Which one of the following entries are recorded at the end of a fiscal period to update the general ledger accounts?

a) closing
b) adjusting
c) reversing
d) posting

Sunland Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $310000 and credit sales are$1240000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Sunland Company make if the Allowance for Doubtful Accounts has a credit balance of $3100 before adjustment?

a. Bad Debt Expense 12400 Accounts Receivable 12400
b. Bad Debt Expense 6200 Allowance for Doubtful Accounts 6200
c. Bad Debt Expense 21700 Allowance for Doubtful Accounts 21700
d. Bad Debt Expense 15500 Allowance for Doubtful Accounts 15500

Which is the fourth amount section in a ten-column worksheet?

a.) income statement
b.) balance sheet
c.) adjusted trial balance
d.) adjustments

One of the weaknesses of the direct write-off method is that it:

a. understates accounts receivable on the balance sheet
b. violates the matching principle
c. is too difficult to use for many companies
d. is based on estimates

You have just received notice that a customer of yours with an Account Receivable balance of S100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to

a. debit Bad Debt Expense and credit Allowance for Doubtful Accounts
b. debit Bad Debt Expense and credit Accounts Receivable
c. debit Allowance for Doubtful Accounts and credit Accounts Receivable
d. debit Allowance for Doubtful Accounts and credit Bad Debt Expense

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of$51,000. What is the net realizable value of the accounts receivable?

a. $51,000
b.$289,000
c. $340,000
d.$391,000

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off the entry to record the write-off against the allowance account results in:

A) An increase in the expenses of the current period.
B) An increase in current assets.
C) A reduction in equity
D) No effect on the expenses of the current period,
E) A reduction in current liabilities

For a journal entry with only two lines, the following entry is valid: Increase in an asset, Increase in a Owners' Equity.

A) False

B) True

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

a. Uncollectible Accounts Expense
b. Allowance for Doubtful Accounts
c. Accounts Receivable
d. Interest Expense

Which of the following is a benefit of a diverse work environment?

a. Being better ability to create the products desired by consumers
b. Experiencing fewer discrimination lawsuits, fewer union clashes, and less government regulatory action
c. Improving employee relationships and increasing productivity
d. All are benefits of a diverse work environment.

The accounts in the chart of accounts are arranged in?

a) alphabetical order
b) numerical order
c) date order
d) any order

Which one of the following accounts will not appear in a balance sheet?

a.) temporary account
b.) permanent account
c.) asset account
d.) owners equity account

For a journal entry with only two lines, the following entry is valid: Decrease in an asset, Decrease in an Expense.

A) False

B) True

Your CPA firm is auditing a client with a December 31, 2020 year-end. Your firm expects to complete the audit fieldwork on March 15, 2021. In practice, the letters of audit inquiry should be sent to the client's external legal counsel on approximately:

a. September 1, 2020
b. January 1, 2021
c. March 1, 2021
d. March 15, 2021