Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Which of the following accounts is not depreciated?
a) Equipment b) Furniture c) Land d) Building e) Inventory |
Land and Inventory are not depreciated.
|
Two accounts
|
|
|
A piece of equipment costs $20,000. Estimate residual value is $2,000. Estimated to have a 4-year life. What is the depreciation for Years 1 & 2?
|
Year 1 - $4,500
Year 2 - $4,500 |
|
|
|
Company has credit sales of $100,000. Bad debt is estimated at 3% of credit sales. AFDA has a CR balance of $1,000. What is the adj. entry to BDE at years end?
|
BDE - $3,000 debit.
|
|
|
|
Company has A/R of $100,000. Bad debt is 4% of A/R. AFDA has a CR balance of $1,000. What will the year-end AFDA entry be?
|
A credit to AFDA of $3,000.
|
|
|
|
True or False
The adjusting entry to record depreciation expense debits Accumulated Depreciation. |
False. It debits Depreciation Expense, credits Accumulated Depreciation.
|
|
|
|
True or False.
Allowance For Doubtful Accounts always has a credit balance. |
False.
|
|
|
|
Net realizable value of accounts receivable is...
a) the total of all accounts receivable. b) the total of all accounts receivable plus the allowance for doubtful accounts. c) the total of all accounts receivable less the allowance for doubtful accounts. d) the total of all accounts receivable plus bad debt expense. |
c)
|
|
