ACCOUNTING Questions ?

ACCOUNTING Questions ?
A 90-day, 12% note for $20,000, dated April 10, is received from a customer on account. If the note is discounted at 15% on May 10, the due date is a. July 8 b. July 11 c. July 10 d. July 9 Under the allowance method, when a year-end adjustment is made for estimated uncollectable accounts a. Total Assets decrease b. Total Assets are uncharged c. Net Income is unchanged d. Liabilities decrease You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will NOT make any future payments. Assuming you use the allowance method, the entry you make is to a. debit Bad Debt Expense and credit Allowance b. debit Bad Debt Expense and credit Accounts Receivable c. debit Allowance for Doubtful Accounts and credit Accounts Receivable d. debit Allowance for Doubtful Accounts and credit Bad Debt Expense The balance in Allowance for Doubtful Accounts must be considered prior to end of period adjustment when using which of the following methods? a. Analysis of receivables allowance method b. Direct write-off method c. Accrual method d. Net realizable method Donavan Company uses the estimate based on analysis of receivables to account for uncollectible accounts. The company has determined that the Irish Company account is uncollectible. To write-off this account, Donovan should debit a. Uncollectible Accounts Expense and credit Accounts Receivable b. Uncollectible Accounts Expense and credit Allowance for Doubtful Accounts c. Allowance for Doubtful Accounts and credit Accounts Receivable d. Accounts receivable and credit Allowance for Doubtful Accounts