2016年美国CPA练习题精选：Financial 2

At January 1, 1994, Jamin Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Jamin's credit sales have been uncollectible. During 1994, Jamin wrote off $325,000 of uncollectible accounts. Credit sales for 1994 were $9,000,000. In its December 31, 1994, balance sheet, what amount should Jamin report as allowance for uncollectible accounts?

a. $180,000

b. $245,000

c. $440,000

d. $115,000

答案：D

Explanation

Choice "d" is correct. Under the percentage of credit sales approach, uncollectible accounts expense would be debited and allowance for uncollectible accounts would be credited for $180,000 (2% x $9,000,000). For accounts written off, allowance for uncollectible accounts would be debited and accounts receivable would be credited for $325,000. The December 31, 1994 allowance for uncollectible accounts balance would be $115,000 ($260,000 + $180,000 - $325,000).

Choice "a" is incorrect. $180,000 is the 1994 addition to the allowance for uncollectible accounts recognized under the percentage of credit sales method. It does not represent the balance of the account at year-end.

Choice "b" is incorrect. This calculation incorrectly debits the allowance for uncollectible accounts for the $180,000 adjustment.

Choice "c" is incorrect. This calculation does not reduce (debit) the allowance for uncollectible accounts for the $325,000 of accounts written off.