Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
Reversing entries are recorded on the first day of the new accounting period.
Answer
This answer is hidden. It contains 4 characters.
Related questions
Q:
The return of merchandise was recorded as a debit to Accounts Payable and a credit to Purchases. This error would cause:
A) the period end assets to be understated.
B) the period end liabilities to be understated.
C) the period's net income to be understated.
D) None of these are correct.
Q:
The perpetual inventory system is a system which:
A) updates inventory continuously.
B) uses either FIFO, LIFO, weighted-average, or specific invoice method.
C) never needs a physical inventory taken.
D) both A and B.
Q:
The two methods of accounting for uncollectible receivables are the allowance method and the:
A) cost method.
B) interest method.
C) direct write-off method.
D) equity method.
Q:
The journal entry to write off an account judged to be uncollectible under the allowance would include a debit to:
A) Sales.
B) Accounts Receivable.
C) Allowance for Doubtful Accounts.
D) Bad Debts Expense.
Q:
After aging the Accounts Receivable, it is estimated that $2,450 will not be collected and the allowance account has an existing debit balance of $300. If Accounts Receivable is $107,000, the net receivables would be:
A) $107,000.
B) $106,900.
C) $104,550.
D) $104,250.
Q:
Determine the amount of the adjustment for bad debts given:
Bad debts are estimated to be 4% of sales
Accounts receivable balance $ 600,000
Allowance for bad debts balance (credit) $200
Net Sales $215,000
$ ________
Q:
Prepare the adjusting journal entry of Bad Debts Expense from the following information using the income statement approach.
Net Sales for the year $475,000
Balance in the allowance account 900 credit
Estimated percentage of sales uncollectible 2%
Estimated uncollectible accounts-aging $2,500
Q:
Under the accrual method of accounting, the allowance method is generally required for financial reporting purposes.
Q:
Using the balance sheet approach, the balance in Allowance for Doubtful Accounts is taken into consideration when finding the adjustment.
Q:
Sigma reports net credit sales of $400,000. There is a credit balance of $1,000 in the Allowance for Doubtful Accounts. Uncollectible accounts are estimated to be 2.5% of net credit sales. Under the income statement approach, the adjusting entry would require a debit to Bad Debt Expense for:
A) $10,000.
B) $9,000.
C) $ 9,975.
D) some other number.
Q:
When a year-end adjustment is made for estimated bad debts:
A) net income is increased.
B) liabilities increase.
C) net assets increase.
D) net assets decrease.
Q:
The balance in the Allowance for Doubtful Accounts is considered under which of the following approaches?
A) Balance sheet approach
B) Income statement approach
C) Direct write-off approach
D) All three approaches
Q:
Indy Sport and Hobby's Allowance for Doubtful Accounts had an unadjusted credit balance of $400. The manager estimates that $900 of the Accounts Receivable is uncollectible. Using the balance sheet approach, the year-end adjusting entry for Bad Debts Expense:
A) includes a credit to the Bad Debt Expense account for $500.
B) includes a debit to the Bad Debts Expense account for $900.
C) includes a credit to the Bad Debts Expense account for $1,300.
D) includes a debit to the Bad Debts Expense account for $500.
Q:
The adjustment for bad debts using the percentage of receivables ignored the debit balance in the Allowance account. This error would cause:
A) total assets to be overstated.
B) total liabilities to be understated.
C) net income to be understated.
D) None of these are correct.
Q:
Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:
A) $1,000.
B) $3,000.
C) $2,800.
D) $1,200.
Q:
The current balance of Allowance for Doubtful Accounts is considered when calculating the current period's Bad Debts Expense under the following approach:
A) direct write-off approach.
B) income statement approach.
C) balance sheet approach.
D) All of these answers are correct.
Q:
At December 31, 200x, Brooke's Horse Stable unadjusted Allowance for Doubtful Accounts showed a debit balance of $432. An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000. The year-end adjusting entry for Bad Debts Expense:
A) includes a debit to the Allowance account for $568.
B) includes a credit to the Allowance account for $42.
C) includes a debit to the Allowance account for $822.
D) includes a credit to the Allowance account for $1,432.
Q:
Prepare a partial balance sheet for the Meredith Company at December 31, 200x, from the following information:
Accounts Receivable $7,500
Allowance for Doubtful Accounts 300
Bad Debt Expense 2,000
Cash 12,000
Merchandise Inventory 3,500
Q:
The adjusting entry for uncollectibles is based on an estimate.
Q:
The reversing entry for Salaries is:
A) debit Salaries Expense; credit Salaries Payable.
B) debit Salaries Payable; credit Income Summary.
C) debit Salaries Payable; credit Salaries Expense.
D) debit Salaries Expense; credit Cash.
Q:
Ending inventory is adjusted by debiting Merchandise Inventory and crediting Capital.
Q:
Adjusting journal entries still need to be made after the worksheet; otherwise the account balances will not be correct.
Q:
Closing entries:
A) are posted to the general ledger.
B) are done to update Cash.
C) can be done before adjusting entries.
D) All of the above are correct.
Q:
The trial balance columns on the worksheet are populated using the:
A) general journal.
B) general ledger.
C) subsidiary ledger.
D) None of the above.
Q:
The adjusted trial balance on the worksheet:
A) contains balances from the permanent accounts.
B) contains balances from the temporary accounts.
C) contains balances for all accounts with balances.
D) None of the above answers are correct.
Q:
Which of the following items generally has a credit balance in the income statement columns of the worksheet?
A) Purchase Returns and Allowances
B) Purchases
C) Accumulated Depreciation
D) Sales Discounts
Q:
Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following:
Sales $1,300 Beginning Inventory $ 11
Sales Discount 5 Net purchases 1,050
Sales Returns & Ending Inventory 16
Allowances 15 Operating Expenses 100
Q:
Mortgage Payable is an expense account.
Q:
The ending inventory is adjusted by debiting Income Summary and crediting Merchandise Inventory.
Q:
The beginning inventory is adjusted by crediting Merchandise Inventory and debiting Income Summary.