Reference no: EM131715068

Why is allowance for doubtful accounts required?
a)management accumulates the losses over time
b)impossible to know which accounts wont pay
c)credit sale creates a liability
d) uncollectible amounts that are written off are accumulated in their own account

A written off account that then pays, under the allowance method:

a)profit goes down
b)profit goes up
c)Journal entry musty be made to fix mistake
d)profit is not effected

23500 note payable over 5 years with six percent interest on Jan. 1. Fixed payments of 4700 plus interest. First journal entry will have
a)Notes Payable - DR - 4700
b)Cash - DR 4700
c)Notes Payable - CR - 4982
d) Interest Expense - CR - 282

Tax Bill is 2150 in Jan. It is paid at the end of March. Year end is the end of the calendar year. At the end of the calendar year the balances should be:
a) Prepaid Tax - 0, Tax Payable - 0
b)Prepaid tax - 538, Tax Payable - 1613
c)Prepaid Tax - 179, Tax Payable - 1971
d)Prepaid Tax - 538, Tax Payable - 538

As payments on a blended long term loan are made:
a) interest portion goes up, principle portion goes down
b)both portions go down
c)portions stay the same
d)interest portion goes up and principle portion goes down

When someone gets a note receivable with interest, they will:
a)DR - Notes receivable for principle value
b)DR - Notes receivable for maturity amount
c)CR - Notes receivable for maturity amount
d)CR - Notes receivable for principle value