pls answer no. 1 and 2 PROBLEM 9: MULTIPLE CHOICE1. Which of the following statements is correct?. Accounts payable give rise to an expense called bad debtsexpense.. lf the total debits exceed the total credits in the incomestatement columns of a worksheet, there is profit.c If the total credits exceed the total debits in the balancesheet columns of a worksheet, there.is loss.d. The preparation of closing entries is an optional step in theaccounting cycle.2. When preparing a trial balance and the total debits and totalcredits do not equal, what is the first thing that you shouldondo?a. Find the error in the journal.b. Take a peek at your classmate's worksheet.c. Add the amounts again.d. Quit accounting and shift to another course.

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Description: pls answer no. 1 and 2 PROBLEM 9: MULTIPLE CHOICE1. Which of the following statements is correct?. Accounts payable give rise to an expense called bad debtsexpense.. lf the total debits exceed the total credits in the incomestatement columns of a wor

Accounts payable: the amount that the company should to pay in a specified future date Bad Debt: the…

Answered: Which of the following statements is…

Business

Accounting

Which of the following statements is correct?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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14 Momentum Products Incorporated just recorded an adjusting journal entry for the current year's estimate of bad debts. Assuming all else is equal, this adjusting journal entry will cause: Multiple Choice the accounts receivable turnover ratio to increase. net income to increase. total assets to remain unchanged. net accounts receivable to increase.
Statement 1: The direct write-off method of bad debts requires a journal entry when the receivables become doubtful of collection. Statement 2: An aging of accounts receivable uses the income statement approach in estimating bad debts expense. a. Only Statement 1 is trueb. Only Statement 2 is truec. Both Statement 1 and Statement 2 are trued. Both Statement 1 and Statement 2 are false Statement 1: When cash is received in lieu of stock dividends, there may be a gain on sale of the financial asset. Statement 2: When dividends were distributed using stocks from another corporation, it is appropriately called as a property dividend. a. Only Statement 1 is trueb. Only Statement 2 is truec. Both Statement 1 and Statement 2 are trued. Both Statement 1 and Statement 2 are false Statement 1: A share split increases the number, par value, and market value of the shares. Statement 2: From the point of view of the investor, the redemption of the shares is considered an impairment of the…
Indicate using a (1), (−), or (0) whether each of the following events would probably cause accounts receivable (A/R), sales, and profits to increase, decrease, or be affected in an indeterminate manner: A/R Sales ProfitsThe firm restricts its credit standards. ______________ ______________ ______________The terms of trade are changed from 2/10, net 30, to 3/10, net 30. ______________ ______________ ______________The terms are changed from 2/10, net 30, to 3/10, net 40. ______________ ______________ ______________The credit manager gets tough with past-due accounts. ______________ ______________ ______________
a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.
3. What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit? 4. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $673,400 and Allowance for Doubtful Accounts has a balance of $11,900. Describe how the accounts receivable and the allowance for doubt-ful accounts are reported on the balance sheet.
22. Which situation indicates a loss on the income statement when preparing worksheet?A. Total debits equal total credits.B. Total credits exceed total debitsC. Total debits exceed total creditD. None of the choices 23. Which of the following is not shown in the Balance Sheet?A. RevenueB. CashC. LandD. Accounts Payable 24.In which columns of a worksheet would the adjusted balance of accumulated depreciation appear?A. Adjusted trial balance credit, Balance Sheet debit.B. Adjusted trial balance credit, income statement creditC. Adjusted trial balance debit, balance sheet debitD. Adjusted trial balance credit, balance sheet credit 26. If total credits exceed total debits in the Balance Sheet columns of a worksheet:A. A loss has occurred.B. A mistake has been made.C. A profit has occurredD. No conclusion can be drawn. 27. The components of the balance sheet equation are:A. Assets, income and owner's equity.B. Assets, liabilities and owner's equity.C. Income, expenses and profit.D.…
Choose the correct letter of answer Entity A has accounts receivable of ₱500,000 and a related allowance for bad debts of ₱120,000. How much is the carrying amount of the accounts receivable?A. 620,000B.500,000C. 480,000D. 380,000 If deposit for lease contract was recorded as Rent Expense,A. expense is understated.B.asset is not affected.C.profit is overstated.D. owner’s equity is understated. Inventory, beg. ₱50,000; Net purchases, ₱120,000; Cost of goods sold, ₱80,000. How much is the Inventory, end.?A. 90,000B. 120,000C. 70,000D. 80,000
S1: The term “past due” refers to the period before the maximum credit term. S2: The rate for estimating doubtful accounts is usually determined using future experiences of the entity S3: Direct write off method does not require recognition for a doubtful account. S4: The unadjusted allowance for doubtful accounts is ignored in determining the doubtful account expense in percent of sale method. a. All statements are correct. b. All statements are incorrect. c. Only two statements are correct. d. Only one statement is correct. e. Only one statement is incorrect.
Help me answer the 3 question 18. Which of the following situations will cause total debit balance to be greater than the total credit balance? Select one: a. The amount extracted from a creditor’s account is posted to the wrong side of the trial balance. b. Sales of goods are recorded as purchases of goods in the ledger accounts. c. The amount extracted from the account of a debtor, Mr. Lee is posted as P1,000 instead of P1,100 in the trial balance. d. The purchase of fixture is recorded in the furniture account. 19. Which of the following statements regarding a trial balance is incorrect? Select one: a. A trial balance proves that no errors of any kind have been made in the account during the accounting period. b. A trial balance is a list of all of the open accounts in the ledger with their balances as of a given date. c. A trial balance helps to localize errors within an identifiable time period. d. A trial balance is a test of the equality of the debit…
Match each of the following terms with its definition. Terms Definitions _____ 1. Accounts receivable a. Reductions in amount owed by customers because of deficiency in products or services. _____ 2. Credit sales b. Formal credit arrangements evidenced by a written debt instrument. _____ 3. Sales allowances c. Amount of cash owed to the company by customers from the sale of products or services on account. _____ 4. Allowance method d. Recording bad debt expense at the time the account is known to be uncollectible. _____ 5. Notes receivable e. Sales on account to customers. _____ 6. Direct write-off method f. Reductions in amount owed by customers if payment on account is made within a specified period of time. _____ 7. Net revenues g. Total revenues less returns, allowances, and discounts. _____ 8. Sales discounts h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts. _____ 9. Aging method i. Estimated percentage of…
Under the allowance method for uncollectible accounts, 1.the entry to write off an uncollectible account only involves statement of financial position accounts. 2.allowance for doubtful accounts increases, while accounts receivables decrease when writing off an uncollectible account. 3.bad debts expense is not recorded until a customer defaults. 4.bad debt expense increases, while allowance for doubtful accounts decreases when writing off an uncollectible account.
Part 1: Prepare Journal Entries Part 2: Accounting for Bad Debts (Please complete the list below) Prepare T-Accounts for A/R; Allowance for Doubtful Accounts and Bad Debt Expense Put beginning balances that are given in these accounts. Record Journal Entries for Current Year Activity Post the JEs Activity to T-accounts above. Prepare Adjusting Journal Entries for "a" and "b" based on the assumptions given in "a" and "b" Indicate the following information that would appear on the financial statements under "a" and "b" Accounts Receivable Allowance for Doubtful Accounts Net realizable A/R --- (just subtract the two above) Bad Debt Expense Thank you