1. What is the process of analyzing accounts receivable and classifying by how old the due dates are?
2. What is the name of the expense used to track receivable accounts estimated to be uncollectible?
3. Name one method used to estimate Bad Debts.
4. Name another method used to estimate Bad Debts.
5. Name the receivable created when customers are issued a formal, written document including specific terms of payment.
6. In what section on the Balance Sheet would Accounts Receivable be located?
7. What kind of account is Allowance for Doubtful Accounts?
8. Accounts Receivable should be collected in about how many days?
9. What is the name of the expense used to record the usage of fixed assets?
10. What is the name of the expense used to record the periodic write off of the cost of intangible assets?
11. What is the name of the expense used to record the utilization of natural resources?
12. Name the most popular depreciation method used by businesses today.
13. What kind of account is Accumulated Depreciation?
14. Is Land depreciated, yes or no?
15. Name one of the payroll taxes paid by employers.
16. Name another one of the payroll taxes paid by employers.
17. Name yet another one of the payroll taxes paid by employers.
18. What kind of account is Interest Payable?
19. Gross Wages LESS Deductions EQUAL what?
20. Do employees have contributions deducted from their paychecks for federal and state unemployment, yes or no?
KEY INFORMATION: On 3/5/07, our company, ABC Textbooks, Inc., borrows
$150,000 from the First Bank & Trust. The terms of the note are
90-days at 8%.
21. What is the maturity date of the note?
22. – 23. What is the amount of total interest on this note?
24. – 25. What is the maturity value of the note?
#2: Record journal entries in the general journal below for Jax-Mart.
Sample accounts include: Accounts Receivable, Allowance for Doubtful
Accounts, Sales, Cash, Uncollectible Accounts Expense, and Notes
Receivable. DO NOT ABBREVIATE.
1/2/07 Using the analysis of receivables method, write off Mr. Jones
account of $585. His bankruptcy settlement was just completed. (3
points)
11/25/07 Mr. Jones paid his $585 balance in full. Record the journal
entry to reinstate his account, and then record the cash receipt. (2
entries required)
12/31/07 Using the analysis of receivables method, record the provision
for estimated uncollectible accounts at the end of the year at 10% with
receivables of $175,000. Note that the balance in Allowance for
Doubtful Accounts has a credit balance of $2000 before this journal
entry.
12/31/07 - Now trying using a different method. Using the percent of
sales method, record the provision for estimated uncollectible accounts
at the end of the year, at 1% with sales of $1,500,000
#3: Instructions: Compute depreciation expense for two years using 3
different methods using the following information. Show all work for
maximum points!!!:
• Machinery was acquired on the first day of the current year for $420,000
• The estimated useful life is 5 years or 40,000 hours
• The residual value is estimated at $20,000
• During year one, the machinery was used for 11,500 hours
• During year two, the machinery was used for 17,000 hours
METHOD YEAR ONE YEAR TWO
Straight Line (3 points)
Units of Production (6 points)
Double Declining Balance (6 points)
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