Quiz
Practice Test - UNIT #7
Create a free account to finish this quiz
Save your progress and see your final score.
Already have an account? Sign in
Questions in this quiz (32)
1Hair 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?
- A$24,000.00
- B$24.00
- C$240.00
- D$2,400.00
2On 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?
- A$17.50
- B$175.00
- C$1,750.00
- D$17,500.00
3Western 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?
- A$52.75
- B$527.50
- C$5,275.00
- D$52,750.00
4On 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?
- ADebit Accounts Receivable/ Pen & Paper, $225.00; Credit Allowance for Uncollectible Accounts, $225.00
- BDebit Accounts Receivable/ Pen & Paper, $225.00; Credit Uncollectible Accounts Expense, $225.00
- CDebit Uncollectible Accounts Expense, $225.00; Credit Accounts Receivable/ Pen & Paper, $225.00
- DDebit Uncollectible Accounts Expense, $225.00; Credit Allowance for Uncollectible Accounts, $225.00
5Steve'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?
- ADebit Accounts Receivable/John Taylor, $375.00; Credit Uncollectible Accounts Expense, $375.00
- BDebit Accounts Receivable/John Taylor, $375.00; Credit Allowance for Uncollectible Accounts, $375.00
- CDebit Uncollectible Accounts Expense, $375.00; Credit Accounts Receivable/John Taylor, $375.00
- DDebit Uncollectible Accounts Expense, $375.00; Credit Allowance for Uncollectible Accounts, $375.00
6Legal 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?
- ADebit Accounts Receivable/Joe Coffey, $250.00; Credit Allowance for Uncollectible Accounts, $250.00
- BDebit Accounts Receivable/Joe Coffey, $250.00; Credit Uncollectible Accounts Expense, $250.00
- CDebit Uncollectible Accounts Expense, $250.00; Credit Accounts Receivable/Joe Coffey, $250.00
- DDebit Uncollectible Accounts Expense, $250.00; Credit Allowance for Uncollectible Accounts, $250.00
7Workman 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?
- ADebit Uncollectible Accounts Expense, $950.00; credit Accounts Receivable, $950.00
- BDebit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00
- CDebit Accounts Receivable, $950.00; credit Uncollectible Accounts Expense, $950.00
- DDebit Allowance for Uncollectible Accounts, $950.00; credit Uncollectible Accounts Expense, $950.00
8Hair 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?
- ADebit Uncollectible Accounts Expense, $4,250.00; credit Accounts Receivable, $4,250.00
- BDebit Uncollectible Accounts Expense, $4,250.00; credit Allowance for Uncollectible Accounts, $4,250.00
- CDebit Accounts Receivable, $4,250.00; credit Uncollectible Accounts Expense, $4,250.00
- DDebit Allowance for Uncollectible Accounts, $4,250.00; credit Uncollectible Accounts
Expense, $4,250.00
9Mother 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?
- ADebit Accounts Receivable/Little Angels, $125.00; credit Allowance for Uncollectible Accounts, $125.00
- BDebit Accounts Receivable/Little Angels, $125.00; credit Uncollectible Accounts Expense, $125.00
- CDebit Uncollectible Accounts Expense, $125.00; Credit Accounts Receivable/Little Angels, $125.00
- DDebit Uncollectible Accounts Expense, $125.00; credit Allowance for Uncollectible Accounts, $125.00
10Mitchell 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?
- ADebit Accounts Receivable/Lark Construction, $1,200.00; credit Allowance for Uncollectible Accounts, $1,200.00
- BDebit Accounts Receivable/Lark Construction, $1,200.00; credit Uncollectible Accounts Expense, $1,200.00
- CDebit Uncollectible Accounts Expense, $1,200.00; credit Accounts Receivable/Lark Construction, $1,200.00
- DDebit Uncollectible Accounts Expense, $1,2000.00; credit Allowance for Uncollectible Accounts, $1,200.00
11Maple 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?
- A$9.25
- B$92.50
- C$925.00
- D$9,250.00
12Pet 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?
- ADebit Uncollectible Accounts Expense, $1,500.00; credit Accounts Receivable, $1,500.00
- BDebit Uncollectible Accounts Expense, $1,500.00; credit Allowance for Uncollectible Accounts, $1,500.00
- CDebit Accounts Receivable, $1,500.00; credit Uncollectible Accounts Expense, $1,500.00
- DDebit Allowance for Uncollectible Accounts, $1,500.00; credit Uncollectible Accounts Expense, $1,500.00
13Burger 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?
- A$375.00
- B$485.00
- C$525.00
- D$900.00
14Creative 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?
- A$850.00
- B$170.0
- C$160.00
- D$50.00
15Burger 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?
- A$200.00
- B$400.00
- C$800.00
- D$828.50
16NC 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?
- A$1,800.00
- B$1,200.00
- C$616.67
- D$600.00
17Steve'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?
