A. INSTRUCTIONS: Answer the following questions or complete the statements by writing the
appropriate words or amounts in the Answers column.
							Answers
1. Allowance for Doubtful Accounts has a credit balance of $1,000 at the
end of the year, before adjustments. Sales for the year amounted to
$950,000, and sales returns and allowances amounted to $50,000. If
uncollectible accounts expense is estimated at 1% of net sales, the
amount of the appropriate adjusting entry will be							$		1
2. If, instead of a percentage of net sales, the adjusting entry in Question 1
is based on an analysis of receivables that indicates doubtful accounts
of $9,500, the amount of the adjustment will be							$		2
3. Allowance for Doubtful Accounts has a debit balance of $700 at the end
of the year, before adjustments and an analysis of receivables indicates
doubtful accounts of $9,000, the amount of the appropriate adjusting
entry will be							$		3
4. The maturity value of a $70,000, 90-day, 6% note receivable is							$		4
5. In writing off an uncollectible account by the direct write-off method,
the account debited is									5
6. At the end of the fiscal year, after the accounts are closed, Accounts
Receivable has a balance of $8,000,000, and Allowance for Doubtful
Accounts has a balance of $60,000. What is the expected net realizable
value of the receivables?							$		6
7. In which subsection of the balance sheet would receivables that are
expected to be realized in cash within one year be reported?									7
8. Allowance for Doubtful Accounts is listed on the appropriate financial
statement in the subsection titled									8
9. Notes receivable expected to be collected in 2 years are listed on the
financial statements in the subsection titled									9
10.What is the due date of a 3 month note dated December 30, 2007?									10
11-12. Coral Company issued a 60-day, 8% note for $15,000, dated April 5, to Kandue Company on account
11. Determine the due date of the note.									11
12. Determine the maturity value of the note.							$		12