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ACCT 2000 EXAM 2 LSU TERMS 2025/
2026 BRAND NEW OFFICIAL
QUESTIONS WITH ANSWERS.
The _________ method of accounting for bad debts records
the loss from an uncollectible account receivable when it is
determined to be uncollectible. No attempt is made to predict
bad debts expense.
direct write-off
On August 1, Harris Co. determines that it cannot collect
$200 from its customer, L. Dash. Harris Co. uses the direct
write-off method, so they will record the write-off of this
account by debiting:
bad debt expense
The direct write-off method records bad debts expense only
when a specific account becomes uncollectible, which is not
always in the same period as the sale. For this reason, the
direct write-off method violates the _________ principle.
expense recognition
The (allowance/direct write-off) ________________ method of
accounting for bad debts records estimated bad debts
expense in the period when the related sales are recorded.
allowance
A company has $150,000 of credit sales during the year and
estimates that $1,000 of its accounts receivable will be
uncollectible. The adjusting entry will include a credit to:
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allowance for doubtful accounts
The allowance for doubtful accounts is a contra asset
account that equals:
total uncollectible accounts
The expected proceeds from accounts receivable,
determined by taking accounts receivable less the allowance
for doubtful accounts, is called:
realizable value
The direct write-off method of accounting for bad debts
matches the estimated loss from uncollectible accounts
receivable against the sales they helped produce.
false
When an account previously written off is later collected, two
journal entries are required. The first journal entry is to
______ the account, and the second journal entry is to record
______ of payment.
reinstate/receipt
The allowance for doubtful accounts is a(n)
(current/contra/opposite) _______________ asset account
and has a normal credit balance.
contra
Zino Company determines that a customer balance of
$200,from Hollis Co. is uncollectible. Zino uses the allowance
method to account for bad debts. The entry to write off the
uncollectible balance will include a:
debit to Allowance for Doubtful Accounts and a credit to Accounts
Receivable.
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Conroy Company uses the allowance method to account for
bad debts. During the year, Conroy determined that a
balance of $200 from Alegia Co. was uncollectible and wrote
the balance off. What is the total decrease to net income
related to this entry?
$0
Finish Co. uses the allowance method to account for bad
debts. At the end of the year, Finish Co.'s unadjusted trial
balance shows an accounts receivable balance of $30,000;
allowance for doubtful accounts balance of $200 (credit); and
sales of $600,000. Based on history, Finish estimates that
bad debts will be 1% of sales. The entry to record estimated
bad debts will include a debit to Bad Debts Expense in the
amount of:
$6000
Leo Co. uses the allowance method to account for bad debts.
At the end of the year, Leo Co.'s accounts receivable balance
is $25,000; allowance for doubtful accounts balance of $100
(credit); and sales of $500,000. Based on history, Leo
estimates that bad debts will be 2% of accounts receivable.
The entry to record estimated bad debts will include a debit
to Bad Debts Expense in the amount of:
$400
At period end, Bradon Company estimates that $1,200 of its
accounts receivable balance is uncollectible. Bradon uses
the allowance method to account for bad debts. The entry to
record this adjusting entry would include a (debit/credit)
_____________ to Allowance for Doubtful Accounts.
credit
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The __ method of estimating bad debts uses both past and
current receivables information to estimate the allowance
amount. Specifically, each receivable is classified by how
long it is past its due date.
aging of receivables
The ______ method, also referred to as balance sheet
method, uses balance sheet relations to estimate bad
debts—mainly, the relationship between accounts receivable
and the allowance account.
aging of accounts receivable
Yates Co. uses the allowance method to account for bad
debts. At the end of the period, Yate's unadjusted trial
balance shows an accounts receivable balance of $10,000;
allowance for doubtful accounts balance of $400 (credit); and
sales of $500,000. Based on history, Yates estimates that bad
debts will be 1% of sales. The entry to record estimated bad
debts will include a debit to bad debts expense in the amount
of:
$5000
Ana Co. uses the allowance method to account for bad
debts. At the end of the period, Ana's unadjusted trial
balance shows an accounts receivable balance of $40,000;
allowance for doubtful accounts balance of $300 (credit); and
sales of $500,000. Based on history, Ana estimates that bad
debts will be 2% of accounts receivable. The entry to record
estimated bad debts will include a debit to bad debts
expense in the amount of:
$500
ACCT 2000 EXAM 2 LSU TERMS 2025/
2026 BRAND NEW OFFICIAL
QUESTIONS WITH ANSWERS.
