# Practice Test - UNIT #7

Quiz by Kathleen Keller, updated more than 1 year ago
 Created by Kathleen Keller over 3 years ago
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### Description

practice quiz for specialized accounting acitivites

## 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?
• \$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?
• \$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?
• \$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?
• 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?
• 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?
• 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?
• 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?
• 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?
• 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?
• 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?
• \$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?
• 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?
• \$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?
• \$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?
• \$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?
• \$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?
• \$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?
• \$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?
• \$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?
• 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?
• 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?
• 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?
• 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?
• 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?
• 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?
• \$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?
• 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?
• 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?
• 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?
• 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?
• 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?
• 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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