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31) At the beginning of 2015, Elixir Inc. has the

Question : 31) At the beginning of 2015, Elixir Inc. has the : 1412212

 

31) At the beginning of 2015, Elixir Inc. has the following ledger balances:

 

 

During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be ________.

A) $5,000

B) $6,500

C) $6,400

D) $7,000

 

32) At the beginning of 2015, Elixir Inc. has the following ledger balances:

 

 

During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in Bad Debts Expense would be ________.

A) $20,000

B) $40,000

C) $28,000

D) $27,000

33) At the beginning of 2015, Elixir Inc. has the following ledger balances:

 

 

During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the aging method. The amount estimated as uncollectible was $25,000. The ending balance in the Allowance for Bad Debts would be ________.

A) $38.000

B) $18,000

C) $25,000

D) $30,000

 

34) At the beginning of 2015, Elixir Inc. has the following ledger balances:

 

 

During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the aging method. The amount estimated as uncollectible was $25,000. The ending balance in Bad Debts Expense would be ________.

A) $38,000

B) $25,000

C) $13,000

D) $7,000

35) Accounts receivable has a balance of $30,000 and the Allowance for Bad Debts has a credit balance of $3,000. The allowance method is used. What is the net realizable value of Accounts Receivable before and after a $2,000 Account Receivable is written off?

A) $27,000; $27,000

B) $14,300; $14,300

C) $16,000; $15,940

D) $16,000; $16,000

 

36) Accounts receivable has a balance of $5,000 and the Allowance for Bad Debts has a credit balance of $440. The allowance method is used. What is the net realizable value of Accounts Receivable after a $160 account receivable is written off?

A) $4,400

B) $4,720

C) $4,560

D) $5,000

37) On January 1st, 2015, Everlight Corp. has the following balances:

 

 

During the year, Everlight has $150,000 of credit sales, collections of credit sales of $140,000, and write-offs of $3,000. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense would show ________.

A) a debit of $1,800

B) a credit of $4,200

C) a zero balance

D) a debit of $3,000

 

38) A company reports net accounts receivable of $150,000 on its December 31, 2015 balance sheet. The Allowance for Bad Debts has a credit balance of $15,000. What is the balance in Accounts Receivable?

A) $155,000

B) $150,000

C) $165,000

D) $135,000

39) On January 16, Whole Circle Inc. sold goods worth $5,000 to Smith on account. It could not collect cash from the customer, and finally decided to write off the account. Give journal entry to record the write-off assuming that the company uses the allowance method.

 

 

 

 

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