Methods of accounting for uncollectible account


Question 1: How should unearned discounts, finance charges, And interest included in the face amount of installment accounts receivable be presented in the Balance sheet?

A. As a current liability
B. As a deduction from the related installment accounts Receivable?
C. Within the net amount of installment accounts receivable?
D. As an addition to the related installment accounts receivable?

Question 2: Oswald company's account balances at december 31 for Accounts receivable  and the related allowance for doubtful Accounts are $750,000 and $20,000, respectively. From an analysis Of accounts receivable, it is estimated that $42,000 of the december 31 receivables will be uncollectible. After an adjustment for the above facts, the net realizable value of accounts receivable

A. $750,000
B. $730,000
C. $688,000
D. $708,000

Question 3: Which groups of items listed below should be included in the  Cash account?

A. Silver coins, postage stamps, demand deposits, personal checks?
B. Promissory notes, demand deposits, money orders, silver coins
C. Money orders, post dated  personal checks, time deposits.
D. Silver coins, money orders, demand deposits, personal checks.

Question 4: Which of the following methods of accounting for uncollectible Accounts does not properly match costs with revenues?

A. Percentage of sales
B. Percentage of receivables
C. Direct write-off
D. Aging schedules

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Accounting Basics: Methods of accounting for uncollectible account
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