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Practice Test - UNIT #7

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practice quiz for specialized accounting acitivites
Kathleen Keller
Quiz by Kathleen Keller, updated more than 1 year ago
Kathleen Keller
Created by Kathleen Keller over 6 years ago
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Resource summary

Question 1

Question
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?
Answer
  • $24,000.00
  • $24.00
  • $240.00
  • $2,400.00

Question 2

Question
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?
Answer
  • $17.50
  • $175.00
  • $1,750.00
  • $17,500.00

Question 3

Question
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?
Answer
  • $52.75
  • $527.50
  • $5,275.00
  • $52,750.00

Question 4

Question
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?
Answer
  • 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

Question 5

Question
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?
Answer
  • 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

Question 6

Question
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?
Answer
  • 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

Question 7

Question
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?
Answer
  • 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

Question 8

Question
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?
Answer
  • 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

Question 9

Question
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?
Answer
  • 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

Question 10

Question
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?
Answer
  • 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

Question 11

Question
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?
Answer
  • $9.25
  • $92.50
  • $925.00
  • $9,250.00

Question 12

Question
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?
Answer
  • 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

Question 13

Question
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?
Answer
  • $375.00
  • $485.00
  • $525.00
  • $900.00

Question 14

Question
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?
Answer
  • $850.00
  • $170.0
  • $160.00
  • $50.00

Question 15

Question
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?
Answer
  • $200.00
  • $400.00
  • $800.00
  • $828.50

Question 16

Question
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?
Answer
  • $1,800.00
  • $1,200.00
  • $616.67
  • $600.00

Question 17

Question
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?
Answer
  • $320.00
  • $640.00
  • $680.00
  • $960.00

Question 18

Question
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?
Answer
  • $7,000.00
  • $19,833.33
  • $21,000.00
  • $24,000.00

Question 19

Question
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?
Answer
  • $1,800.00
  • $2,400.00
  • $4,200.00
  • $5,400.00

Question 20

Question
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?
Answer
  • 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

Question 21

Question
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?
Answer
  • 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

Question 22

Question
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?
Answer
  • 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

Question 23

Question
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?
Answer
  • June 29, 2010
  • May 30, 2010
  • May 31, 2010
  • June 30, 2010

Question 24

Question
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?
Answer
  • 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

Question 25

Question
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?
Answer
  • 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

Question 26

Question
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?
Answer
  • $82,500.00
  • $78,750.00
  • $75,750.00
  • $72,250.00

Question 27

Question
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?
Answer
  • 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

Question 28

Question
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?
Answer
  • 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

Question 29

Question
Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?
Answer
  • 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

Question 30

Question
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?
Answer
  • 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

Question 31

Question
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?
Answer
  • 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

Question 32

Question
Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable?
Answer
  • 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
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