AC210 Fall 2014 Quiz 8 Version A with h
AC210 Fall 2014 Quiz 8 Version A Score ____ / 80 ____ / 20
Name ______________________________________ CWID _______________ Total ____/ 100
Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. Mark your answer in the blanks provided at the top. 10 points each
1. _____ 2. _____ 3. _____ 4. _____ 5. _____ 6. _____ 7. _____ 8. _____
1. The entry required to recognize the bad debts expense for 2014 will act to:
A. Increase total assets and retained earnings
B. Decrease total assets and retained earnings
C. Decrease total assets and increase net income
D. Increase total assets and decrease net income
2. The following data concerns Wang Corporation for 2015:
Credit sales during the year
$1,600,000
Accounts Receivable—December 31, 2015
235,000
Allowance for Doubtful Accounts—December 31, 2015
18,000
Bad debt expense for the year
11,000
What amount will Wang show on its year-end balance sheet for the net realizable value of its accounts receivable?
A. $253,000
B. $235,000
C. $224,000
D. $217,000
3. The data below is for Music Corporation for 2015.
Accounts receivable - January 1, 2015
$236,000
Credit sales during 2015
820,000
Collections from credit customers during 2015
590,000
Customer accounts written off as uncollectible during 2015
8,000
Allowance for doubtful accounts - January 1, 2015
8,700
Estimated uncollectible accounts based on an aging analysis
9,600
If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2015?
A. $8,000
B. $8,100
C. $8,700
D. $8,900
4. The data below is for Benton Corporation for 2015. Accounts Receivable—January 1, 2015 $334,000 Credit sales during 2015 850,000 Collections from credit customers during 2015 725,000 Customer accounts written off as uncollectible during 2015 12,000 Allowance for Doubtful Accounts (after
Name ______________________________________ CWID _______________ Total ____/ 100
Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. Mark your answer in the blanks provided at the top. 10 points each
1. _____ 2. _____ 3. _____ 4. _____ 5. _____ 6. _____ 7. _____ 8. _____
1. The entry required to recognize the bad debts expense for 2014 will act to:
A. Increase total assets and retained earnings
B. Decrease total assets and retained earnings
C. Decrease total assets and increase net income
D. Increase total assets and decrease net income
2. The following data concerns Wang Corporation for 2015:
Credit sales during the year
$1,600,000
Accounts Receivable—December 31, 2015
235,000
Allowance for Doubtful Accounts—December 31, 2015
18,000
Bad debt expense for the year
11,000
What amount will Wang show on its year-end balance sheet for the net realizable value of its accounts receivable?
A. $253,000
B. $235,000
C. $224,000
D. $217,000
3. The data below is for Music Corporation for 2015.
Accounts receivable - January 1, 2015
$236,000
Credit sales during 2015
820,000
Collections from credit customers during 2015
590,000
Customer accounts written off as uncollectible during 2015
8,000
Allowance for doubtful accounts - January 1, 2015
8,700
Estimated uncollectible accounts based on an aging analysis
9,600
If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2015?
A. $8,000
B. $8,100
C. $8,700
D. $8,900
4. The data below is for Benton Corporation for 2015. Accounts Receivable—January 1, 2015 $334,000 Credit sales during 2015 850,000 Collections from credit customers during 2015 725,000 Customer accounts written off as uncollectible during 2015 12,000 Allowance for Doubtful Accounts (after