- A$320.00
- B$640.00
- C$680.00
- D$960.00
18Joe'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?
- A$7,000.00
- B$19,833.33
- C$21,000.00
- D$24,000.00
19NC 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?
- A$1,800.00
- B$2,400.00
- C$4,200.00
- D$5,400.00
20Steve'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?
- ADebit Accumulated Depreciation $3,500.00; Credit Depreciation Expense $3,500.00
- BDebit Depreciation Expense $3,500.00; Credit Accumulated Depreciation $3,500.00
- CDebit Depreciation Expense $3,500.00; Credit Equipment $3,500.00
- DDebit Equipment $3,500.00; Credit Accumulated Depreciation $3,500.00
21Michael'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?
- ADebit Equipment $1,250.00; credit Accumulated Depreciation $1,250.00
- BDebit Depreciation Expense $1,250.00; credit Equipment $1,250.00
- CDebit Depreciation Expense $1,250.00; credit Accumulated Depreciation $1,250.00
- DDebit Accumulated Depreciation $1,250.00; credit Depreciation Expense $1,250.00
22NC 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?
- ADebit Equipment $7,525.00; credit Accumulated Depreciation $7,525.00
- BDebit Depreciation Expense $7,525.00; credit Equipment $7,525.00
- CDebit Depreciation Expense $7,525.00; credit Accumulated Depreciation $7,525.00
- DDebit Accumulated Depreciation $7,525.00; credit Depreciation Expense $7,525.00
23Paul'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?- AJune 29, 2010
- BMay 30, 2010
- CMay 31, 2010
- DJune 30, 2010
24The 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?
- ADebit Cash $10,100.00; Credit Notes Payable $10,100.00
- BDebit Cash $10,000.00; Credit Notes Payable $10,000.00
- CDebit Notes Payable $10,000.00; Credit Cash $10,000.00
- DDebit Notes Payable $11,000.00; Credit Cash $11,000.00
25Sports 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?
- ADebit Cash $697.50; Credit Accounts Receivable $697.50
- BDebit Accounts Receivable $697.50; Credit Cash $697.50
- CDebit Cash $697.50; Credit Interest Income $47.50; Credit Notes Receivable $650.00
- DDebit Cash $650.00; Debit Interest Expense $47.50; Credit Accounts Receivable $697.50
26High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note?
- A$82,500.00
- B$78,750.00
- C$75,750.00
- D$72,250.00
27Beach 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?
- ADebit Cash $3,037.50; credit Notes Payable $3,037.50
- BDebit Cash $3,000.00; credit Notes Payable $3,000.00
- CDebit Notes Payable $3,000.00; credit Cash $3,000.00
- DDebit Notes Payable $3,150.00; credit Cash $3,150.00
28Lighten 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?
- ADebit Cash $1,675.00; credit Accounts Receivable $1,675.00
- BDebit Accounts Receivable $1,675.00; credit Cash $1,675.00
- CDebit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable $1,600.00
- DDebit Cash $1,600.00; debit Interest Expense $1275.00; credit Accounts Receivable $1,675.00
29Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?
- ADebit Notes Receivable $5,125.00; debit Interest Expense $125.00; credit Accounts Receivable/Marty Smith $5,125.00.
- BDebit Accounts Receivable/Marty Smith $5,000.00; credit Notes Receivable $5,000.00
- CDebit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00
- DDebit Notes Receivable $5,125.00; credit Accounts Receivable/Marty Smith $5,125.00
30Wholesome 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?
- ADebit Cash $10,000.00; credit Notes Payable $10,000.00
- BDebit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00
- CDebit Cash $10,200.00; credit Notes Payable $10,000.00; credit Interest Expense $200.00
- DDebit Notes Payable $10,200.00; credit Interest Expense $200.00; credit Cash $10,000.00
31Carson 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?
- ADebit Cash $415.50; credit Accounts Receivable/Carson Tyler $415.50
- BDebit Accounts Receivable/Carson Tyler $415.50; credit Notes Receivable $415.50
- CDebit Notes Receivable $415.50; credit Accounts Receivable/Carson Tyler $415.50
- DDebit Accounts Receivable/Carson Tyler $415.50; credit Cash $415.50
32Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?
- ADebit Notes Receivable $5,125.00; debit Interest Expense $125.00; credit Accounts Receivable/Marty Smith $5,125.00
- BDebit Accounts Receivable/Marty Smith $5,000.00; credit Notes Receivable $5,000.00
- CDebit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00
- DDebit Notes Receivable $5,125.00; credit Accounts Receivable/Marty Smith $5,125.00
Information
- Description
- practice quiz for specialized accounting acitivites
- Author
- Kathleen Keller
- Language
- English
- Views
- 157
- History
- Created on 14 Nov 2017 · updated on 14 Nov 2017
- Tags
- Rating
- No ratings yet Rate this quiz