1 The balance of the debtors appeared in the trial balance of Al-Amal Company with an amount of $10,000, and the company decided at the end of the period to write off a debt of $1,000.
And forming a provision for doubtful debts at 10% of the debtors’ balance, so what is the value of good debts?
$9000
$900
$1000
$8,100
Nothing mentioned
2 Which of the following statements is false about bad debts?
It is recognized when the company is certain that it will not be able to collect its debt
Recorded on the debit side when proven
Bad debts are closed in the income summary account or in the allowance account
It appears on the assets side, deducted from the accounts receivable account
Nothing mentioned
3 Which of the following statements is wrong with regard to the provision for doubtful debts?
It is proven in line with the principle of caution
The allowance account appears on the assets side, deducted from the accounts receivable account
When writing the entry, the corresponding account for the allowance account is the doubtful debts account
The value of the new allowance is not recognized if its balance is equal to the previous allowance
Nothing mentioned
4Al-Salam Company decided to form an allowance for doubtful debts at 5% of the debtors’ balance amounting to $20,000.
Note that the allowance balance for the previous fiscal period is $1,000. What is the entry that will be recorded?
From H/ provision to H/ doubtful debts
No entry will be recorded
From h/ doubtful debts to h/ provision
From h/ debtors to h/ provision
Nothing mentioned
5 The balance of the debtors appeared in the trial balance of Al-Ihsan Company with an amount of $50,000, and the company decided to write off an old debt of $10,000.
And creating a provision for doubtful debts at a rate of 10%. What is the value of the provision to be formed?
$5,000
$1000
$4,000
2000$$
Nothing mentioned
6If you know that the balance of the debtors in the books was equal to 25,000 $, and the deferred sales were equal to 15,000 $,
The company decided to form a provision for doubtful debts at 10% of the deferred sales. What is the value of the provision using the method
Income statement entry?
$2,500
$1,500
$1000
$750
Nothing mentioned
7 Al-Amal Company recovered a debt that was written off several years ago, at a value of $6,000. If you know that the allowance balance
What appears in the books for the current period is $7,000, and the debtors’ balance is $10,000. The balances will change to:
The balance of debtors is $4,000
The balance of debtors is $16,000
The allowance balance is $1,000
The allowance balance is $13,000
Nothing mentioned
8In which of the following cases is the provision for doubtful debts recorded on the credit side?
If the allowance to be formed is less than the old allowance
When recovering a debt that was executed in the past
When closing the bad debts account in the allowance account
First and second answer
Nothing mentioned
9 If the value of the previous provision in the books (the old one) is greater than the value of the provision to be created (the new one), it will lead to:
Reducing the allowance balance
Increase the allowance balance
It won't affect anything
Expenses will increase in the company
Nothing mentioned
10Al-Amal decided to form an allowance for doubtful debts at 10% of the debtors’ balance amounting to $10,000.
If you know that the allowance balance for the previous financial period was equal to $1,000, what is the settlement entry that will be recorded?
From h/ doubtful debts to h/ provision for doubtful debts
No entry is recorded
From h/ provision for doubtful debts to h/ doubtful debts
From h/ debtors to h/ provision for doubtful debts
Nothing mentioned
And forming a provision for doubtful debts at 10% of the debtors’ balance, so what is the value of good debts?
$9000
$900
$1000
$8,100
Nothing mentioned
2 Which of the following statements is false about bad debts?
It is recognized when the company is certain that it will not be able to collect its debt
Recorded on the debit side when proven
Bad debts are closed in the income summary account or in the allowance account
It appears on the assets side, deducted from the accounts receivable account
Nothing mentioned
3 Which of the following statements is wrong with regard to the provision for doubtful debts?
It is proven in line with the principle of caution
The allowance account appears on the assets side, deducted from the accounts receivable account
When writing the entry, the corresponding account for the allowance account is the doubtful debts account
The value of the new allowance is not recognized if its balance is equal to the previous allowance
Nothing mentioned
4Al-Salam Company decided to form an allowance for doubtful debts at 5% of the debtors’ balance amounting to $20,000.
Note that the allowance balance for the previous fiscal period is $1,000. What is the entry that will be recorded?
From H/ provision to H/ doubtful debts
No entry will be recorded
From h/ doubtful debts to h/ provision
From h/ debtors to h/ provision
Nothing mentioned
5 The balance of the debtors appeared in the trial balance of Al-Ihsan Company with an amount of $50,000, and the company decided to write off an old debt of $10,000.
And creating a provision for doubtful debts at a rate of 10%. What is the value of the provision to be formed?
$5,000
$1000
$4,000
2000$$
Nothing mentioned
6If you know that the balance of the debtors in the books was equal to 25,000 $, and the deferred sales were equal to 15,000 $,
The company decided to form a provision for doubtful debts at 10% of the deferred sales. What is the value of the provision using the method
Income statement entry?
$2,500
$1,500
$1000
$750
Nothing mentioned
7 Al-Amal Company recovered a debt that was written off several years ago, at a value of $6,000. If you know that the allowance balance
What appears in the books for the current period is $7,000, and the debtors’ balance is $10,000. The balances will change to:
The balance of debtors is $4,000
The balance of debtors is $16,000
The allowance balance is $1,000
The allowance balance is $13,000
Nothing mentioned
8In which of the following cases is the provision for doubtful debts recorded on the credit side?
If the allowance to be formed is less than the old allowance
When recovering a debt that was executed in the past
When closing the bad debts account in the allowance account
First and second answer
Nothing mentioned
9 If the value of the previous provision in the books (the old one) is greater than the value of the provision to be created (the new one), it will lead to:
Reducing the allowance balance
Increase the allowance balance
It won't affect anything
Expenses will increase in the company
Nothing mentioned
10Al-Amal decided to form an allowance for doubtful debts at 10% of the debtors’ balance amounting to $10,000.
If you know that the allowance balance for the previous financial period was equal to $1,000, what is the settlement entry that will be recorded?
From h/ doubtful debts to h/ provision for doubtful debts
No entry is recorded
From h/ provision for doubtful debts to h/ doubtful debts
From h/ debtors to h/ provision for doubtful debts
Nothing mentioned
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