CSUF ACCT 201A FINAL EXAM QUESTIONS
AND ANSWERS 2026
◉ A sales discount is recorded by the seller as a(n):
Expense.
Contra asset.
Contra revenue.
Liability. Answer: contra
◉ On January 18, a company provides services to a customer for
$500 and offers the customer terms 2/10, n/30. Which of the
following would be recorded when the customer remits payment on
January 25?
Debit Cash for $500.
Credit Accounts Receivable for $490.
Credit Service Revenue for $500.
Debit Sales Discount for $10. Answer: Debit Sales Discount for $10.
◉ Which of the following refers to the seller reducing the customer's
balance owed because of some deficiency in the company's product
or service?
Sales Allowance.
,Sales Discount.
Trade Discount.
Allowance for Uncollectible Accounts. Answer: Sales Allowance.
◉ Use the information below to calculate net revenues.
Service Revenue$100,000 Sales Discounts$2,000 Accounts
Receivable$15,000 Sales Allowances$7,000 Cash$18,000
$91,000.
$85,000.
$68,000.
$98,000. Answer: $91,000. (Don't include cash or account receivable
both assets)
◉ On August 4, Sanders provides services to Frederickson for
$5,000, terms 3/10, n/30. Frederickson pays for the services on
August 12. What amount would Sanders record as revenue on
August 4?
$4,850.
$5,000.
$5,150.
$5,300. Answer: $5,000.
,◉ On August 4, Sanders provides services to Frederickson for
$5,000, terms 3/10, n/30. Frederickson pays for the services on
August 12. What is the amount of net revenues (total revenue minus
sales discounts) as of August 12?
$4,850.
$5,000.
$5,150.
$5,300. Answer: $4,850.
◉ The entry to record the estimate for uncollectible accounts
includes:
A debit to Allowance for Uncollectible Accounts.
A credit to Accounts Receivable.
A debit to Sales Revenue.
A debit to Bad Debt Expense. Answer: A debit to Bad Debt Expense.
◉ Under the allowance method for uncollectible accounts, the
balance of Allowance for Uncollectible Accounts increases when:
Future bad debts are estimated.
Bad debts actually occur.
Cash is received from customers.
Never. Answer: Future bad debts are estimated.
, ◉ Schmidt Company's Accounts Receivable balance is $100,000, its
adjusted balance in Allowance for Uncollectible Accounts is $4,000,
and its bad debt expense is $3,800. The net amount of accounts
receivable is:
$96,000.
$96,200.
$100,000.
$104,000. Answer: $96,000.
◉ At the end of its first year of operations, a company establishes an
allowance for future uncollectible accounts for $5,600. At what
amount would bad debt expense be reported in the current year's
income statement?
$800.
$4,800.
$5,600.
$6,400. Answer: $5,600.
◉ If a company uses the allowance method of accounting for
uncollectible accounts and writes off a specific account:
Net accounts receivable increase.
Net accounts receivable decrease.
Net accounts receivable do not change.
AND ANSWERS 2026
◉ A sales discount is recorded by the seller as a(n):
Expense.
Contra asset.
Contra revenue.
Liability. Answer: contra
◉ On January 18, a company provides services to a customer for
$500 and offers the customer terms 2/10, n/30. Which of the
following would be recorded when the customer remits payment on
January 25?
Debit Cash for $500.
Credit Accounts Receivable for $490.
Credit Service Revenue for $500.
Debit Sales Discount for $10. Answer: Debit Sales Discount for $10.
◉ Which of the following refers to the seller reducing the customer's
balance owed because of some deficiency in the company's product
or service?
Sales Allowance.
,Sales Discount.
Trade Discount.
Allowance for Uncollectible Accounts. Answer: Sales Allowance.
◉ Use the information below to calculate net revenues.
Service Revenue$100,000 Sales Discounts$2,000 Accounts
Receivable$15,000 Sales Allowances$7,000 Cash$18,000
$91,000.
$85,000.
$68,000.
$98,000. Answer: $91,000. (Don't include cash or account receivable
both assets)
◉ On August 4, Sanders provides services to Frederickson for
$5,000, terms 3/10, n/30. Frederickson pays for the services on
August 12. What amount would Sanders record as revenue on
August 4?
$4,850.
$5,000.
$5,150.
$5,300. Answer: $5,000.
,◉ On August 4, Sanders provides services to Frederickson for
$5,000, terms 3/10, n/30. Frederickson pays for the services on
August 12. What is the amount of net revenues (total revenue minus
sales discounts) as of August 12?
$4,850.
$5,000.
$5,150.
$5,300. Answer: $4,850.
◉ The entry to record the estimate for uncollectible accounts
includes:
A debit to Allowance for Uncollectible Accounts.
A credit to Accounts Receivable.
A debit to Sales Revenue.
A debit to Bad Debt Expense. Answer: A debit to Bad Debt Expense.
◉ Under the allowance method for uncollectible accounts, the
balance of Allowance for Uncollectible Accounts increases when:
Future bad debts are estimated.
Bad debts actually occur.
Cash is received from customers.
Never. Answer: Future bad debts are estimated.
, ◉ Schmidt Company's Accounts Receivable balance is $100,000, its
adjusted balance in Allowance for Uncollectible Accounts is $4,000,
and its bad debt expense is $3,800. The net amount of accounts
receivable is:
$96,000.
$96,200.
$100,000.
$104,000. Answer: $96,000.
◉ At the end of its first year of operations, a company establishes an
allowance for future uncollectible accounts for $5,600. At what
amount would bad debt expense be reported in the current year's
income statement?
$800.
$4,800.
$5,600.
$6,400. Answer: $5,600.
◉ If a company uses the allowance method of accounting for
uncollectible accounts and writes off a specific account:
Net accounts receivable increase.
Net accounts receivable decrease.
Net accounts receivable do not change.
