Hair Design Supply Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $1,200,000.00. In the past, actual uncollectible accounts expense has been about 2.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?
$24,000.00
$24.00
$240.00
$2,400.00
On Your Mark Writing Supplies estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $175,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?
$17.50
$175.00
$1,750.00
$17,500.00
Western Textile Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $5,275,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year?
$52.75
$527.50
$5,275.00
$52,750.00
On Your Mark Writing Supplies received a check for $225.00 from Pen & Paper, whose account was previously written off. On Your Mark Writing Supplies uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Pen & Paper?
Debit Accounts Receivable/ Pen & Paper, $225.00; Credit Allowance for Uncollectible Accounts, $225.00
Debit Accounts Receivable/ Pen & Paper, $225.00; Credit Uncollectible Accounts Expense, $225.00
Debit Uncollectible Accounts Expense, $225.00; Credit Accounts Receivable/ Pen & Paper, $225.00
Debit Uncollectible Accounts Expense, $225.00; Credit Allowance for Uncollectible Accounts, $225.00
Steve's Auto Shop uses the direct write-off method when handling uncollectible accounts receivable. John Taylor owes $375.00 on account. Steve's Auto Shop determined this account to be uncollectible. Which is the correct entry for writing off this account?
Debit Accounts Receivable/John Taylor, $375.00; Credit Uncollectible Accounts Expense, $375.00
Debit Accounts Receivable/John Taylor, $375.00; Credit Allowance for Uncollectible Accounts, $375.00
Debit Uncollectible Accounts Expense, $375.00; Credit Accounts Receivable/John Taylor, $375.00
Debit Uncollectible Accounts Expense, $375.00; Credit Allowance for Uncollectible Accounts, $375.00
Legal Eagles Law Firm uses the direct write-off method when handling uncollectible accounts receivable. Joe Coffey owes $250.00 on account. Legal Eagles Law Firm determined this account to be uncollectible. Which is the correct entry for writing off this account?
Debit Accounts Receivable/Joe Coffey, $250.00; Credit Allowance for Uncollectible Accounts, $250.00
Debit Accounts Receivable/Joe Coffey, $250.00; Credit Uncollectible Accounts Expense, $250.00
Debit Uncollectible Accounts Expense, $250.00; Credit Accounts Receivable/Joe Coffey, $250.00
Debit Uncollectible Accounts Expense, $250.00; Credit Allowance for Uncollectible Accounts, $250.00
Workman Tools estimates its uncollectible accounts expense for the year to be $950.00. What is the correct entry to record the estimated uncollectible accounts expense?
Debit Uncollectible Accounts Expense, $950.00; credit Accounts Receivable, $950.00
Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00
Debit Accounts Receivable, $950.00; credit Uncollectible Accounts Expense, $950.00
Debit Allowance for Uncollectible Accounts, $950.00; credit Uncollectible Accounts Expense, $950.00
Hair Design Supply estimates its uncollectible accounts expense for the year to be $4,250.00. What is the correct entry to record the estimated uncollectible accounts expense?
Debit Uncollectible Accounts Expense, $4,250.00; credit Accounts Receivable, $4,250.00
Debit Uncollectible Accounts Expense, $4,250.00; credit Allowance for Uncollectible Accounts, $4,250.00
Debit Accounts Receivable, $4,250.00; credit Uncollectible Accounts Expense, $4,250.00
Debit Allowance for Uncollectible Accounts, $4,250.00; credit Uncollectible Accounts Expense, $4,250.00
Mother Goose Children's Clothing received a check for $125.00 from Little Angels, whose account was previously written off. Mother Goose Children's Clothing uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Little Angels?
Debit Accounts Receivable/Little Angels, $125.00; credit Allowance for Uncollectible Accounts, $125.00
Debit Accounts Receivable/Little Angels, $125.00; credit Uncollectible Accounts Expense, $125.00
Debit Uncollectible Accounts Expense, $125.00; Credit Accounts Receivable/Little Angels, $125.00
Debit Uncollectible Accounts Expense, $125.00; credit Allowance for Uncollectible Accounts, $125.00
Mitchell Building Supplies uses the direct write-off method when handling uncollectible accounts receivable. Lark Construction owes $1,200.00 on account. Mitchell Building Supplies determined this account to be uncollectible. Which is the correct entry for writing off this account?
