Question 1

The adjusting entry for uncollectible accounts requires a debit to

Accepted Answer

A)   Allowance for Doubtful Accounts and a credit to Accounts Receivable.
B)   Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.
C)   Uncollectible Accounts Expense and a credit to Accounts Receivable.
D)   Allowance for Doubtful Accounts and a credit to Uncollectible Accounts Expense.E) B) and C)
F) A) and D)

Question 2

On July 31,2016,after one month of operation,the general ledger of Dakota Consulting contained the following accounts and balances.The firm adjusts losses from uncollectible accounts only at the end of the fiscal year.Monthly adjustments are listed below.Prepare the Trial Balance,Adjustments,and Adjusted Trial Balance sections of a worksheet.

Accepted Answer

The answer of On July 31,2016,after one month of operation,the...

Question 3

If a company uses the periodic inventory system,purchases of merchandise are

Accepted Answer

A)   debited to Merchandise Inventory.
B)   credited to Merchandise Inventory.
C)   debited to Purchases.
D)   credited to Sales.E) A) and B)
F) A) and C)

Question 4

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During the year,the firm had net credit sales of $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible ...

Question 5

To remove the beginning inventory from the books,the Income Summary account is credited for the amount of the beginning inventory.

Accepted Answer

A) True 
 B)False

Question 6

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

Accepted Answer

A)   $900.
B)   $300.
C)   $1,800.
D)   $1,200.E) B) and D)
F) B) and C) A

Question 7

When the accrual basis of accounting is used,expenses are recognized only in the period during which they are paid.

Accepted Answer

A) True 
 B)False

Question 8

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 9

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Accepted Answer

Debit Insurance Expense,$700;credit Prepaid Insurance,$700

Question 10

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

Accepted Answer

Debit Wages Expense,...

Question 11

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

Accepted Answer

debit

Question 12

Accrued expenses are

Accepted Answer

A)   paid for in one period but not fully used until a later period.
B)   used in one period but not paid for until a later period.
C)   paid for,recorded,and used in one period.
D)   budgeted but not paid for or used during the period.E) B) and C)
F) None of the above

Question 13

Under the accrual basis of accounting,the expense for uncollectible accounts is estimated and recorded before specific accounts are actually written off.

Accepted Answer

A) True 
 B)False

Question 14

The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two

Accepted Answer

A)   only the Income Statement columns.
B)   Income Statement or Balance Sheet columns.
C)   Balance Sheet and Income Statement Debit columns.
D)   Balance Sheet and Income Statement Credit columns.E) B) and C)
F) None of the above

Question 15

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Accepted Answer

A) True 
 B)False

Question 16

When an adjusting entry is made for supplies used,the Supplies Expense account is increased and the ____________________ account is decreased.

Accepted Answer

The answer of When an adjusting entry is made for...

Question 17

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is

Accepted Answer

A)   $960.00.
B)   $80.00.
C)   $240.00.
D)   No accrual is necessary.E) B) and C)
F) A) and D)

Question 18

On Oct 1,2016,a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance.The adjustment needed on December 31,2016,to report the amount of insurance that had expired,would be:

Accepted Answer

A)   a debit to Prepaid Insurance for $600 and a credit to Insurance Expense for $600.
B)   a debit to Insurance Expense for $600 and a credit to Prepaid Insurance for $600.
C)   a debit to Insurance Expense for $2,400 and a credit to Cash for $2,400.
D)   a debit to Insurance Expense for $1,800 and a credit to Prepaid Insurance for $1,800.E) All of the above
F) C) and D)

Question 19

Design Home Furnishings is a retail store.On December 31,2016,the firm's general ledger contained the following accounts and balances.Adjustments are shown below.Prepare the Trial Balance section,record the adjustments in the Adjustments section,and complete the worksheet for the year ended December 31,2016.Round to the nearest whole dollar.

Accepted Answer

The answer of Design Home Furnishings is a retail store.On...

Question 20

The adjusting entry to record accrued interest on a note payable requires a debit to

Accepted Answer

A)   Interest Income and a credit to Notes Payable.
B)   Interest Payable and a credit to Interest Expense.
C)   Interest Expense and a credit to Cash.
D)   Interest Expense and a credit to Interest Payable.E) None of the above
F) B) and C)

Exam 12: Accruals, Deferrals, and the Worksheet

The adjusting entry for uncollectible accounts requires a debit to

Correct Answer
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Correct Answer
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If a company uses the periodic inventory system,purchases of merchandise are

Correct Answer
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Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During the year,the firm had net credit sales of $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Correct Answer
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Debit Uncollectible ...
View Answer

To remove the beginning inventory from the books,the Income Summary account is credited for the amount of the beginning inventory.

Correct Answer
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Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

Correct Answer
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A

When the accrual basis of accounting is used,expenses are recognized only in the period during which they are paid.

Correct Answer
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The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Correct Answer
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Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Correct Answer
verified
Debit Insurance Expense,$700;credit Prepaid Insurance,$700

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

Correct Answer
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Debit Wages Expense,...
View Answer

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

Correct Answer
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debit

Accrued expenses are

Correct Answer
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Under the accrual basis of accounting,the expense for uncollectible accounts is estimated and recorded before specific accounts are actually written off.

Correct Answer
verified

The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two

Correct Answer
verified

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Correct Answer
verified

When an adjusting entry is made for supplies used,the Supplies Expense account is increased and the ____________________ account is decreased.

Correct Answer
verified

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is

Correct Answer
verified

On Oct 1,2016,a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance.The adjustment needed on December 31,2016,to report the amount of insurance that had expired,would be:

Correct Answer
verified

Correct Answer
verified

The adjusting entry to record accrued interest on a note payable requires a debit to

Correct Answer
verified

Exam 12: Accruals, Deferrals, and the Worksheet

The adjusting entry for uncollectible accounts requires a debit to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a company uses the periodic inventory system,purchases of merchandise are

Correct AnswerverifiedShow Answer

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During the year,the firm had net credit sales of $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Correct AnswerverifiedDebit Uncollectible ...View AnswerShow Answer

To remove the beginning inventory from the books,the Income Summary account is credited for the amount of the beginning inventory.

Correct AnswerverifiedShow Answer

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

Correct AnswerverifiedA

When the accrual basis of accounting is used,expenses are recognized only in the period during which they are paid.

Correct AnswerverifiedShow Answer

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Correct AnswerverifiedShow Answer

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Correct AnswerverifiedDebit Insurance Expense,$700;credit Prepaid Insurance,$700

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

Correct AnswerverifiedDebit Wages Expense,...View AnswerShow Answer

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

Correct Answerverifieddebit

Accrued expenses are

Correct AnswerverifiedShow Answer

Under the accrual basis of accounting,the expense for uncollectible accounts is estimated and recorded before specific accounts are actually written off.

Correct AnswerverifiedShow Answer

The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two

Correct AnswerverifiedShow Answer

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Correct AnswerverifiedShow Answer

When an adjusting entry is made for supplies used,the Supplies Expense account is increased and the ____________________ account is decreased.

Correct AnswerverifiedShow Answer

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is

Correct AnswerverifiedShow Answer

On Oct 1,2016,a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance.The adjustment needed on December 31,2016,to report the amount of insurance that had expired,would be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The adjusting entry to record accrued interest on a note payable requires a debit to

Correct AnswerverifiedShow Answer

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Debit Uncollectible ...
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A

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Debit Insurance Expense,$700;credit Prepaid Insurance,$700

Correct Answer
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Debit Wages Expense,...
View Answer

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debit

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