#34 them prior to their maturity.с.c. The transferee has the right to pledge or exchange the transferred assets.d. All of these answers are correct.34. Which of the following is a generally accepted method of determining the amount ofthe adjustment to bad debt expense?a. A percentage of sales adjusted for the balance in the allowanceb. A percentage of sales not adjusted for the balance in the allowancec. A percentage of accounts receivable not adjusted for the balance in theallowanced. An amount derived from aging accounts receivable and not adjusted for thebalance in the allowance35. Which of the following is included in the normal journal entry to record the collectionof accounts receivable previously written off when using the allowance method?a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable.Escaneado con Cams

Bad debt expense are expense related to the accounts receivable, from whom either it is sure that…

Answered: 34. Which of the following is a…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter6: Losses And Loss Limitations

Section: Chapter Questions

Problem 1BD

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Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payable
Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
When does a company record the transfer of accounts receivable as a sale? As a secured borrowing (a liability)?
Which of the following would trigger a subtraction in the indirect operating section? A. gain on sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payable
The net figure for accounts receivable (debtors) after deducting the allowance for uncollectible debts account: Select one: a. overstates the realisable value of debtors. b. is a contra account. c. understates the realisable value of debtors. d. represents the expected cash to be collected. e. None of the above answers is correct.
The adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account and deduct the provision from debtors O b. Debit profit and loss account and deduct the provision from debtors Oc. Credit profit and loss account and add the provision to debtors Od. Debit profit and loss account and add the provision to debtors
Which method of recording bad debt loss is consistent with accrual accounting? A. Allowance method B. direct write off method C. Percent of sales method D. Percent of accounts receivable method
1. Total receivables will remain unchanged for which of the following? a) Notes receivable discounting without recourse b) Collection of trade accounts receivable c) Assignment of receivables d) Factoring of receivables 2. An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE? a) Both investments may be classified as Investment in Associate b) The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value c) Both investments may be classified as Investment at Fair Value d) The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate 3. Purchases of merchandise inventories are always recorded net of: a) Trade discount b) Cash discount c) Sales discount d) Purchase discount 4. Which of the statements is incorrect concerning the depreciation methods? a) Under the output method, the cost per unit of…
19.Which of the following statements is incorrect? a. Trade receivables are recognized simultaneously with the recognition of related revenue when the criteria for revenue recognition are met. b. Under the gross price method, sales discounts are reported as a deduction from sales revenue. c. When accounts receivable are pledged against borrowing, the amount of accounts receivable pledged shall be included in the total receivables with disclosures. d. When discounting notes, the term discount period refers to the period of time that the note has been held by the endorser or payee; i.e. the period from the date of the note up to the date of discounting.
18 - The entity made a discount due to the premature payment of the receivable arising from the sale it made on credit. In which account and how should this transaction be recorded? A) Domestic Sales account receivable B) Sales Discounts account receivable C) To the debt of the Domestic Sales accountD) To the debt of General Administrative Expenses accountE) To the debt of Sales Discounts account
If the provision for doubtful debt is increased, the accounting adjustment will be: Select one: a. Debit: Bad debt expense Credit: Trade receivables b. Debit: Bad debt expense Credit: Provision for bad debts c. Debit: Provision for bad debts Credit: Bad debt expense d. Debit: Trade receivables Credit: Bad debt expense
________________1. This is the criterion to determine whether the transfer is accounted for as borrowing._______________ 2. What account to debit if the company pays a delinquent notes receivable that was previously discounted._______________ 3. What account to credit if the customer’s notes receivable become delinquent and was not previously discounted.

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