Debit Accounts Receivable/Lark Construction, $1,200.00; credit Allowance for Uncollectible Accounts, $1,200.00
Debit Accounts Receivable/Lark Construction, $1,200.00; credit Uncollectible Accounts Expense, $1,200.00
Debit Uncollectible Accounts Expense, $1,200.00; credit Accounts Receivable/Lark Construction, $1,200.00
Debit Uncollectible Accounts Expense, $1,2000.00; credit Allowance for Uncollectible Accounts, $1,200.00
Maple Tree Candy Factory estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $185,000.00. In the past, actual uncollectible accounts expense has been about 0.5% of total sales on account. What is the estimated uncollectible accounts expense for the year?
$9.25
$92.50
$925.00
$9,250.00
Pet Food Wholesale estimates its uncollectible accounts expense for the year to be $1,500.00. What is the correct entry to record the estimated uncollectible accounts expense?
Debit Uncollectible Accounts Expense, $1,500.00; credit Accounts Receivable, $1,500.00
Debit Uncollectible Accounts Expense, $1,500.00; credit Allowance for Uncollectible Accounts, $1,500.00
Debit Accounts Receivable, $1,500.00; credit Uncollectible Accounts Expense, $1,500.00
Debit Allowance for Uncollectible Accounts, $1,500.00; credit Uncollectible Accounts Expense, $1,500.00
Burger Boy Diner purchased a commercial oven on August 1, 2010 for $6,800.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 7 years. What is the depreciation expense for 2010?
$375.00
$485.00
$525.00
$900.00
Creative Art Supplies purchased a new display easel on January 1, 2010 for $850.00. The estimated salvage (disposal) value is $50.00 and the estimated useful life is 5 years. What is the annual depreciation expense?
$850.00
$170.0
$160.00
$50.00
Burger Boy Diner purchased a commercial oven on January 1, 2009 for $5,800.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 7 years. What is the annual straight-line depreciation expense?
$200.00
$400.00
$800.00
$828.50
NC Office Supply purchased a heating system on September 1, 2010 for $18,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the depreciation expense for 2010?
$1,800.00
$1,200.00
$616.67
$600.00
Steve's Auto Parts purchased a display case on January 1, 2009 for $3,400.00. The estimated salvage (disposal) value is $200.00 and the estimated useful life is 10 years. What is the accumulated straight-line depreciation at the end of 2011?
$320.00
$640.00
$680.00
$960.00
Joe's Taxi Service purchased a new taxi on March 1, 2009 for $24,000.00. The estimated salvage (disposal) value is $3,000.00 and the estimated useful life is 3 years. What is the accumulated depreciation at the end of 2011?
$7,000.00
$19,833.33
$21,000.00
NC Office Supply purchased a heating system on September 1, 2009 for $18,500.00. The estimated salvage (disposal) value is $500.00 and the estimated useful life is 10 years. What is the accumulated depreciation at the end of 2011?
$4,200.00
$5,400.00
Steve's Auto Repair has depreciation expense of $3,500.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?
Debit Accumulated Depreciation $3,500.00; Credit Depreciation Expense $3,500.00
Debit Depreciation Expense $3,500.00; Credit Accumulated Depreciation $3,500.00
Debit Depreciation Expense $3,500.00; Credit Equipment $3,500.00
Debit Equipment $3,500.00; Credit Accumulated Depreciation $3,500.00
Michael's Soda Shoppe has depreciation expense of $1,250.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?
Debit Equipment $1,250.00; credit Accumulated Depreciation $1,250.00
Debit Depreciation Expense $1,250.00; credit Equipment $1,250.00
Debit Depreciation Expense $1,250.00; credit Accumulated Depreciation $1,250.00
Debit Accumulated Depreciation $1,250.00; credit Depreciation Expense $1,250.00
NC Office Supply has depreciation expense of $7,525.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?
