ACCT 201A Exam 2 Hoffman Questions
And Answers
When a company provides services on account, which of the
following accounts is debited?
Service Revenue.
Accounts Payable.
Accounts Receivable.
Cash. -
correct answer ✅Accounts Receivable.
A sales discount is recorded by the seller as a(n):
Expense.
Contra asset.
Contra revenue.
Liability. -
correct answer ✅contra
On January 18, a company provides services to a customer for $500
and offers the customer terms 2/10, n/30. Which of the following
would be recorded when the customer remits payment on January
25?
Debit Cash for $500.
Credit Accounts Receivable for $490.
,ACCT 201A Exam 2 Hoffman Questions
And Answers
Credit Service Revenue for $500.
Debit Sales Discount for $10. -
correct answer ✅Debit Sales Discount for $10.
Which of the following refers to the seller reducing the customer's
balance owed because of some deficiency in the company's
product or service?
Sales Allowance.
Sales Discount.
Trade Discount.
Allowance for Uncollectible Accounts. -
correct answer ✅Sales Allowance.
Use the information below to calculate net revenues.
Service Revenue$100,000 Sales Discounts$2,000 Accounts
Receivable$15,000 Sales Allowances$7,000 Cash$18,000
$91,000.
$85,000.
$68,000.
,ACCT 201A Exam 2 Hoffman Questions
And Answers
$98,000. -
correct answer ✅$91,000. (Don't include cash or account
receivable both assets)
On August 4, Sanders provides services to Frederickson for $5,000,
terms 3/10, n/30. Frederickson pays for the services on August 12.
What amount would Sanders record as revenue on August 4?
$4,850.
$5,000.
$5,150.
$5,300. -
correct answer ✅$5,000.
On August 4, Sanders provides services to Frederickson for $5,000,
terms 3/10, n/30. Frederickson pays for the services on August 12.
What is the amount of net revenues (total revenue minus sales
discounts) as of August 12?
$4,850.
$5,000.
$5,150.
, ACCT 201A Exam 2 Hoffman Questions
And Answers
$5,300. -
correct answer ✅$4,850.
The entry to record the estimate for uncollectible accounts
includes:
A debit to Allowance for Uncollectible Accounts.
A credit to Accounts Receivable.
A debit to Sales Revenue.
A debit to Bad Debt Expense. -
correct answer ✅A debit to Bad Debt Expense.
Under the allowance method for uncollectible accounts, the
balance of Allowance for Uncollectible Accounts increases when:
Future bad debts are estimated.
Bad debts actually occur.
Cash is received from customers.
Never. -
correct answer ✅Future bad debts are estimated.
Schmidt Company's Accounts Receivable balance is $100,000, its
adjusted balance in Allowance for Uncollectible Accounts is $4,000,
And Answers
When a company provides services on account, which of the
following accounts is debited?
Service Revenue.
Accounts Payable.
Accounts Receivable.
Cash. -
correct answer ✅Accounts Receivable.
A sales discount is recorded by the seller as a(n):
Expense.
Contra asset.
Contra revenue.
Liability. -
correct answer ✅contra
On January 18, a company provides services to a customer for $500
and offers the customer terms 2/10, n/30. Which of the following
would be recorded when the customer remits payment on January
25?
Debit Cash for $500.
Credit Accounts Receivable for $490.
,ACCT 201A Exam 2 Hoffman Questions
And Answers
Credit Service Revenue for $500.
Debit Sales Discount for $10. -
correct answer ✅Debit Sales Discount for $10.
Which of the following refers to the seller reducing the customer's
balance owed because of some deficiency in the company's
product or service?
Sales Allowance.
Sales Discount.
Trade Discount.
Allowance for Uncollectible Accounts. -
correct answer ✅Sales Allowance.
Use the information below to calculate net revenues.
Service Revenue$100,000 Sales Discounts$2,000 Accounts
Receivable$15,000 Sales Allowances$7,000 Cash$18,000
$91,000.
$85,000.
$68,000.
,ACCT 201A Exam 2 Hoffman Questions
And Answers
$98,000. -
correct answer ✅$91,000. (Don't include cash or account
receivable both assets)
On August 4, Sanders provides services to Frederickson for $5,000,
terms 3/10, n/30. Frederickson pays for the services on August 12.
What amount would Sanders record as revenue on August 4?
$4,850.
$5,000.
$5,150.
$5,300. -
correct answer ✅$5,000.
On August 4, Sanders provides services to Frederickson for $5,000,
terms 3/10, n/30. Frederickson pays for the services on August 12.
What is the amount of net revenues (total revenue minus sales
discounts) as of August 12?
$4,850.
$5,000.
$5,150.
, ACCT 201A Exam 2 Hoffman Questions
And Answers
$5,300. -
correct answer ✅$4,850.
The entry to record the estimate for uncollectible accounts
includes:
A debit to Allowance for Uncollectible Accounts.
A credit to Accounts Receivable.
A debit to Sales Revenue.
A debit to Bad Debt Expense. -
correct answer ✅A debit to Bad Debt Expense.
Under the allowance method for uncollectible accounts, the
balance of Allowance for Uncollectible Accounts increases when:
Future bad debts are estimated.
Bad debts actually occur.
Cash is received from customers.
Never. -
correct answer ✅Future bad debts are estimated.
Schmidt Company's Accounts Receivable balance is $100,000, its
adjusted balance in Allowance for Uncollectible Accounts is $4,000,
