Reference no: EM13577309
1. When using a periodic inventory method, which account is increased when you buy merchandise inventory?
A.) Cost of goods sold
B.) Beginning inventory
C.) Ending inventory
D.) purchases
2. The ending Merchandise Inventory account appears in the _______ on the worksheet.
A.) Adjusted trial balance and balance sheet columns
B.) Adjustment column
C.) Adjustment, adjusted trial balance, an income statement columns
D.) Adjustment, adjusted trial balance and balance sheet column
3. The goods a company has available to sell to customers are called
a.) Supplies
B.) Sales
C.) Cost of goods
d.) Merchandise inventory
4. Using the aging method, estimated uncollectible accounts are $3,000. If the balance in the Allowance for Doubtful Accounts is a $600 credit before adjustment, what is the Bad-Debts Expense adjustment for the period?
a.) $3,000
b.) $600
C.) $2,400
d.) $3,600
5. Which inventory appears in the balance sheet column of the worksheet?
a. Ending inventory
B. Beginning inventory
C. Combination of beginning and ending inventories
D. None of the above
6. At the start of the year, Northern Lights had $8,000 worth of merchandise. What do we know about Northern Lights?
A. It's a service business
B. It's a retail business
C. The company ended with a net income last year
D. The company ended with a net loss last year
7. Harrys hardware estimates that approximatly $1.75 out of every $100 of credt sales proved to be uncollectable. Barber calculate bad debts expense using the
A.) income statement approch
B. direct write off method
C. balance sheet approch
D. aging the accounts Recieveable approch
8. which method uses an aging of account Recieveable to calculate the bad debt expense?
A.) income statement approch
B. direct write off method
C. balance sheet approch
D. aging the accounts Recieveable approch
9. 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 income statement approach, the Bad-Debts Expense for the year is
A. $1000
B. $3000
C. $2800
D.$1200
10. 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 includes a
A. credit to the Bad-Debt Expense account for $500.
B. debit to the Bad-Debts Expense account for $900
C. credit to the Bad-Debts Expense account for $1,300
D. debit to the Bad-Debts Expense account for $500
11.Which type of account is an Allowance for Doubtful Accounts?
A. assets
B. contra assets
C. revenue
D. Contra Revenue