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Accounts Receivable and Bad
Debts Expense (Quiz)

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If you have difficulty answering the following questions, learn more about this topic by reading our
Accounts Receivable and Bad Debts Expense (Explanation).

1. When a sale is made with the credit terms of 2/10, net 30, the "10" refers to the __________ period.

2. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if
the buyer pays on June 8?
$720

$784

$792

$800

3. On June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the
goods. How much should the seller expect to receive if the buyer pays on June 8?
$692

$693

$700

$792

4. With credit terms of 2/10, n/30, the annual interest rate for paying in 10 days instead of 30 days is closest to
2%

24%

30%

36%

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a company's Bad Debts Expense for a given year is likely to be the same as its balance in Allowance for Doubtful Accounts.000 of its $500.000 Debit Of $28.S.000 of accounts receivable will be uncollectible.Accounts Receivable and Bad Debts Expense Quiz | AccountingCoach 5. A company estimates that $20. Debit Credit 9. its balance will be a __________ balance. When the terms of a sale are FOB __________. When the Allowance for Doubtful Accounts appears on a company's financial statements. Secured Unsecured 13. Which method of reporting losses on accounts receivable is to be used for financial reporting? Allowance Direct Write-off 12.000 http://www. The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB Destination Shipping Point 7. Which method of reporting losses on accounts receivable is required in the U. The adjusting entry will include a __________ to the Allowance for Doubtful Accounts. After several years of operations. The seller of goods that is offering credit terms of net 30 days will likely be one of its customer's __________ creditors until it receives payment.000. for income tax purposes? Allowance Direct Write-off 11.000 Credit Of $28.com/accounts-receivable-and-bad-debts-expense/quiz[4/29/2015 3:47:44 PM] . 6. True False 14.000 Credit Of $12. ownership of goods will transfer to the customer at the customer's dock. Debit Of $12. The buyer is responsible for the costs of shipping when goods are sold with the terms FOB Destination Shipping Point 8. Its Allowance for Doubtful Accounts presently has a credit balance of $8. On which financial statement would you expect to find Allowance for Doubtful Accounts? Balance Sheet Income Statement 10.accountingcoach.

000 of its $500.Accounts Receivable and Bad Debts Expense Quiz | AccountingCoach 15. The balance in Allowance for Doubtful Accounts at the end of the first week will likely be $ __________.000 Credit Of $17. The company's credit sales for its first week of operations are $500. Debit Of $3.800 when writing off the account? http://www. The company's bad debts expense for its first week of operations will be $ __________.000 Credit Of $23.000 of accounts receivable will be uncollectible.000.001 of its credit sales will be uncollectible.000 Debit Of $38. The company's bad debts expense for its second week of operations will be $ __________. A company estimates that $20. Debit Of $2. The amount of accounts receivable that you expect will be written off by the end of the company's second week of operations is $ __________. Its Allowance for Doubtful Accounts presently has a credit balance of $18. Which account should be debited for $1.000 Credit Of $38.800 is worthless and needs to be written off.000 of accounts receivable will be uncollectible. 22.accountingcoach. 17.000 of its $500.000 Debit Of $23. 21.000. The adjusting entry will include a __________ to Bad Debts Expense. It believes that 0. The credit sales for its second week are $600.000 Debit Of $17. Its Allowance for Doubtful Accounts presently has a debit balance of $3. 19.000.com/accounts-receivable-and-bad-debts-expense/quiz[4/29/2015 3:47:44 PM] . It learns that one of its accounts receivable amounting to $1.000 Credit Of $3. The adjusting entry will include a __________ to Allowance for Doubtful Accounts.000 Use the following information for questions 17-21: A company is expecting thousands of credit sales transactions each week with terms of net 30 days. Use the following information for questions 22-25: A company's Allowance for Doubtful Accounts has a credit balance of $25. A company estimates that $20. 18. The balance in Allowance for Doubtful Accounts at the end of the second week of operations will likely be $__________.000 Credit Of $2. The company uses the allowance method and it prepares weekly financial statements.000. 20.000 16.000.

27.accountingcoach. The receivable turnover ratio is computed by dividing the net credit __________ for the year by the average amount of accounts receivable during the year. the supplier receives full payment from the customer. 1-30 days past due. Which account will not be involved in the accounting entries made at the time when the payment is received? Allowance For Doubtful Accounts Accounts Receivable Bad Debts Expense 25. Studies show that exam questions are a great way to learn and retain important information. and 31-60 days past due is known as the __________ of accounts receivables. Which account should be credited for $1. 29. Free Cheat Sheet Receive our free 23-page Accounting Cheat Sheet (PDF). In some industries. Under the direct write off method. The days' sales in accounts receivable is calculated by dividing __________ days by the receivables turnover ratio during the year. Gain access to our 1. which account is debited when a company writes off one of its accounts receivable? Allowance For Doubtful Accounts Accounts Receivable Bad Debts Expense 26. companies often sell their accounts receivable to a firm known as a __________. Assuming that after the account is written off. http://www.com/accounts-receivable-and-bad-debts-expense/quiz[4/29/2015 3:47:44 PM] . 30.700 accounting exam questions (and answers) when you upgrade to PRO.800 when writing off the account? Allowance For Doubtful Accounts Accounts Receivable Bad Debts Expense 24. 28. A company's accounts receivable minus its allowance for doubtful accounts equals the net __________ value of the accounts receivable. stay up to date with the latest accounting questions answered. Sorting a company's accounts receivable into classifications such as current.Accounts Receivable and Bad Debts Expense Quiz | AccountingCoach Allowance For Doubtful Accounts Accounts Receivable Bad Debts Expense 23. Plus.

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Accounts Receivable and Bad Debts Expense Quiz | AccountingCoach About the Author After working as an accountant. His goal was to share his knowledge and passion for teaching accounting with people throughout the world at a very low cost.accountingcoach. consultant. CMA and Other Certifications. Degrees. CPA Requirements.. and university accounting instructor for more than 25 years. Read More. Resources About us About us Legal Legal http://www. Harold Averkamp formed AccountingCoach in 2003..com/accounts-receivable-and-bad-debts-expense/quiz[4/29/2015 3:47:44 PM] . Jobs & Opportunities. Learn About a Career in Accounting Career Home. CPA Exam.

com/accounts-receivable-and-bad-debts-expense/quiz[4/29/2015 3:47:44 PM] .2015 AccountingCoach. AccountingCoach® is a registered trademark.accountingcoach. LLC. http://www. All rights reserved.Accounts Receivable and Bad Debts Expense Quiz | AccountingCoach Copyright © 2004 .