1. Which of the following should be recorded in Accounts Receivable?

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a. Receivables from officers representing employee loans
b. Receivables from subsidiaries
 
c. Dividends receivable
d. None of these

 
2. When the allowance method of recognizing bad debts expense is used, the entry to record the
write-off of a specific uncollectible account would decrease
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a. the allowance for doubtful accounts.
 
b. the profit for the period.
c. the net realizable value of accounts receivable.
d. the working capital.

 
3. Information from the records of Starfall Co. is shown below:
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a. 132,000 154,000
b. 123,000 154,000
 
c. 143,000 162,000
d. 123,000 145,000

 
4. On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling
price of ₱3,000. The goods were shipped by ABC on December 31, 20x1 and were received by the
buyer on January 2, 20x2. The related shipping costs amounted to ₱20. ABC Co. collected the
receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much
net cash is collected on January 5, 20x2?
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a. 3,020
 
b. 3,000
c. 2,980
d. 0

 
5. Soap Co. has the following information on December 31, 20x1 before any year-end adjustments.
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a. 498,370
 
b. 502,630
c. 486,780
d. 478,970

 
6. Washing Co. has the following information on December 31, 20x1 before any year-end
adjustments.
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a. 4,250
b. 4,300
 
c. 4,550
d. 10,300

 
7. Fabric Co. sells to wholesalers on terms of 2/15, net 30. An analysis of Fabric Co.’s trade
receivable balances on December 31, 20x1, revealed the following:
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a. 15,600
 
b. 9,000
c. 22,600
d. 28,200

Use the following information for the next two questions: ABC Co. has the following information on
December 31, 20x1 before any year-end adjustments.
 
8. How much is the balance of the allowance for doubtful accounts on January 1, 20x1?
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a. 12,600
b. 18,900
 
c. 19,200
d. 23,400

 
9. How much is the adjusted bad debt expense to be reported in the year-end financial statements?
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a. 123,300
b. 128,700
c. 143,300
d. 132,300
 
 
10. ABC Co. has the following information before any year-end adjustment.
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a. 13,800
b. 26,800
c. 49,800
 
d. 52,800