Debit Equipment $7,525.00; credit Accumulated Depreciation $7,525.00
Debit Depreciation Expense $7,525.00; credit Equipment $7,525.00
Debit Depreciation Expense $7,525.00; credit Accumulated Depreciation $7,525.00
Debit Accumulated Depreciation $7,525.00; credit Depreciation Expense $7,525.00
Paul's Playscapes signed a $30,000, 60-day note at 5% on May 1, 2010. Paul's Playscapes uses a 360-day year.
Using the information given above, what is the maturity date of the note payable?
June 29, 2010
May 30, 2010
May 31, 2010
June 30, 2010
The Style Company signed a one-year, 10%, interest-bearing note for $10,000.00 with First American Bank. What is the journal entry for the issuance of the note payable?
Debit Cash $10,100.00; Credit Notes Payable $10,100.00
Debit Cash $10,000.00; Credit Notes Payable $10,000.00
Debit Notes Payable $10,000.00; Credit Cash $10,000.00
Debit Notes Payable $11,000.00; Credit Cash $11,000.00
Sports Warehouse received a payment in the amount of $697.50 for a note receivable. Interest on the note receivable was $47.50. What is the journal entry to record the payment of the note receivable?
Debit Cash $697.50; Credit Accounts Receivable $697.50
Debit Accounts Receivable $697.50; Credit Cash $697.50
Debit Cash $697.50; Credit Interest Income $47.50; Credit Notes Receivable $650.00
Debit Cash $650.00; Debit Interest Expense $47.50; Credit Accounts Receivable $697.50
High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note?
$82,500.00
$78,750.00
$75,750.00
$72,250.00
Beach Bums Surf Shop signed a 90-day, 5%, interest-bearing note for $3,000.00 with First National Bank. What is the journal entry for the issuance of the note payable?
Debit Cash $3,037.50; credit Notes Payable $3,037.50
Debit Cash $3,000.00; credit Notes Payable $3,000.00
Debit Notes Payable $3,000.00; credit Cash $3,000.00
Debit Notes Payable $3,150.00; credit Cash $3,150.00
Lighten Up Electrical Supply received a payment of a note receivable in the amount of $1,675.00. Interest on the note receivable was $75.00. What is the journal entry to record the payment of the note receivable?
Debit Cash $1,675.00; credit Accounts Receivable $1,675.00
Debit Accounts Receivable $1,675.00; credit Cash $1,675.00
Debit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable $1,600.00
Debit Cash $1,600.00; debit Interest Expense $1275.00; credit Accounts Receivable $1,675.00
Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?
Debit Notes Receivable $5,125.00; debit Interest Expense $125.00; credit Accounts Receivable/Marty Smith $5,125.00.
Debit Accounts Receivable/Marty Smith $5,000.00; credit Notes Receivable $5,000.00
Debit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00
Debit Notes Receivable $5,125.00; credit Accounts Receivable/Marty Smith $5,125.00
Wholesome Food Distributors granted an extension of time for the account payable of Moore Food Store for a 90-day, 8%, $10,000 note. Using a 360-day year, what is the journal entry for Moore Food Store to record the payment of the note payable?
Debit Cash $10,000.00; credit Notes Payable $10,000.00
Debit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00
Debit Cash $10,200.00; credit Notes Payable $10,000.00; credit Interest Expense $200.00
Debit Notes Payable $10,200.00; credit Interest Expense $200.00; credit Cash $10,000.00
Carson Tyler has an overdue account in the amount of $415.50 with Mountain Oil Company. Mountain Oil Company agrees to accept a note receivable from Carson. What is the journal entry to record the acceptance of the note receivable?
Debit Cash $415.50; credit Accounts Receivable/Carson Tyler $415.50
Debit Accounts Receivable/Carson Tyler $415.50; credit Notes Receivable $415.50
Debit Notes Receivable $415.50; credit Accounts Receivable/Carson Tyler $415.50
Debit Accounts Receivable/Carson Tyler $415.50; credit Cash $415.50
Debit Notes Receivable $5,125.00; debit Interest Expense $125.00; credit Accounts Receivable/Marty Smith $5,125.00
