major review 2 ch5

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16 Qs

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major review 2 ch5

major review 2 ch5

Assessment

Quiz

Business

University

Medium

Created by

Mellayne Richards

Used 3+ times

FREE Resource

16 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

which one of these is NOT a contra-revenue account

Trade discount

Sales returns

Sales Allowance

Sales Discount

2.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

XYZ Consulting offers a 15% trade discount when providing services of $6,000 or more to its customers.

The company provides services of $8,000 (before applying the trade discount) on account.

How should XYZ Consulting record this transaction in the general journal?


Accounts Receivable - $8,000 (Debit)
Service Revenue - $8,000 (Credit)

Accounts Receivable - $6,800 (Debit)
Service Revenue - $6,800 (Credit)

Accounts Receivable - $6,500 (Debit)
Service Revenue - $6,500 (Credit)


Accounts Receivable - $7,200 (Debit)
Service Revenue - $7,200 (Credit)

3.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

A customer purchases merchandise from ABC Retail for $1,200 on account. Later, they notice a minor defect and negotiate a $200 sales allowance instead of returning the item.

Debit Sales Allowances $200, Credit Accounts Receivable $200

 Debit Accounts Receivable $1,000, Credit Sales Allowances $200

Debit Sales Allowances $1,200, Credit Accounts Receivable $1,200

Debit Cash $200, Credit Sales Revenue $200

4.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

At December 31, Gill Company reported Accounts Receivable of $262,000 and an Allowance for Uncollectible Accounts of $850 (credit) before adjustment. An analysis suggests that the Allowance for Uncollectible Accounts should be 1% of Accounts Receivable.

$3,280

$2,620

$1,770

$850

5.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt


 The following information pertains to Summit Corp. at the end of December:

Accounts Receivable = $12,500

$8,000 not yet due (6% estimated uncollectible)

$3,000 up to 30 days past due (18% estimated uncollectible)

$1,500 greater than 30 days past due (42% estimated uncollectible)

Allowance for Uncollectible Accounts (before adjustment) = $500 credit

What is the appropriate amount of Bad Debt Expense that Summit Corp. should record?


A) $1,150

B) $1,240

C) $1,650

D) $2,150

6.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

At the beginning of the year, Coastal Retail Inc. had an Allowance for Uncollectible Accounts balance of $18,000. By the end of the year, the company determined that actual bad debts totaled $22,500 and needed to be written off.

What is the correct journal entry to record the write-off of these uncollectible accounts?

Debit: Bad Debt Expense $22,500
Credit: Allowance for Uncollectible Accounts $22,500


Debit: Allowance for Uncollectible Accounts $22,500
Credit: Accounts Receivable $22,500

Debit: Allowance for Uncollectible Accounts $4,500
Credit: Accounts Receivable $4,500

Debit: Allowance for Uncollectible Accounts $18,000
Credit: Accounts Receivable $18,000

7.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

At the beginning of the year, Coastal Retail Inc. had an Allowance for Uncollectible Accounts balance of $18,000. By the end of the year, the company determined that actual bad debts totaled $22,500 and needed to be written off.

What is the balance of the Allowance for Uncollectible Accounts at the end of the year after the write-off?

A) $4,500 credit

B) $0

C) $18,000 credit

D) $4,500 debit

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