61. Where does the address that prints on bills defaults from?
A. GL Control File
B. Contract Control File
C. AR Control File
Ans: A
62. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if the buyer pays on June 8?
A. $720
B. $784
C. $792
D. $800
Ans: C
63. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the goods. How much should the seller expect to receive if the buyer pays on June 8?
A. $692
B. $693
C. $700
D. $792
Ans: B
64. With credit terms of 2/10, n/30, the annual interest rate for paying in 10 days instead of 30 days is closest to
A. 2%
B. 24%
C. 30%
D. 36%
Ans: D
65. A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a ___________________ to the Allowance for Doubtful Accounts.
A. debit of $12,000
B. credit of $12,000
C. debit of $28,000
D. credit of $28,000
Ans: B
66. A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $18,000. The adjusting entry will include a ____________________ to Bad Debts Expense.
A. debit of $2,000
B. credit of $2,000
C. debit of $38,000
D. credit of $38,000
Ans: A
67. Accounts receivable are reported on the balance sheet at their fair market value.
A. True
B. False
Ans: B
68. Under the allowance method the write-off of an account receivable leaves the net realizable value of the accounts receivable unchanged.
A. True
B. False
Ans: A
69. The Allowance for Doubtful Accounts is written off at the end of the fiscal year.
A. True
B. False
Ans: B
70. The direct write-off method violates the matching principle.
A. True
B. False
Ans: A
A. GL Control File
B. Contract Control File
C. AR Control File
Ans: A
62. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if the buyer pays on June 8?
A. $720
B. $784
C. $792
D. $800
Ans: C
63. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the goods. How much should the seller expect to receive if the buyer pays on June 8?
A. $692
B. $693
C. $700
D. $792
Ans: B
64. With credit terms of 2/10, n/30, the annual interest rate for paying in 10 days instead of 30 days is closest to
A. 2%
B. 24%
C. 30%
D. 36%
Ans: D
65. A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a ___________________ to the Allowance for Doubtful Accounts.
A. debit of $12,000
B. credit of $12,000
C. debit of $28,000
D. credit of $28,000
Ans: B
66. A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $18,000. The adjusting entry will include a ____________________ to Bad Debts Expense.
A. debit of $2,000
B. credit of $2,000
C. debit of $38,000
D. credit of $38,000
Ans: A
67. Accounts receivable are reported on the balance sheet at their fair market value.
A. True
B. False
Ans: B
68. Under the allowance method the write-off of an account receivable leaves the net realizable value of the accounts receivable unchanged.
A. True
B. False
Ans: A
69. The Allowance for Doubtful Accounts is written off at the end of the fiscal year.
A. True
B. False
Ans: B
70. The direct write-off method violates the matching principle.
A. True
B. False
Ans: A
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