The _________ method of accounting for bad debts records
the loss from an uncollectible account receivable when it is
determined to be uncollectible. No attempt is made to predict
bad debts expense.
direct write-off
On August 1, Harris Co. determines that it cannot collect
$200 from its customer, L. Dash. Harris Co. uses the direct
write-off method, so they will record the write-off of this
account by debiting:
bad debt expense
The direct write-off method records bad debts expense only
when a specific account becomes uncollectible, which is not
always in the same period as the sale. For this reason, the
direct write-off method violates the _________ principle.
expense recognition
The (allowance/direct write-off) ________________ method of
accounting for bad debts records estimated bad debts
expense in the period when the related sales are recorded.
allowance
A company has $150,000 of credit sales during the year and
estimates that $1,000 of its accounts receivable will be
uncollectible. The adjusting entry will include a credit to:
, Page | 2
allowance for doubtful accounts
The allowance for doubtful accounts is a contra asset
account that equals:
total uncollectible accounts
The expected proceeds from accounts receivable,
determined by taking accounts receivable less the allowance
for doubtful accounts, is called:
realizable value
The direct write-off method of accounting for bad debts
matches the estimated loss from uncollectible accounts
receivable against the sales they helped produce.
false
When an account previously written off is later collected, two
journal entries are required. The first journal entry is to
______ the account, and the second journal entry is to record
______ of payment.
reinstate/receipt
The allowance for doubtful accounts is a(n)
(current/contra/opposite) _______________ asset account
and has a normal credit balance.
contra
Zino Company determines that a customer balance of
$200,from Hollis Co. is uncollectible. Zino uses the allowance
method to account for bad debts. The entry to write off the
uncollectible balance will include a:
debit to Allowance for Doubtful Accounts and a credit to Accounts
Receivable.
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Conroy Company uses the allowance method to account for
bad debts. During the year, Conroy determined that a
balance of $200 from Alegia Co. was uncollectible and wrote
the balance off. What is the total decrease to net income
related to this entry?
$0
Finish Co. uses the allowance method to account for bad
debts. At the end of the year, Finish Co.'s unadjusted trial
balance shows an accounts receivable balance of $30,000;
allowance for doubtful accounts balance of $200 (credit); and
sales of $600,000. Based on history, Finish estimates that
bad debts will be 1% of sales. The entry to record estimated
bad debts will include a debit to Bad Debts Expense in the
amount of:
$6000
Leo Co. uses the allowance method to account for bad debts.
At the end of the year, Leo Co.'s accounts receivable balance
is $25,000; allowance for doubtful accounts balance of $100
(credit); and sales of $500,000. Based on history, Leo
estimates that bad debts will be 2% of accounts receivable.
The entry to record estimated bad debts will include a debit
to Bad Debts Expense in the amount of:
$400
At period end, Bradon Company estimates that $1,200 of its
accounts receivable balance is uncollectible. Bradon uses
the allowance method to account for bad debts. The entry to
record this adjusting entry would include a (debit/credit)
_____________ to Allowance for Doubtful Accounts.
credit
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The __ method of estimating bad debts uses both past and
current receivables information to estimate the allowance
amount. Specifically, each receivable is classified by how
long it is past its due date.
aging of receivables
The ______ method, also referred to as balance sheet
method, uses balance sheet relations to estimate bad
debts—mainly, the relationship between accounts receivable
and the allowance account.
aging of accounts receivable
Yates Co. uses the allowance method to account for bad
debts. At the end of the period, Yate's unadjusted trial
balance shows an accounts receivable balance of $10,000;
allowance for doubtful accounts balance of $400 (credit); and
sales of $500,000. Based on history, Yates estimates that bad
debts will be 1% of sales. The entry to record estimated bad
debts will include a debit to bad debts expense in the amount
of:
$5000
Ana Co. uses the allowance method to account for bad
debts. At the end of the period, Ana's unadjusted trial
balance shows an accounts receivable balance of $40,000;
allowance for doubtful accounts balance of $300 (credit); and
sales of $500,000. Based on history, Ana estimates that bad
debts will be 2% of accounts receivable. The entry to record
estimated bad debts will include a debit to bad debts
expense in the amount of:
$500
