D. A trial balance indicates that the debit total exceeds the credit total by $63. Which of the following errors is the most probable source of the discrepancy? A. An asset with a balance of $63 was mistakenly entered in the ledger as a credit for that amount instead of a debit OB. An asset with a balance of $670 was mistakenly entered in the ledger as a $607 debit OC. A liability with a balance of $63 was mistakenly entered in the ledger as a debit for that amount, instead of a credit OD. A liability with a balance of $970 was mistakenly entered in the ledger as a $907 credit Mark for review (Will be highlighted on the review page) Previous Question Next Question >>

D. A trial balance indicates that the debit total exceeds the credit total by $63. Which of the following errors is the most probable source of the discrepancy? A. An asset with a balance of $63 was mistakenly entered in the ledger as a credit for that amount instead of a debit OB. An asset with a balance of $670 was mistakenly entered in the ledger as a $607 debit OC. A liability with a balance of $63 was mistakenly entered in the ledger as a debit for that amount, instead of a credit OD. A liability with a balance of $970 was mistakenly entered in the ledger as a $907 credit Mark for review (Will be highlighted on the review page) Previous Question Next Question >>

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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1. An entity determines that the credit risk on a loan receivable has not increased significantly since initial recognition. The entity should recognize loss allowance equal to a. the 12-month expected credit losses on the instrument. b. the lifetime expected credit losses on the instrument. c. sum of a and b d. none; credit losses should be recognized only when there is objective evidence of a loss event.
Please answer this question.
Graves Construction is journalizing two transactions related to uncollectible accounts. The first transaction does not affect cash flows. but the second transaction does affect cash flows. If Graves Construction uses the allowance method to account for uncollectibles, which of the following scenarios may pertain to these transactions? O The first transaction is to record the sale of uncollectible accounts to a factor, and the second transaction is to record the write-off of an uncollectible account. O The first transaction is to record the recovery of a previously written off collectible account, and the second transaction is to record the estimate of uncollectible accounts. The first transaction is to record the write-off of an uncollectible account, and the second transaction is to record the recovery of a previously written off uncollectible account. O The first transaction is to record the write-off of an uncollectible account, and the second transaction is to record the estimate…
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period
The accountant for Kerns company mistakenly posted an expense amount as an asset in the general ledger. What is the financial statement impact of this error?
The Allowance for Doubtful Accounts account will have a credit balance at the end of the period if the write-offs during the period are: none of the answers are correct. more than the beginning balance. less than the beginning balance. O equal to the beginning balance.
Indicate whether each statement best describes the allowance method or the direct write-off method. List 1. When an account is written off, debit Allowance for Doubtful Accounts. 2. Usually does not best match sales and expenses because Bad Debts Expense is not recorded until an account becomes uncollectible, which usually occurs in a period after the credit sale. 3. Bad Debts Expense is recorded in the period in which the related sales occur. 4. Bad Debts Expense is recorded when an account is determined to be uncollectible. 5. An adjusting entry is generally required at the end of each period to estimate bad debts. 6. The write-off of a specific customer account directly affects net income in that period. < Prev of 9 ‒‒‒ Method Allowance Direct Write-off D
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An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $4,450. If Allowance for Doubtful Accounts has a $1,047 credit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $1,047 b. debit to Bad Debt Expense for $4,450 c. debit to Bad Debt Expense for $3,403 d. credit to Allowance for Doubtful Accounts for $4,450
An objective of the expense recognition principle ("matching") is to have bad debt expense recorded in: Multiple Choice O the same period that the related accounts receivable is determined to be uncollectible. the same period the related credit sales are recorded. a later period after the related credit sales are recorded. the period that a customer eventually becomes bankrupt.
The method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible. No attempt is made to predict bad debts expense. percentage of sales percentage of receivables direct write-off allowance
Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be to debit a. Allowance for Doubtful Accounts and credit Accounts Receivable. Ob. Sales Returns and Allowances and credit Accounts Receivable. c. Accounts Receivable and credit Bad Debt Expense. Od. Bad Debt Expense and credit Allowance for Doubtful Accounts.