Bad Debt Method
Allowance Method
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following items on a bank reconciliation would require an adjusting entry on the company’s books?
An error by the bank
Outstanding checks
A bank service charge
A deposit in transit
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A NSF check should appear in which section of the bank reconciliation?
Addition to the balance per books
Deduction from the balance per bank
Addition to the balance per bank
Deduction from the balance per books
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following is not an objective of a system of internal controls?
Safeguard company assets
Enhance the accuracy and reliability of accounting records
Fairness of the financial statements
Reduce the risks of errors
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