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106) At the end of its first year of operations, a company has accounts receivable of $250,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000. OB) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $25,000. OD) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $25,000. C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for $25,000. 116) Which of the following is correct with respect to a bank reconciliation? C) Subtract NSF checks from the company's balance. A) Subtract interest earned from the bank's balance. B) Add service charge to the company's balance. OD) Add deposits outstanding to the company's balance.

106) At the end of its first year of operations, a company has accounts receivable of $250,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000. OB) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $25,000. OD) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $25,000. C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for $25,000. 116) Which of the following is correct with respect to a bank reconciliation? C) Subtract NSF checks from the company's balance. A) Subtract interest earned from the bank's balance. B) Add service charge to the company's balance. OD) Add deposits outstanding to the company's balance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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106) At the end of its first year of operations, a company has accounts receivable of $250,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000. OB) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $25,000. OD) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $25,000. C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for $25,000.
Transcribed Image Text:106) At the end of its first year of operations, a company has accounts receivable of $250,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: OA) Debit Bad Debt Expense; Credit Accounts Receivable for $25,000. OB) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $25,000. OD) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $25,000. C) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for $25,000.
116) Which of the following is correct with respect to a bank reconciliation? C) Subtract NSF checks from the company's balance. A) Subtract interest earned from the bank's balance. B) Add service charge to the company's balance. OD) Add deposits outstanding to the company's balance.
Transcribed Image Text:116) Which of the following is correct with respect to a bank reconciliation? C) Subtract NSF checks from the company's balance. A) Subtract interest earned from the bank's balance. B) Add service charge to the company's balance. OD) Add deposits outstanding to the company's balance.
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