Self Assessment Quizzes

CHAPTER 24: Section 3 Estimating Uncollectible Accounts Receivable

	1.	If net sales are $190,000 and uncollectible accounts expense is $2,850 then the percentage of net sales used for uncollectible accounts expense is

		a.	2.50%
		b.	2%
		c.	1.50%
		d.	1%

	2.	To determine the adjustment of uncollectible accounts expense when using the aging of accounts receivable method

		a.	add the balance for Allowance for Uncollectible Accounts and the total estimated amount
		b.	multiply the net sales by the percentage of net sales used
		c.	subtract the balance for Allowance for Uncollectible Accounts from the total estimated uncollectible amount
		d.	multiply net sales by the percentage of uncollectible accounts

	3.	To calculate uncollectible accounts expense using the percentage of net sales method

		a.	calculate net sales, subtract uncollectible amount, enter the amount on the work sheet
		b.	multiply accounts receivable by net sales, enter the amount calculated on the work sheet
		c.	multiply net sales by accounts receivable, enter the amount calculated on the work sheet
		d.	determine the percentage, calculate net sales, multiply net sales by the percentage, enter the amount calculated on the work sheet

	4.	If net sales are $75,000 and uncollectible accounts percentage is 2% the amount of uncollectible accounts expense is

		a.	$7,500
		b.	$1,500
		c.	$15,000
		d.	$2,000

	5.	When the uncollectible accounts expense is based on the date each customer account is due it is called the

		a.	straight-line method
		b.	sum of accounts receivable method
		c.	net accounts receivable method
		d.	aging of accounts receivable method