BSC2346 MODULE 9 AP QUIZ RASMUSSEN
COLLEGE PREMIUM ANSWER KEY ACCURATE
AND VERIFIED
◉ On January 16, a credit sale was made for 600. Terms for the sale
were 4/20, n/60. Cash for the sale was collected on January 28. What
debit or credit should be included in the journal entry to record the sale
on January 16? Answer: debts accounts receivable for 600
◉ Author Company estimated bad debt expense for the year to be
21,000. Which debit or credit is included in the adjusting entry to record
bad debt expense for the year? Answer: credit allowance for bad debts
for 21,000
◉ Kretsmart Company uses the allowance method to account for bad
debts, which it has estimated to be 10,000 for the year. Total accounts
written off as uncollectible during the year were 8,000. At year end,
which debit or credit is included in the summary journal entry to record
date write-off of uncollectible accounts during the year? Answer: debit
allowance for bad debts for 8,000
◉ Strime Company's controller estimated bad debt expense using the
percentage of accounts receivable method. Total sales for the year were
500,000. The ending balance in the accounts receivable was 100,000. An
examination of the outstanding accounts at the end of the year indicates
that approximately 12 percent of these accounts will ultimately prove to
be uncollectible. Before any adjustment, the balance in the allowance for
COLLEGE PREMIUM ANSWER KEY ACCURATE
AND VERIFIED
◉ On January 16, a credit sale was made for 600. Terms for the sale
were 4/20, n/60. Cash for the sale was collected on January 28. What
debit or credit should be included in the journal entry to record the sale
on January 16? Answer: debts accounts receivable for 600
◉ Author Company estimated bad debt expense for the year to be
21,000. Which debit or credit is included in the adjusting entry to record
bad debt expense for the year? Answer: credit allowance for bad debts
for 21,000
◉ Kretsmart Company uses the allowance method to account for bad
debts, which it has estimated to be 10,000 for the year. Total accounts
written off as uncollectible during the year were 8,000. At year end,
which debit or credit is included in the summary journal entry to record
date write-off of uncollectible accounts during the year? Answer: debit
allowance for bad debts for 8,000
◉ Strime Company's controller estimated bad debt expense using the
percentage of accounts receivable method. Total sales for the year were
500,000. The ending balance in the accounts receivable was 100,000. An
examination of the outstanding accounts at the end of the year indicates
that approximately 12 percent of these accounts will ultimately prove to
be uncollectible. Before any adjustment, the balance in the allowance for
