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1.   The correct option of this multiple choice question (mcq) is A, as uncollectible accounts expense is already charged to income statement but accounts receivables are not removed off or accounted for on balance sheet. Initially, under allowance method, when we record Adjustments, atleast one income statement account and one balance sheet account are affected. Uncollectible account is estimated on sales or receivables in order to calculate the expected values of sales or receivables due to non-payment from customers who failed to pay to the company for the goods sold to them on credit. The adjusting entry to record is to debit uncollectible accounts expense and a credit to allowance for doubtful accounts. Uncollectible accounts expense is an income statement account which affects income statement and recorded as a loss while allowance for doubtful accounts is a contra asset account which affects accounts receivables on balance sheet i.e., it is deducted from accounts rece...

1. The correct choice of this multiple choice question is (A), as the portion of office supplies account amounting to $1,100 is still unused or unconsumed, which represents office supplies on hand i.e., a current asset, as it is still not charged to expense on the last day of the accounting period, so we transferred the portion of office supplies expense account to office supplies account. So, we debit supplies account and credit supplies expense account with the amount of $1,100. The other options of this mcq are not correct choices here. 2. The correct option is C, as the payment of freight made after the goods sold to customers i.e., the customers purchased the goods from the company and the company delivered the goods to his place as the company offers free delivery to its customers so the delivery expense / shipping charges is paid by the company. So, freight outward (carriage outward / transportation outward) is treated as a selling & distribution expense under opera...

The correct answer of this multiple choice question (mcq) is (D), as proved below: We know that total assets are equal to total liabilities plus shareholders’ equity as shown by the following accounting equation formula:   Assets = Liabilities + Equity We are given the following accounting data: Total Assets = Current Assets + Fixed Assets We have CA and FA from the given accounting data as shown below: Current Assets = Cash + Accounts Receivable + Inventory + Supplies Current Assets = $70,000 + $50,000 + $138,000 + $8,000 = $266,000 Fixed assets or non-current assets include the following: Fixed Assets = Buildings + Equipment = $160,000 + $340,000 = $500,000 So, by putting the values in current assets equation, we have total assets on balance sheet: Total Assets = $266,000 + $500,000 = $766,000 Total Liabilities = Current Liabilities + Long-Term Liabilities = $618,000 + $0 = $618,000 Current Liabilities = Accounts Payable + Accrued Expenses + Utility Expenses Payable Current ...

1. The correct option of this multiple choice question is D as proved below: Here We Are Given: Retained Earnings at September 1, 2017 (Beginning Retained Earnings) = $423,000 Revenues = $60,000 Expenses = $36,000 Equipment = $36,000 (Here the value of equipment is irrelevant as it is not required in the calculation of RE at September 30, 2017) Dividends = $6,000 We Need To Find Out: Retained Earnings at September 30, 2017 (Ending Retained Earnings) = ? As, we know the formula for the calculation of Ending RE that is shown below: Retained Earnings at September 30, 2017 = Retained Earnings at September 1, 2017 + Net Income - Dividends As, we know the Net Income’s Formula which is shown below: Net Income = Revenues - Expenses = $60,000 - $36,000 = $24,000 By putting the values in ending retained earnings formula, we have: RE at September 30, 2017 = $423,000 + $24,000 - $6,000 = $441,000 2. The correct option of this multiple choice question (mcq) is A, ...

The correct options of this multiple choice questions (mcq) are A, E, I, J and K, as the Contra Accounts decrease the values of these relevant accounts which are sales revenue, purchases, accounts receivable, fixed assets (non-current assets) and inventory here. These contra accounts have opposite balances of their relevant accounts. For example, sales revenue has credit balance while its contra revenue accounts have debit balances, so the contra revenue accounts decrease the value of sales revenue account in the income statement. The option A shows Sales Revenue which is recorded in Income Statement for the period. The contra revenue accounts for sales revenue are Sales returns & allowances and discounts which reduce the balance of sales revenue in Income Statement. The option E is also correct option as it shows purchases which decreases when purchases returns & allowances and purchases discounts are occurred, which are contra expense accounts and deducted from purchases...