CSUF ACCT 201A (HOFFMAN) EXAM SCRIPT
QUESTIONS WITH SOLUTIONS 2026
◉ On December 31, the Accounts Receivable ending balance is
$80,000. Assume that the unadjusted balance of Allowance for
Uncollectible Accounts is a credit of $500 and that the company
estimates 7% of the accounts receivable will not be collected. The
amount of bad debt expense recorded on December 31 will be:
$5,000.
$5,100.
$5,600.
$6,100. Answer: $5,100.
◉ Suppose the balance of the allowance for uncollectible accounts at
the end of the current year is $800 (credit) before any adjustment
entry. The company estimates future uncollectible accounts to be
$5,600. At what amount would bad debt expense be reported in the
current year's income statement?
$800.
$4,800.
$5,600.
$6,400. Answer: $4,800.
,◉ On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The
note receivable and interest are due on March 31, 20X2 (one year
later). Assuming Nelson Inc. has a December 31 year-end, on March
31, 20X2, Nelson Inc. will record interest revenue of:
$8,000.
$6,000.
$2,000.
$0. Answer: $2,000.
◉ On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The
note receivable and interest are due on March 31, 20X2 (one year
later). On December 31, 20X1, Nelsen will accrue interest revenue
of:
$8,000.
$6,000.
$2,000.
$0. Answer: $6,000.
◉ Accounts receivable are best described as
Liabilities of the company that represent the amount owed to
suppliers.
Amounts that have previously been received from customers.
Assets of the company representing the amount owed by customers.
,Amounts that have previously been paid to suppliers. Answer:
Assets of the company representing the amount owed by customers.
◉ The allowance method for uncollectible accounts
Is required by Generally Accepted Accounting Principles.
Allows for the possibility that some accounts will not be collected.
Reports net accounts receivable for the amount of cash expected to
be collected.
All of the answer choices are correct Answer: All of the answer
choices are correct
◉ Using the allowance method, the effect on the current year's
financial statements of writing off an account receivable generally is
to
Decrease total assets.
Decrease net income. Answer: Neither I nor II
◉ A company has the following account balances at the end of the
year:
Credit Sales = $400,000
Accounts receivable = $80,000
Allowance for Uncollectible Accounts = $400 debit
, The company estimates future uncollectible accounts to be 4% of
accounts receivable. At what amount would Bad Debt Expense be
reported in the current year's income statement?
$400.
$2,800.
$3,200.
$3,600. Answer: $3,600.
◉ On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson
Supply using a 9% note due in 12 months. Nees has a December 31
year-end. Calculate the amount of interest revenue Nees will report
in its 2021 and 2022 income statements.
2021 = $300; 2022 = $600.
2021 = $600; 2022 = $300.
2021 = $900; 2022 = $0.
2021 = $0; 2022 = $900. Answer: 2021 = $600; 2022 = $300.
◉ A company has the following account balances at the end of the
year:
Credit Sales = $400,000
Accounts receivable = $80,000
Allowance for Uncollectible Accounts = $400 credit
QUESTIONS WITH SOLUTIONS 2026
◉ On December 31, the Accounts Receivable ending balance is
$80,000. Assume that the unadjusted balance of Allowance for
Uncollectible Accounts is a credit of $500 and that the company
estimates 7% of the accounts receivable will not be collected. The
amount of bad debt expense recorded on December 31 will be:
$5,000.
$5,100.
$5,600.
$6,100. Answer: $5,100.
◉ Suppose the balance of the allowance for uncollectible accounts at
the end of the current year is $800 (credit) before any adjustment
entry. The company estimates future uncollectible accounts to be
$5,600. At what amount would bad debt expense be reported in the
current year's income statement?
$800.
$4,800.
$5,600.
$6,400. Answer: $4,800.
,◉ On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The
note receivable and interest are due on March 31, 20X2 (one year
later). Assuming Nelson Inc. has a December 31 year-end, on March
31, 20X2, Nelson Inc. will record interest revenue of:
$8,000.
$6,000.
$2,000.
$0. Answer: $2,000.
◉ On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The
note receivable and interest are due on March 31, 20X2 (one year
later). On December 31, 20X1, Nelsen will accrue interest revenue
of:
$8,000.
$6,000.
$2,000.
$0. Answer: $6,000.
◉ Accounts receivable are best described as
Liabilities of the company that represent the amount owed to
suppliers.
Amounts that have previously been received from customers.
Assets of the company representing the amount owed by customers.
,Amounts that have previously been paid to suppliers. Answer:
Assets of the company representing the amount owed by customers.
◉ The allowance method for uncollectible accounts
Is required by Generally Accepted Accounting Principles.
Allows for the possibility that some accounts will not be collected.
Reports net accounts receivable for the amount of cash expected to
be collected.
All of the answer choices are correct Answer: All of the answer
choices are correct
◉ Using the allowance method, the effect on the current year's
financial statements of writing off an account receivable generally is
to
Decrease total assets.
Decrease net income. Answer: Neither I nor II
◉ A company has the following account balances at the end of the
year:
Credit Sales = $400,000
Accounts receivable = $80,000
Allowance for Uncollectible Accounts = $400 debit
, The company estimates future uncollectible accounts to be 4% of
accounts receivable. At what amount would Bad Debt Expense be
reported in the current year's income statement?
$400.
$2,800.
$3,200.
$3,600. Answer: $3,600.
◉ On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson
Supply using a 9% note due in 12 months. Nees has a December 31
year-end. Calculate the amount of interest revenue Nees will report
in its 2021 and 2022 income statements.
2021 = $300; 2022 = $600.
2021 = $600; 2022 = $300.
2021 = $900; 2022 = $0.
2021 = $0; 2022 = $900. Answer: 2021 = $600; 2022 = $300.
◉ A company has the following account balances at the end of the
year:
Credit Sales = $400,000
Accounts receivable = $80,000
Allowance for Uncollectible Accounts = $400 credit
