19) If the credit balance e of the Allowance for Doubefal Accounts account excee

Question

19) If the credit balance e of the Allowance for Doubefal Accounts account exceeds the amount of a bad debt being writen g written off, the entry to record the write-off against the allowance account results 19) A) No effect on the expenses of the current period B) An increase in the expenses of the current period. C. A reduction in current assets D) A reduction in current liabilities. E) A reduction in equity date (Use 20) A company borrowed S10000 by signing a 180 day promis ry noea9% The total interest alue on the maturity 360 days a year.)20) A) S450 B) $75 C)$1,800 D) $900 E) $300 21) D) July 12. 21) A 90-day note issued on April 10 matures on: A)July 11. ) July 10 C)July 13, E) July 9 22) Havermill Co. establishes a $250 petty cash fund on September 1.On September 30, the fund is replenished. The accumu The fund receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a: 22) A) Debit Petty Cash for $232. B) Credit to Merchandise Inventory for $137 C) Credit to Cash for $250 D) Credit to Cash for $18. E) Debit to Office Supplies for $73. 23) Which of the following events would cause a bank to debit a depositors A) There are deposits in transit on the account at month-end B) There are outstanding checks drawn on the account at month-end C) The bank corrects an error from previous month by adding $75 to the depositor accoumt D) The depositor orders new checks through the bank at a cost of $S0 E) The bank collects a note receivable and related interest on the depositor's behalf 24) During the month of July, Clanton Industries issued a check in the amount of $845 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconcililation, the company should: 24) A) Make a journal entry in the company records for an error B) Add the check amount to the book balance of cash. C) Deduct the check amount from the bank balance. D) Deduct the check amount from the book balance of cash. E) Add the check amount to the bank balance. 25) If a check correcty written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation? 25), A) Subtract $45 from the bank's balance. B) Suburact $45 from the bank's balance and add S45 to the book's balance. C) Subtract $45 from the book balance. D) Add $45 to the book balance. E) Add $45 to the bank's balance.

Explanation / Answer

19. No effect on expenses of current year because provision exceds actual written off of bad debets

20. Principal amount = $10000

Rate of interst = 9%

Period of amount = 180 days

Amount of interst = principal *rate of interst* period

= $10000*9%*180/360

= $450

20. Issued on 10 april

period 90 days

Maturity period is 9 th july

21. Debit petty cash = $ 232

Petty cash a/c Dr. 232

To cash a/ c cr. 232

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