Answer Happy

15. What type of account is accounts receivable?
A. Contra Asset
B. Liability
C. Equity--Capital
D. Equity--Revenue
E. None of the above
16. In a bank reconciliation, if the balance in cash per the
Company’s books is 100,000 and the deposit in transit is 20,000 and
the interest revenue is 5,000 and the EFT collection is 10,000 and
the bank service charge is 1,000 and the NSF check is 24,000, what
is the adjusted book balance?
A. 160,000
B. 140,000
C. 120,000
D. 110,000
E. None of the above
17. If the balance in accounts receivable is $120,000 and the
balance in allowance for bad debts is $10,000, what is the net
realizable value of accounts receivable?
A. 130,000
B. 120,000
C. 110,000
D. 100,000
E. None of the above
18. What is the amount of total interest to be earned on a
$6,000 note at 10%, for 2 months?
A. $600
B. 300
C. 150
D. 100
E. None of the above
19. What type of account is allowance for bad debts?
A. Asset
B. Contra Revenue
C. Contra Asset
D. Equity--Revenue
E. None of the above
20. At the end of its first year of operations, Company A
estimated that $10,000 of its $200,000 of accounts receivable were
uncollectible. What is the journal entry to record the $10,000 of
uncollectible accounts receivable?
A. Dr. Bad Debts Expense 10,000; Cr. Accounts Receivable
10,000
B. Dr. Accounts Receivable 10,000; Cr. Bad Debts Expense
10,000
C. Dr. Bad Debts Expense 10,000; Cr. Allowance for Bad Debts
10,000
D. Dr. Allowance for Bad Debts 10000; Cr. Bad Debts Expense
10000
E. None of the above