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1. A $100 petty cash fund has cash of $15 and receipts of $80. The journal entry to replenish the account would include a credit to Cash for $85. Petty Cash for $85. Cash Over and Short for $5. Cash for $80. 2. The maturity value of a $30,000, 8%, 3-month note receivable is $30,600. $30,200. $30,240. $32,400. 3. The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts is relevant to both bases of adjusting for uncollectible accounts. is relevant when using the percentage of receivables basis. will never show a debit balance at this stage in the accounting cycle. is relevant when using the percentage of sales basis. 4. The percentage of receivables basis for estimating uncollectible accounts emphasizes the relationship between sales and accounts receivable. income statement relationships. cash realizable value. the relationship between accounts receivable and bad debts expense.
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