©EVERLY 2025 ALL RIGHTS RESERVED.
Miami University Exam 2 - ACC 221 Exam
Questions And Answers 100% Pass.
A service charge from the bank affects which side of the bank reconciliation? -
Answer✔Company
A NSF Check from the bank affects which side of the bank reconciliation? - Answer✔Company
The company records a deposit for the sale of services for $63 as $36. $63 was correctly
deposited in the bank, but the company recorded $36. What is the entry to the General Journal? -
Answer✔Debit - Cash $27
Credit - Sales Revenue
The company records a deposit for the sale of services for $18 as $81. $18 was correctly
deposited in the bank, but the company recorded $81. What is the entry to the General Journal? -
Answer✔Debit - Sales Revenue $63
Credit - Cash $63
A check for advertising for $50 was misreported as $100 by the company. What entry in the
general journal fixes this? - Answer✔Debit- Cash $50
Credit - Advertising Expense - $50
A check for rent for $90 was misreported as $70 by the company. What entry in the general
journal fixes this? - Answer✔Debit - Rent Expense $20
Credit - Cash $20
Checks Outstanding. Bank or Company side of Reconciliation? - Answer✔Bank
Deposits Outstanding. Bank or Company side of Reconciliation? - Answer✔Bank
Use of Debit Card or Electronic Check. Bank or Company side of Reconciliation? -
Answer✔Company
Bank Collection of Note. Bank or Company side of Reconciliation? - Answer✔Company
Interest on Bank Account. Bank or Company side of Reconciliation? - Answer✔Company
What is the General Journal entry for a NSF Check of $500? - Answer✔Debit - Accounts
Receivable $500
1|Page
, ©EVERLY 2025 ALL RIGHTS RESERVED.
Credit - Cash $500
Error in recording deposit. Bank or Company side of Reconciliation? - Answer✔Company
Error in recording check. Bank or Company side of Reconciliation? - Answer✔Company
Bank deposits another persons check in company's account. Bank or Company side of
Reconciliation? - Answer✔Bank
What is the Direct Write Off Method? - Answer✔Recording bad debt expense at the time we
know the account to be uncollectible
What is the Allowance Method? - Answer✔Recording an estimate at the end of each period for
the possibility of future uncollectible accounts
Which Uncollectible method is approved by GAAP? - Answer✔Allowance Method
How do you write off uncollectible accounts using the Allowance Method? - Answer✔Debit -
Allowance for Uncollectible Accounts
Credit - Accounts Receivable
What is the impact of writing off an account using the Allowance Method? - Answer✔Decrease
in Accounts Receivable, Total Assets
Allowance for Uncollectible Accounts is a ____? - Answer✔Contra-Asset Account
The difference between the Allowance Method and the Direct Write Off Method is? -
Answer✔Time
Record a Journal Entry for an uncollectible account using the direct write off method? The
account is worth $1000 - Answer✔Debit - Bad Debt Expense $1000
Credit - Accounts Receivable $1000
Record the adjustment Journal Entry under the Allowance Method. We estimate $5000 will be
uncollectible in the next year - Answer✔Debit - Bad Debt Expense $5000
Credit - Allowance for Uncollectible Accounts $5000
What is the Percent Method of Uncollectible Accounts? - Answer✔The Uncollectible amount is
found by multiplying the Accounts Receivable amount by an estimated uncollectible percentage
What is a periodic system? - Answer✔Inventory is updated at the end of the period with an
adjusting entry. (This is the system we used in Chapter 6)
What is a perpetual system? - Answer✔Inventory balance is recorded at the time of purchase or
sale of inventory (this is what we have used prior to Chapter 6)
What is the adjusting entry using the Percent Method Allowance Method?
Accounts Receivable = 23,000
2|Page
Miami University Exam 2 - ACC 221 Exam
Questions And Answers 100% Pass.
A service charge from the bank affects which side of the bank reconciliation? -
Answer✔Company
A NSF Check from the bank affects which side of the bank reconciliation? - Answer✔Company
The company records a deposit for the sale of services for $63 as $36. $63 was correctly
deposited in the bank, but the company recorded $36. What is the entry to the General Journal? -
Answer✔Debit - Cash $27
Credit - Sales Revenue
The company records a deposit for the sale of services for $18 as $81. $18 was correctly
deposited in the bank, but the company recorded $81. What is the entry to the General Journal? -
Answer✔Debit - Sales Revenue $63
Credit - Cash $63
A check for advertising for $50 was misreported as $100 by the company. What entry in the
general journal fixes this? - Answer✔Debit- Cash $50
Credit - Advertising Expense - $50
A check for rent for $90 was misreported as $70 by the company. What entry in the general
journal fixes this? - Answer✔Debit - Rent Expense $20
Credit - Cash $20
Checks Outstanding. Bank or Company side of Reconciliation? - Answer✔Bank
Deposits Outstanding. Bank or Company side of Reconciliation? - Answer✔Bank
Use of Debit Card or Electronic Check. Bank or Company side of Reconciliation? -
Answer✔Company
Bank Collection of Note. Bank or Company side of Reconciliation? - Answer✔Company
Interest on Bank Account. Bank or Company side of Reconciliation? - Answer✔Company
What is the General Journal entry for a NSF Check of $500? - Answer✔Debit - Accounts
Receivable $500
1|Page
, ©EVERLY 2025 ALL RIGHTS RESERVED.
Credit - Cash $500
Error in recording deposit. Bank or Company side of Reconciliation? - Answer✔Company
Error in recording check. Bank or Company side of Reconciliation? - Answer✔Company
Bank deposits another persons check in company's account. Bank or Company side of
Reconciliation? - Answer✔Bank
What is the Direct Write Off Method? - Answer✔Recording bad debt expense at the time we
know the account to be uncollectible
What is the Allowance Method? - Answer✔Recording an estimate at the end of each period for
the possibility of future uncollectible accounts
Which Uncollectible method is approved by GAAP? - Answer✔Allowance Method
How do you write off uncollectible accounts using the Allowance Method? - Answer✔Debit -
Allowance for Uncollectible Accounts
Credit - Accounts Receivable
What is the impact of writing off an account using the Allowance Method? - Answer✔Decrease
in Accounts Receivable, Total Assets
Allowance for Uncollectible Accounts is a ____? - Answer✔Contra-Asset Account
The difference between the Allowance Method and the Direct Write Off Method is? -
Answer✔Time
Record a Journal Entry for an uncollectible account using the direct write off method? The
account is worth $1000 - Answer✔Debit - Bad Debt Expense $1000
Credit - Accounts Receivable $1000
Record the adjustment Journal Entry under the Allowance Method. We estimate $5000 will be
uncollectible in the next year - Answer✔Debit - Bad Debt Expense $5000
Credit - Allowance for Uncollectible Accounts $5000
What is the Percent Method of Uncollectible Accounts? - Answer✔The Uncollectible amount is
found by multiplying the Accounts Receivable amount by an estimated uncollectible percentage
What is a periodic system? - Answer✔Inventory is updated at the end of the period with an
adjusting entry. (This is the system we used in Chapter 6)
What is a perpetual system? - Answer✔Inventory balance is recorded at the time of purchase or
sale of inventory (this is what we have used prior to Chapter 6)
What is the adjusting entry using the Percent Method Allowance Method?
Accounts Receivable = 23,000
2|Page
