ch 8 accounting final exam questions
well answered graded A+
net account receivable - correct answer ✔✔gross AR - (allowances + discounts) - bad debts
percentage of credit sales method - correct answer ✔✔bases bad debt expense on the
historical percentage of credit sales that result in bad debts
aging method - correct answer ✔✔Basing the estimate of future bad debts on the various ages
of individual accounts receivable, using a higher percentage for "old" accounts than for "new"
accounts
bad debt expense - correct answer ✔✔difference between ending balance of allowance for bad
debt and credit balance of allowance for bad debt
Interest Formula - correct answer ✔✔principal x rate x time
aging of receivables method - correct answer ✔✔A method of estimating uncollectible
receivables by determining the balance of the Allowance for Bad Debts account based on the
age of individual accounts receivable.
receivable turnover ratio - correct answer ✔✔Net Credit Sales/Average Net Receivables
days to collect - correct answer ✔✔365/receivables turnover ratio
The amount of uncollectible accounts at the end of the year is estimated to be $30,000, using
the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts
well answered graded A+
net account receivable - correct answer ✔✔gross AR - (allowances + discounts) - bad debts
percentage of credit sales method - correct answer ✔✔bases bad debt expense on the
historical percentage of credit sales that result in bad debts
aging method - correct answer ✔✔Basing the estimate of future bad debts on the various ages
of individual accounts receivable, using a higher percentage for "old" accounts than for "new"
accounts
bad debt expense - correct answer ✔✔difference between ending balance of allowance for bad
debt and credit balance of allowance for bad debt
Interest Formula - correct answer ✔✔principal x rate x time
aging of receivables method - correct answer ✔✔A method of estimating uncollectible
receivables by determining the balance of the Allowance for Bad Debts account based on the
age of individual accounts receivable.
receivable turnover ratio - correct answer ✔✔Net Credit Sales/Average Net Receivables
days to collect - correct answer ✔✔365/receivables turnover ratio
The amount of uncollectible accounts at the end of the year is estimated to be $30,000, using
the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts
