ACTG 244 TEST 3 STUDY GUIDE PART 1 QUESTIONS WITH
VERIFIED ANSWERS
In 2020 a customer had paid $ 1,500 in advance for a special job - grading his yard and
planting grass. That service was performed in 2021.
The journal entry to record the completion of this service in 2021 will: - Answers - Debit
Unearned revenue payable for $1,500
Credit Service revenue for $1,500
The company billed customers for monthly services totaling $ 235,000.
The journal entry to record the completion of these services in 2021 will: - Answers -
Debit Accounts receivable for $235,000
Credit Service revenue for $235,000
Customers paying within 15 days are given a 2% discount. A total of $ 237,000 was
collected from customers after deducting discounts of $ 2,500.
The journal entry to record this event in 2021 will: - Answers - Debit Cash for $ 237,000
Debit Sales discounts for $2,500
Credit Accounts receivable for $239,500
After collection efforts proved unsuccessful, a customer account was written-off in the
amount of $ 1,700.
The journal entry to record the write-off in 2021 will:
Debit [ Select ] ["Accounts receivable", "Uncollectible accounts expense", "Allowance for
uncollectible accounts"] for $1,700
Credit [ Select ] ["Accounts receivable", "Uncollectible accounts expense", "Allowance
for uncollectible accounts"] for $1,700 - Answers - Debit Allowance for uncollectible
accounts for $1,700
Credit Accounts receivable for $1,700
The monthly bank reconciliation revealed the following information:
, $ 100 Customer paid by direct deposit. (This customer owed us this amount for services
performed in December of 2020)
The journal entry to record this event in 2021 will:
Debit [ Select ] ["Allowance for uncollectible accounts", "Accounts receivable",
"Unearned revenue payable", "Cash"] for $100
Credit [ Select ] ["Accounts receivable", "Allowance for uncollectible accounts", "Service
revenue", "Unearned revenue payable"] for $100 - Answers - Debit Cash for $100
Credit Accounts receivable for $100
The monthly bank reconciliation revealed the following information:
$ 1,800 Customer check returned for non-sufficient funds. (there was no bank charge)
The journal entry to record this event in 2021 will:
Debit [ Select ] ["Allowance for uncollectible accounts", "Cash", "Uncollectible accounts
expense", "Accounts receivable"] for $1,800
Credit [ Select ] ["Uncollectible accounts expense", "Allowance for uncollectible
accounts", "Cash", "Accounts receivable"] for $1,800 - Answers - Debit Accounts
receivable for $1,800
Credit Cash for $1,800
Supplies in the amount of $ 32,000 were purchased on account.
The journal entry to record this event in 2021 will: - Answers - Debit Supplies for
$32,000
Credit Accounts payable for $32,000
The company paid the balance due on the supplies within 10 days to take advantage of
a 2% discount.
The journal entry to record the payment in 2021 will:
Debit [ Select ] ["Accounts payable", "Supplies expense", "Supplies", "Cash"] for
$32,000
Credit [ Select ] ["Sales discounts", "Supplies expense", "Supplies"] for $640 and
Credit Cash for $ 31,360 - Answers - Debit Accounts payable for $32,000
Credit Supplies for $640 and
VERIFIED ANSWERS
In 2020 a customer had paid $ 1,500 in advance for a special job - grading his yard and
planting grass. That service was performed in 2021.
The journal entry to record the completion of this service in 2021 will: - Answers - Debit
Unearned revenue payable for $1,500
Credit Service revenue for $1,500
The company billed customers for monthly services totaling $ 235,000.
The journal entry to record the completion of these services in 2021 will: - Answers -
Debit Accounts receivable for $235,000
Credit Service revenue for $235,000
Customers paying within 15 days are given a 2% discount. A total of $ 237,000 was
collected from customers after deducting discounts of $ 2,500.
The journal entry to record this event in 2021 will: - Answers - Debit Cash for $ 237,000
Debit Sales discounts for $2,500
Credit Accounts receivable for $239,500
After collection efforts proved unsuccessful, a customer account was written-off in the
amount of $ 1,700.
The journal entry to record the write-off in 2021 will:
Debit [ Select ] ["Accounts receivable", "Uncollectible accounts expense", "Allowance for
uncollectible accounts"] for $1,700
Credit [ Select ] ["Accounts receivable", "Uncollectible accounts expense", "Allowance
for uncollectible accounts"] for $1,700 - Answers - Debit Allowance for uncollectible
accounts for $1,700
Credit Accounts receivable for $1,700
The monthly bank reconciliation revealed the following information:
, $ 100 Customer paid by direct deposit. (This customer owed us this amount for services
performed in December of 2020)
The journal entry to record this event in 2021 will:
Debit [ Select ] ["Allowance for uncollectible accounts", "Accounts receivable",
"Unearned revenue payable", "Cash"] for $100
Credit [ Select ] ["Accounts receivable", "Allowance for uncollectible accounts", "Service
revenue", "Unearned revenue payable"] for $100 - Answers - Debit Cash for $100
Credit Accounts receivable for $100
The monthly bank reconciliation revealed the following information:
$ 1,800 Customer check returned for non-sufficient funds. (there was no bank charge)
The journal entry to record this event in 2021 will:
Debit [ Select ] ["Allowance for uncollectible accounts", "Cash", "Uncollectible accounts
expense", "Accounts receivable"] for $1,800
Credit [ Select ] ["Uncollectible accounts expense", "Allowance for uncollectible
accounts", "Cash", "Accounts receivable"] for $1,800 - Answers - Debit Accounts
receivable for $1,800
Credit Cash for $1,800
Supplies in the amount of $ 32,000 were purchased on account.
The journal entry to record this event in 2021 will: - Answers - Debit Supplies for
$32,000
Credit Accounts payable for $32,000
The company paid the balance due on the supplies within 10 days to take advantage of
a 2% discount.
The journal entry to record the payment in 2021 will:
Debit [ Select ] ["Accounts payable", "Supplies expense", "Supplies", "Cash"] for
$32,000
Credit [ Select ] ["Sales discounts", "Supplies expense", "Supplies"] for $640 and
Credit Cash for $ 31,360 - Answers - Debit Accounts payable for $32,000
Credit Supplies for $640 and
