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1. What is an uncollectible account and when does it become uncollectible. 2. Wh

ID: 2459634 • Letter: 1

Question

1. What is an uncollectible account and when does it become uncollectible.

2. What are the different methods for accounting for uncollectible accounts?

3. What is the journal entry for writing off an uncollectible account under the direct write off method?

4. Given some data, what is the adjusting journal entry when using aging of receivables method?

5. Similar to #4 (paying close attention to the balance in the allowance for doubtful accounts)

6. Similar to #4 (paying close attention to the balance in the allowance for doubtful accounts)

7. Similar to #4 (paying close attention to the balance in the allowance for doubtful accounts)

8. Similar to #4 (paying close attention to the balance in the allowance for doubtful accounts)

9. Similar to #4 (paying close attention to the balance in the allowance for doubtful accounts)

10. Calculate the due date, interest and maturity value of a note. (note that you will not have access to a calendar so you’ll need to know how many days there are in a month—the knuckle method works well).

11. Calculate interest on a note

12. Prepare the journal entry for the receipt of a note receivable

13. Determine the cost basis of a new machine

14. Calculate the depreciation expense using the units of production method

15. Calculate the depreciation expense using the straight line method

16. Calculate the depreciation expense using the double declining balance method

17. What is the most widely used depreciation method?

18. What is residual value?

19. Determine depreciation using the straight line method

20. Calculate the depletion expense

21. What is the difference between depreciation, depletion, and amortization?

22. What is goodwill and how is it amortized?

23. What are intangible assets (give examples)

24. Calculate the due date of a note

25. Calculate the maturity value of a note

26. Calculate the interest on a note

27. Which taxes are deducted from an employee’s gross pay?

28. Given some data, calculate the gross pay for an employee

29. Given some data, calculate the FICA tax for payroll.

30. Given some data, calculate the net pay for an employee

31. Given some data, record the journal entry for payroll

32. What is the difference between FICA, FUTA, and SUTA?

33. Given some data, determine the number of shares of common stock outstanding

34. Given some data, record the journal entry for the issuance of common stock

35. Given some data, record the journal entry for the issuance of preferred stock

36. Given some data, calculate the annual dividend on preferred stock

37. What are the journal entries associated with the declaration of a stock dividend?

38. Given some data, calculate the total stockholder’s equity

39. What journal entries are required when a cash dividend is declared?

40. Given some data calculate stock split

41. Similar to #40

42. What are comparative financial statements? Common-size financial statements?

43. What is vertical analysis? Horizontal analysis?

44. Similar to #42

45. Given some data, calculate the percentage of increase in sales

46. Similar to #42 47. Given some data, identify the quick assets

48. Given some data, calculate working capital

49. Given some data, calculate the quick ratio

50. Given some data, calculate the current ratio

Explanation / Answer

Accounts uncollectible are loans, receivables or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, lack of proper documentation, etc.

Two methods of accounting for uncollectible accounts are used in practice-the allowance method and the direct write-off method.

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Accounts Receivable

——

4.

Bad debt expense

48,000

          Allowance for uncollectible accounts

48,000

  1. Bad Debts Expense

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Accounts Receivable

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