WileyPLUS Final Exam ACC 291 Verified Exam Questions and
Answers Latest update 2026/2027
Question:
An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If
Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for
the period will require a Debit to bad Debt expense for $3,300. Debit to Bad Debt Expense for $4,500.
Credit to Allowance for Doubtful Accounts for $4,500. Debit to Allowance for Doubtful Accounts for
$3,300.
Answer:
Debit to Allowance for Doubtful Accounts for $3,300.
Question:
The financial statements of the Melton Manufacturing Company reports net sales of $300,000 and
accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively.
What is the average collection period for accounts receivable in days?
36.5
96.1
60.8
48.7
Answer:
48.7
Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by
the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the
machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line
depreciation, annual depreciation will be $3,760 $4,072 $6,100
Question:
$4,100
Answer:
$4,100
Question:
On January 1, a machine with a useful life of five years and a residual value of $40,000 was purchased
for $120,000. What is the depreciation expense for year 2 under the double-decliningbalance method
of depreciation? $28,800 $38,400 $23,040 $48,000
Answer:
$28,800
Question:
, As a recent graduate of State University you're aware that IFRS requires component depreciation for
plant assets. A friend has asked you to succinctly explain what component depreciation means. Which
of the following correctly describes component depreciation? The method of depreciation
recommended for an asset that is expected to be significantly more productive in the first half of its
useful life. The method used to ensure that the depreciation rate remains constant from year to year.
The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately. The method used to prorate annual depreciation on a time basis.
Answer:
The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately. Given the following account balances at year end, compute the total intangible
assets on the balance sheet of Janssen Enterprises. Cash $1,500,000 Accounts Receivable 4,000,000
Trademarks 1,000,000 Goodwill 2,500,000 Research & Development Costs 2,000,000 $7,500,000.
$3,500,000. $9,500,000.
Question:
$5,500,000.
Answer:
$3,500,000. Bonds with a face value of $300,000 and a quoted price of 97¼ have a selling price of
$292,500. $291,750. $291,075.
Question:
$291,006.
Answer:
$291,750.
Question:
Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1,
2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have
a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of
the bonds on January 1, 2015? $400,000 $420,700 $418,400 $381,600
Answer:
$418,400 S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was
reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing 8,000
shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock
on the day the debt was settled is $1.80 per share. Given this information, the best journal entry for E.
Corp. to record for this transaction is Legal Expense 15,000 Common Stock 8,000 Paid-in Capital in
Excess of Par - Common 7,000 Legal Expense 14,400 Common Stock 8,000 Paid-in Capital in Excess
of Par - Common 6,400 Legal Expense 14,400 Common Stock 14,400 Legal Expense 15,000
Answers Latest update 2026/2027
Question:
An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If
Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for
the period will require a Debit to bad Debt expense for $3,300. Debit to Bad Debt Expense for $4,500.
Credit to Allowance for Doubtful Accounts for $4,500. Debit to Allowance for Doubtful Accounts for
$3,300.
Answer:
Debit to Allowance for Doubtful Accounts for $3,300.
Question:
The financial statements of the Melton Manufacturing Company reports net sales of $300,000 and
accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively.
What is the average collection period for accounts receivable in days?
36.5
96.1
60.8
48.7
Answer:
48.7
Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by
the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the
machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line
depreciation, annual depreciation will be $3,760 $4,072 $6,100
Question:
$4,100
Answer:
$4,100
Question:
On January 1, a machine with a useful life of five years and a residual value of $40,000 was purchased
for $120,000. What is the depreciation expense for year 2 under the double-decliningbalance method
of depreciation? $28,800 $38,400 $23,040 $48,000
Answer:
$28,800
Question:
, As a recent graduate of State University you're aware that IFRS requires component depreciation for
plant assets. A friend has asked you to succinctly explain what component depreciation means. Which
of the following correctly describes component depreciation? The method of depreciation
recommended for an asset that is expected to be significantly more productive in the first half of its
useful life. The method used to ensure that the depreciation rate remains constant from year to year.
The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately. The method used to prorate annual depreciation on a time basis.
Answer:
The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately. Given the following account balances at year end, compute the total intangible
assets on the balance sheet of Janssen Enterprises. Cash $1,500,000 Accounts Receivable 4,000,000
Trademarks 1,000,000 Goodwill 2,500,000 Research & Development Costs 2,000,000 $7,500,000.
$3,500,000. $9,500,000.
Question:
$5,500,000.
Answer:
$3,500,000. Bonds with a face value of $300,000 and a quoted price of 97¼ have a selling price of
$292,500. $291,750. $291,075.
Question:
$291,006.
Answer:
$291,750.
Question:
Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1,
2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have
a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of
the bonds on January 1, 2015? $400,000 $420,700 $418,400 $381,600
Answer:
$418,400 S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was
reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing 8,000
shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock
on the day the debt was settled is $1.80 per share. Given this information, the best journal entry for E.
Corp. to record for this transaction is Legal Expense 15,000 Common Stock 8,000 Paid-in Capital in
Excess of Par - Common 7,000 Legal Expense 14,400 Common Stock 8,000 Paid-in Capital in Excess
of Par - Common 6,400 Legal Expense 14,400 Common Stock 14,400 Legal Expense 15,000
