Exam 8: Accounts Receivable and Further Record-Keeping

K Ltd reported beginning and ending balances in the Allowance for doubtful debts account of $723 000 and $904 000 respectively.It also reported that write-offs of bad debts amounted to $648 000.Assuming that no previously written-off accounts had been collected,what amount did K Ltd record as bad debt expense for the period?

Management uses the percentage-of-sales approach method to calculate the allowance for doubtful debts.Management calculated the allowance for doubtful debts on the basis of 2 per cent of sales.However,by year-end it was aware that the rate should have really been 3 per cent of sales.Management does not adjust the allowance for doubtful debts at year-end.As a result:

Blue Shoes Ltd has gone bankrupt and will not pay $10 000 to XYZ.XYZ has accounts receivable of $12 million and an allowance for doubtful debts of $500 000.XYZ does not adjust its accounts for the $10 000 that will not be paid by Blue Shoes Ltd.Which of the following remarks is true about the financial statements?

Which of these items is the source document for the purchase journal?

Gum Ltd maintains subsidiary ledgers for debtors and creditors.At 1 July 2015,debtors owed $4000,and $7200 was owing to creditors.Transactions for year ended 30 June 2016 were as follows: - What was the balance of the creditors control account at 30 June 2016?

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000.It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500.It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. - What was the journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Houdini Ltd?

'Accounts receivable' is a credit column in the:

The trial balance of Wentworth Ltd included the following balances: An account for $3000 was determined to be uncollectable.The journal entry to be made on that date would include a debit to:

Gum Ltd maintains subsidiary ledgers for debtors and creditors.At 1 July 2015,debtors owed $4000,and $7200 was owing to creditors.Transactions for year ended 30 June 2016 were as follows: - What was the balance of the debtors control account at 30 June 2016?

Plume Ltd maintains subsidiary ledgers for debtors and creditors.At 1 January 2016,debtors owed $3000 and creditors were owed $5600.Transactions for the month of January 2016 were as follows: -What was the balance of the debtors control account at 31 January 2016?

The Allowance for doubtful debts account would appear in the balance sheet under:

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000.It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500.It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. -What was the journal entry needed to write off the debt of Houdini Ltd as irrecoverable?

Plume Ltd maintains subsidiary ledgers for debtors and creditors.At 1 January 2016,debtors owed $3000 and creditors were owed $5600.Transactions for the month of January 2016 were as follows: - What was the balance of the creditors control account at 31 January 2016?

Which of the following statements about subsidiary ledgers and control accounts is NOT true?

Which of the following statements about the Allowance for doubtful debts account is true?

The general ledger account representing the subsidiary ledger is known as a control account because:

In posting the total of the cash column in a cash receipts journal,the entry that would be made is:

Which of these items is the source document for the sales journal?

The balance in the Allowance for doubtful debts account represents:

Griffin Ltd made a sale of $800 to a customer on terms of 2/10,n/30 on 1 July.The account was paid on 8 July.Griffin Ltd would make which of the following postings to the ledger on 8 July?