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Practise Quiz

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YOUR NEXT QUIZ (ON TUE) WILL BE OVER ACCOUNTS AND NOTES RECEIVABLE AND FIXED ASSETS
FOR ACCOUNTS RECEIVABLE:
HOW TO CALCULATE AND RECORD BAD DEBTS FROM AN AGING SCHEDULE
JOURNAL ENTRY TO FACTOR AN ACCOUNT RECEIVABLE
WRITEOFF OF A BAD DEBT
FOR NOTES RECEIVABLE
KNOW HOW THEY DIFFER FROM ACCOUNTS RECEIVABLE

FIXED ASSETS
KNOW THAT STRAIGHT LINE, DECLINING BALANCE, MACRS AND UNITS OF ACTIVITY ARE ALL DEPRECIATION METHODS
KNOW HOW TO CALCULATE STRAIGHT LINE AND DOUBLE DECLINING BALANCE DEPRECIATION FOR THE FIRST TWO YEARS OF AN ASSET’S LIFE
KNOW WHAT BOOK VALUE AND SALVAGE VALLUE MEAN
KNOW HOW TO RECORD SALE AND DISPOSAL OF FIXED ASSETS

Practice questions for bonus quiz two. The answers are on the pages after the questions.
QUESTIONS
1. You have the following accounts on your books just before making adjusting entries at fiscal year end.

Accounts receivable Allowance for bad debts 10,000 70

If you estimate bad debts as 2% of Accounts receivable, what will you record as bad debt expense for the year?

2. Refer to the information above in #1. After the adjusting entry, what is the net realizable value (carrying value or book value) of the account receivable?

3. Accounts Receivable is an asset and has a debit balance. The Allowance for Bad Debts is a contra asset account and normally has a credit balance. What transaction can cause the Allowance to temporarily have a debit balance?

4. You have the following accounts on your books just before making adjusting entries at fiscal year end.

Accounts receivable Allowance for bad debts 10,000 200

If you estimate bad debts as 2% of Accounts receivable, what will you record as bad debt expense for the year?

5. Refer to the information above in #4. After the adjusting entry, what is the net realizable value (carrying value or book value) of the

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