Reference no: EM13842120

1. Kentucky Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $176,000 of revenue on account during 2014. During 2014, the company collected $140,800 of cash from its receivables accounts. Kentucky estimates that it will be unable to collect 2% of revenue on account. The amount of net realizable value of receivables on the December 31, 2014 balance sheet would be:

o $31,680.

o $38,720.

o $35,552.

o $35,200.

2. On January 1, 2014, Howe Company's Accounts Receivable balance was $11,100 and the balance in the Allowance for Doubtful Accounts was $555. On January 5, 2014, a $310 uncollectible account was written-off as uncollectible. Assuming that no other transactions related to accounts receivable had occurred, the net realizable value of accounts receivable immediately after the write-off was

o $10,790.

o $11,100.

o $10,235.

o $10,545.

3. Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $3,500 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $30,000 of service on account. The company collected $23,500 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

The amount of cash flow from operating activities that would appear on the 2014 statement of cash flows is:

o $23,500.

o $26,500.

o $30,000.

o $20,000.

4. Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $4,600 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $41,000 of service on account. The company collected $29,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

The amount of uncollectible accounts expense to recognize on the 2014 income statement is:

o $820.

o $240.

o $92.

o $410.

5. Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $4,200 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $37,000 of service on account. The company collected $27,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

The balance in Accounts Receivable as of December 31, 2014 was

o $740.

o $20,000.

o $14,200.

o $10,000.

6. Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $4,500 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $40,000 of service on account. The company collected $28,500 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

The net realizable value of Bay's accounts receivable as of December 31, 2014 was

o $800.

o $8,000.

o $15,200.

o $16,000.

7. The Stevens Company provided $47,000 of services on account during 2014, its first year in operation. During 2014, Stevens collected $35,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 2% of its revenues on account.

The amount of uncollectible accounts expense recognized on the 2014 income statement was

o $8,750.

o $3,000.

o $235.

o $940.

8. The Stevens Company provided $58,000 of services on account during 2014, its first year in operation. During 2014, Stevens collected $40,500 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its revenues on account.

The amount of net realizable value of receivables on the company's 2014 balance sheet was

o $1,215.

o $15,760.

o $19,240.

o $17,500.

9. For Engle Company, the balance in Accounts Receivable at the beginning of the period was $1,150. During the period $3,900 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $470, and uncollectible accounts of $550 were written off, the amount of cash inflow from customers that would appear in the operating section of the cash statement would be:

o $3,900.

o $3,350.

o $4,030.

o $5,050.

10. On January 1, 2014 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $37,500 and $575, respectively. During the year the company reported $90,000 of credit sales. There were $640 of receivables written-off as uncollectible in 2014. Cash collections of receivables amounted to $89,460. The company estimates that it will be unable to collect one percent (1%) of credit sales.

The amount of uncollectible accounts expense recognized in the 2014 income statement will be

o $575.

o $900.

o $640.

o $375.

11. At the end of 2014, Duffau Company had outstanding accounts receivable of $140,000. Before recording the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $600. If Duffau estimates that it will not collect 4 percent of its accounts receivable, what amount of uncollectible accounts expense should Duffau record? Round to the nearest dollar.

o $5,576

o $5,600

o $5,000

o $5,624

12.

Olin Company had accounts receivable of $459,000. Before it recorded the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $918. Olin estimates that it will not collect 3 percent of its accounts receivable. What amount of uncollectible accounts expense should be recorded?

o $12,852

o $11,934

o $11,016

o $13,770

13. On August 1, 2014, Miles Company accepted from another company a one-year note receivable with a face amount of $7,000 and an interest rate of 8%.

What would be the total amount of assets (related to the note receivable) reported on Muller's balance sheet dated December 31, 2014? (Round your final answer to the nearest whole dollar amount.)

o $7,560

o $7,000

o $7,327

o $7,233

14. On June 1, 2014, Siebens Enterprises loaned $29,000 to Tyler Company for one year at 8 percent interest. Under the terms of the promissory note, Tyler will repay the principal and pay one year's interest on May 31, 2015.

Related to this note receivable, what amount of interest income would Siebens report on its 2014 income statement? (Round your final answer to the nearest whole dollar amount.)

o $2,320

o $1,160

o $1,353

o $1,450

15. On June 1, 2014, Siebens Enterprises loaned $24,500 to Tyler Company for one year at 6 percent interest. Under the terms of the promissory note, Tyler will repay the principal and pay one year's interest on May 31, 2015.

Related to this note receivable, what amount of interest income would Siebens report on its 2015 income statement?(Round your final answer to the nearest whole dollar amount.

o $735

o $1,470

o $613

o $0