At the end of the year, the usual adjusting entry for deprecation on a truck was not done. Which of the following is not true? O total assets will be understated at the end of the year O net income will be understated for the year O total liabilities will be understated for the year O total assets will be overstated for the year Which account is decreased when an accounts receivable amount is paid? O accounts receivable O fee earned O cash O accounts payable If the totals of a trial balance are not equal, it could be due to: O an error in determining an account balance O failure to record a transaction O recording the same transaction more than once O recording the same erroneous amount for both the debit and the credit parts of a transaction Which of the following is considered to be an earned revenue: O theatre tickets, sold last month for yesterday's performance O theater ticets, sold yesterday, for tomorrow's performance O theater tickets that are not sold O theater tickets sold for next month's performance

At the end of the year, the usual adjusting entry for deprecation on a truck was not done. Which of the following is not true? O total assets will be understated at the end of the year O net income will be understated for the year O total liabilities will be understated for the year O total assets will be overstated for the year Which account is decreased when an accounts receivable amount is paid? O accounts receivable O fee earned O cash O accounts payable If the totals of a trial balance are not equal, it could be due to: O an error in determining an account balance O failure to record a transaction O recording the same transaction more than once O recording the same erroneous amount for both the debit and the credit parts of a transaction Which of the following is considered to be an earned revenue: O theatre tickets, sold last month for yesterday's performance O theater ticets, sold yesterday, for tomorrow's performance O theater tickets that are not sold O theater tickets sold for next month's performance

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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One company has a credit balance of $1530 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, One company estimates that $1545 of its receivables are uncollectible. As a result it will debit Bad Debts Expense for what amount?
At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $774. During the year, $346 of previously written off accounts were reinstated and accounts totaling $845 are written off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be the one listed below. Select the correct answer. $275 $346 $774 $845
At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
1. What is the effect of the errors to the Retained Earnings at the beginning of 2019? 2. What is the effect of the errors to the Retained Earnings at the end of 2019?
An aging of a company's accounts receivable indicates that $9700 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3010 balance, the adjustment to record bad debts for the period will require a(n)
Ee.19.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $754,825 and Allowance for Doubtful Accounts has a balance of $18,222. What is the net realizable value of accounts receivable?
Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the journal entry required by Albert Trading in this situation.
On December 31 before adjusting entries, a company's balance of Allowance for Doubtful Accounts is a debit of $2,000. What does a "debit" balance prior to adjusting entries indicate? The company's estimate equals actual bad debts. Last year's estimate of bad debts was too high. Last year's estimate of bad debts was too low. The company did not estimate bad debts last year.
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $790,000; Allowance for Doubtful Accounts has a debit balance of $7,000; and sales for the year total $3,560,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $37,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.