Allowance/Direct Method
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Vocab
Age Allowance
100
This method of accounting for bad debt expenses the accounts without estimating
What is Direct Method
100
Allowance account has a beginning balance of 100 credit and an ending balance of 357. What is the missing figure?
What is 257
100
A = ______ + E
What is Liability
100
Allowance for Doubtful Accounts is a _________ account
What is a Contra Asset.
100
500,000 not yet due @ 1.25% 250,000 1-30 days past @ 3% 100,000 31-60 days past @ 3.5%
What is 6,250+7,500+3,500=17250
200
This method puts bad debts into an allowance account and then adjusts them at the end of the year into bad debt expense.
What is Allowance Method
200
The Allowance account has a beginning balance of 676 debit and an ending balance of 950 what's the missing value.
What is 1,626
200
Beg _________ + Net Income - Dividends = End ________
What is Retained Earnings
200
The expectred proceeds from converting assets into cash
What is Realizable Value
200
500 not yet due @1.53% 1,000 1-30 days past @2% 300 31-60 days past @ 2.5%
What is 7.65+20+7.50=35.15
300
Allowance Method: sold 1,000 of merchandise on credit that had a cost of 500.
A/R 1000 Sales 1000 COGS 500 COGS 500
300
The allowance account is for a new company and has an ending balance of 500. What is the missing factor?
What is 500 credit
300
Beg Inventory +Purchases= Avail for sale - ending inventory=
COGS
300
states that an amount can be ignored if its effect on the financial statements is unimportant to users' business decisions.
What is Materiality Constraint
300
5,000 not yet due @ 5% 2,000 30-60 past @ 10%
What is 250+200=450
400
Recieved 500 for accounts receivable.
Cash 500 A/R 500
400
The allowance account has a beginning balance of a 500 credit, a debit of 200 and and ending balance of 1000 what is the missing value?
What is 700
400
Purchases -Returns and Allow -Discounts +Freight In =
What is Net Purchases
400
The day a note must be repaid
What is Maturity Date.
400
6000 not yet due @ 6.76% 3000 1-30 days past @ 4%
What is 405.6+120=525.6
500
Estimated that 200 of the A/R will not be collected
Allowance 200 A/R 200
500
What is the ending balance of the allowance account if the beginning balance is a 500 debit and a 700 credit.
What is 200 credit
500
The letters in ADE=CLRR stand for?
What is Assets, Dividends, Expenses, Common Stock, Liabilities, Revenue & Retained Earnings
500
Uncollectable accounts from customers are known as this
What is Bad Debts
500
2,000 not yet due @ 1.75% 1,000 30-60 past @ 2%
What is 35+20=55
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