ACCY 201 EXAM 2 2026 ADJUSTING ENTRIES AND CLOSING PROCESS REVIEW QUESTIONS ANSWERS VERIFIED GUIDE

ACCY 201 FINAL EXAM BARTON 2026 DEBITS
AND CREDITS REVIEW QUESTIONS ANSWERS
VERIFIED GUIDE

◉ allowance method.
Answer: records bad debt expense by estimating uncollectible
accounts at the end of the accounting period(used with large
amount of receivables)


◉ write off using allowance method.
Answer: allowance for doubtful accounts xxxx
accounts receivable xxxx


◉ reinstate an account after it has been written-off?.
Answer: accounts receivable xxxx
allowance for doubtful accounts xxxx


cash xxxx
accounts receivable xxxx


◉ Allowance for Doubtful Accounts
What kind of account is it?.

,Answer: -is credited for the estimated bad debts
-contra asset account


◉ net realizable value.
Answer: -the amount that is expected to be collected or
realized


◉ What is the estimate of uncollectible accounts based on? 3 things
..
Answer: -futre forecasts
-past experience
-industry averages


◉ Two methods to estimate uncollectible accounts..
Answer: -precent of sales method
-analysis of receivables method


◉ How to get bad debt expense using the percentage of sales
method?.
Answer: credit sales
x bad debt as a percentage of credit sales

, ◉ analysis of receivables method.
Answer: based on the assumption that the longer an account
receivable is outstanding, the less likely that it will be collected


◉ How to determine interest?.
Answer: face amount
x interest rate
x term / 360


◉ What is maturity value?.
Answer: amount that must be paid at the due date of the note


◉ How to find the maturity value?.
Answer: face amount (+) interest


◉ Journal entry for recording issuance and maturity of a note..
Answer: Notes receivable xxxx
Accounts receivable xxxx


Interest receivable xxxx
Interest revenue xxxx