6 . A check for $ 275 is incorrectly recorded by a company as $ 257 . |
On the bank reconciliation , the $ 18 error should be |
a . |
Added to the balance per books . |
b . |
Deducted from the balance per book . |
c . |
Added to the balance per bank . |
d . |
Deducted from the balance per bank . |
7 . The Allowance for Doubtful Accounts is necessary because a . when recording uncollectible accounts expense , it is not possible to know which specific accounts will not pay . b . uncollectible accounts that are written off must be accumulated in a separate account . c . a liability results when a credit sale is made . d . management needs to accumulate all the credit losses over the years . 8 . Under the direct write-off method of accounting for uncollectible accounts , Bad Debts Expense is debited a . when a credit sale is past due . b . at the end of each accounting period . c . whenever a pre-determined amount of credit sales have been made . d . when an account is determined to be uncollectible 9 . Manning Company uses the percentage of receivables method for recording bad debts expense . The accounts receivable balance is $ 200,000 and credit sales are $ 1,000,000 . Management estimates that 5 % of accounts receivable will be uncollectible . What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $ 2,000 before adjustment ? a . Bad Debts Expense 10,000 Allowance for Doubtful Accounts 10,000 b . Bad Debts Expense 8,000 Allowance for Doubtful Accounts 8,000 c . Bad Debts Expense 8,000 Accounts Receivable 8,000 d . Bad Debts Expense 10,000 Accounts Receivable 10,000
10 . The receivables turnover ratio