x
Info
x
Warning
x
Danger
 / 
 / 
 / 
61.The following information relates to Halloran Co.'s accounts receivable for

Question : 61.The following information relates to Halloran Co.'s accounts receivable for : 1412679

 

 

61.The following information relates to Halloran Co.'s accounts receivable for 2016:
 

Accounts receivable balance, 1/1/2016$  840,000

Credit sales for 20163,300,000

Accounts receivable written off during 201670,000

Collections from customers during 20163,100,000

Allowance for uncollectible accounts balance, 12/31/2016210,000


What amount should Halloran report for accounts receivable, before allowances, at December 31, 2016?  
 
 

A.$1,040,000.

 

B.$970,000.

 

C.$760,000.

 

D.None of these answer choices are correct.

$840,000 + 3,300,000 - 70,000 - 2,500,000 = $970,000

 

 

 

62.Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2015. During 2016, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off.

Calistoga's accounts receivable at December 31, 2016, are:  
 
 

A.$467,000.

 

B.$473,280.

 

C.$465,280.

 

D.$469,280.

 

A/R, 12/31/2015$471,000

Credit sales$315,000

Collections(319,000)

Write-offs(   1,720)

A/R, 12/31/2016$465,280

 

 

 

 

63.Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2015. During 2016, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off.

Calistoga's 2016 bad debt expense is:  
 
 

A.$1,720.

 

B.$1,650.

 

C.$1,505.

 

D.$1,575.

 

Credit sales$315,000

x    .5%

Expense$   1,575

 

 

 

 

64.Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2015. During 2016, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off.

Calistoga's adjusted allowance for uncollectible accounts at December 31, 2016, is:  
 
 

A.$1,575.

 

B.$1,505.

 

C.$1,650.

 

D.$1,720.

 

Step 1$315,000

Credit sales.5%

Expense$   1,575

Step 2

Allowance 12/31/2015$1,650

Write-offs(1,720)

Allowance($   70)debit

Step 3($70) + $1,575 =$1,505

 

 

 

 

65.The balance in accounts receivable at the beginning of 2016 was $300. During 2016, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2016 was: 
 
 

A.$1,600.

 

B.$1,650.

 

C.$1,550.

 

D.$1,900.

$300 + 1,600 - 100 - 250 = $1,550.

 

 

 

66.In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000.

What bad debt expense would Dinty report in its first-year income statement? 
 
 

A.$50,000.

 

B.$82,000.

 

C.$114,000.

 

D.Can't be determined from the given information

Bad debts expense - Write-offs = Change in Allowance balance.
So, Bad debts expense = Change in Allowance balance of $82,000 + Write-offs of $32,000 = $114,000.

 

 

 

67.In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000.

What accounts receivable balance would Dinty report in its first year-end balance sheet? 
 
 

A.$196,000.

 

B.$218,000.

 

C.$230,000.

 

D.None of these is correct.

Credit sales - Cash collections - Write-offs = Change in Accounts receivable
So, $2,200,000 - 1,950,000 - 32,000 = $218,000.

 

 

 

68.In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000.

In Dinty's adjusting entry for bad debts at year-end, which of these would be included? 
 
 

A.Debit to bad debt expense for $114,000.

 

B.Credit to allowance for uncollectible accounts for $82,000.

 

C.Debit to accounts receivable for $32,000.

 

D.All of these answer choices are correct.

Bad debts expense - Write-offs = Change in Allowance balance.
So, Bad debts expense = Change in Allowance balance of $82,000 + Write-offs of $32,000 = $114,000.

 

 

 

69.For 2016, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2015. During 2016, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.

Rahal's accounts receivable at December 31, 2016, are:  
 
 

A.$90,500.

 

B.$88,160.

 

C.$82,500.

 

D.$80,160.

 

A/R 12/31/2015$ 86,500

Credit sales404,000

Collections(408,000)

Write-offs(   2,340)

A/R 12/31/2016$ 80,160

 

 

 

 

70.For 2016, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2015. During 2016, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.

Rahal's 2016 bad debt expense is:  
 
 

A.$2,100.

 

B.$2,340.

 

C.$4,080.

 

D.None of these answer choices are correct.

The correct answer is:
 

Credit sales$404,000

x    1.0%

Expense$   4,040

 

 

 

 

 

Solution
5 (1 Ratings )

Solved
Accounting 1 Year Ago 31 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
150233 Accounting Questions Answered!
Post a Question