Question 1

The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable.During the current year,the following transactions occurred:

Accepted Answer

The answer of The Links Company uses the percent of...

Question 2

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa Studios signed a 60-day,10% promissory note for $7,800.If the note is dishonored,what is the amount due on the note?

Accepted Answer

A)  $130
B)  $7,800
C)  $7,930
D)  $8,050
E)  $8,130F) A) and D)
G) A) and C)

Question 3

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day,6% promissory note for the $4,000.Food Supplier's journal entry to record the sales transaction is:

Accepted Answer

A)  Debit Accounts Receivable $4,000;credit Sales $4,000
B)  Debit Notes Receivable $4,000;credit Sales $4,000
C)  Debit Accounts Receivable $4,060;credit Sales $4,060
D)  Debit Notes Receivable $4,060;credit Sales $4,060
E)  Debit Notes Receivable $4,000;debit Interest Receivable $60;credit Sales $4,060F) A) and B)
G) B) and C)

Question 4

The interest accrued on $7,500 at 6% for 90 days is:

Accepted Answer

A)  $450.00.
B)  $37.50.
C)  $112.50.
D)  $11.25.
E)  $1,800.00.F) A) and E)
G) A) and D)

Question 5

The ____________________ of a note is the day the principle plus interest of a note must be repaid.

Accepted Answer

The answer of The ____________________ of a note is the...

Question 6

The accounts receivable turnover is calculated by:

Accepted Answer

A)  Dividing net sales by average accounts receivable.
B)  Dividing net sales by average accounts receivable and multiplying by 365.
C)  Dividing average accounts receivable by net sales.
D)  Dividing average accounts receivable by net sales and multiplying by 365.
E)  Dividing net income by average accounts receivable.F) All of the above
G) A) and C)

Question 7

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee.The journal entry to record this transaction would include a:

Accepted Answer

A)  Debit to Cash of $45,000,a debit to Factoring Fee Expense of $1,800,and a credit to Accounts Receivable of $46,800.
B)  Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
C)  Debit to Cash of $43,200,a debit to Factoring Fee Expense of $1,800,and a credit to Accounts Receivable of $45,000.
D)  Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.
E)  Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.F) B) and C)
G) A) and C)

Question 8

Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31,of the current year,balance sheet.2.Prepare the adjusting journal entry to record bad debts expense for the current year.

Accepted Answer

The answer of Calculate the amount of the Allowance for...

Question 9

Honoring a note receivable indicates that the maker has:

Accepted Answer

A)  Signed.
B)  Paid in full.
C)  Guaranteed.
D)  Notarized.
E)  Cosigned.F) A) and E)
G) A) and B)

Question 10

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

Accepted Answer

A)  A cash equivalent.
B)  An account receivable.
C)  A note receivable.
D)  A short-term investment.
E)  A note payable.F) A) and C)
G) C) and D)

Question 11

The accounts receivable turnover is calculated by dividing _________________ by ________________.
answers need to appear in this order

Accepted Answer

net sales ...

Question 12

A company has the following unadjusted account balances at December 31,of the current year;Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance).The company uses the aging of accounts receivable to estimate its bad debts.The following aging schedule reflects its accounts receivable at the current year-end:

Accepted Answer

The answer of A company has the following unadjusted account...

Question 13

A 90-day note issued on April 10 matures on:

Accepted Answer

A)  July 9.
B)  July 10.
C)  July 11.
D)  July 12.
E)  July 13.F) D) and E)
G) B) and E)

Question 14

____________________ is the charge for using borrowed money until its due date.

Accepted Answer

The answer of ____________________ is the charge for using borrowed...

Question 15

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on January 15 of the next year when the note is paid?

Accepted Answer

A)  Debit Notes Receivable $4,800;debit Interest Receivable $120;credit Sales $4,920.
B)  Debit Cash $4,920;credit Notes Receivable $4,920.
C)  Debit Cash $4,920;credit Interest Revenue $100;credit Interest Receivable $20;credit Notes Receivable $4,800.
D)  Debit Cash $4,920;credit Interest Revenue $20;credit Interest Receivable $100;credit Notes Receivable $4,800.
E)  Debit Cash $4,920;credit Interest Revenue $120;credit Notes Receivable $4,800.F) A) and B)
G) A) and C)

Question 16

Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2) reports accounts receivable at the estimated amount of cash to be collected?

Accepted Answer

A)  Allowance method of accounting for bad debts.
B)  Aging of notes receivable.
C)  Adjustment method for uncollectible debts.
D)  Direct write-off method of accounting for bad debts.
E)  Cash basis method of accounting for bad debts.F) C) and E)
G) B) and C)

Question 17

On December 31 of the current year,the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable,debit balance of $95,250;Allowance for Doubtful Accounts,credit balance of $921.What amount should be debited to Bad Debts Expense,assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?

Accepted Answer

A)  $5,715.
B)  $6,636.
C)  $4,794.
D)  $5,770.
E)  $5,660.F) B) and E)
G) A) and E)

Exam 9: Accounting for Receivables

The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable.During the current year,the following transactions occurred:

Correct Answer
verified

The interest accrued on $7,500 at 6% for 90 days is:

Correct Answer
verified

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee.The journal entry to record this transaction would include a:

Correct Answer
verified

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

Correct Answer
verified

Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2) reports accounts receivable at the estimated amount of cash to be collected?

Correct Answer
verified

Correct Answer
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Honoring a note receivable indicates that the maker has:

Correct Answer
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The accounts receivable turnover is calculated by dividing _ by . answers need to appear in this order

Correct Answer
verified
net sales ...
View Answer

The ____________________ of a note is the day the principle plus interest of a note must be repaid.

Correct Answer
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The accounts receivable turnover is calculated by:

Correct Answer
verified

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on January 15 of the next year when the note is paid?

Correct Answer
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Correct Answer
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____________________ is the charge for using borrowed money until its due date.

Correct Answer
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Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31,of the current year,balance sheet.2.Prepare the adjusting journal entry to record bad debts expense for the current year.

Correct Answer
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A 90-day note issued on April 10 matures on:

Correct Answer
verified

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day,6% promissory note for the $4,000.Food Supplier's journal entry to record the sales transaction is:

Correct Answer
verified

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa Studios signed a 60-day,10% promissory note for $7,800.If the note is dishonored,what is the amount due on the note?

Correct Answer
verified

Exam 9: Accounting for Receivables

The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable.During the current year,the following transactions occurred:

Correct AnswerverifiedShow Answer

The interest accrued on $7,500 at 6% for 90 days is:

Correct AnswerverifiedShow Answer

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee.The journal entry to record this transaction would include a:

Correct AnswerverifiedShow Answer

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

Correct AnswerverifiedShow Answer

Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2) reports accounts receivable at the estimated amount of cash to be collected?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Honoring a note receivable indicates that the maker has:

Correct AnswerverifiedShow Answer

The accounts receivable turnover is calculated by dividing _________________ by ________________. answers need to appear in this order

Correct Answerverifiednet sales ...View AnswerShow Answer

The ____________________ of a note is the day the principle plus interest of a note must be repaid.

Correct AnswerverifiedShow Answer

The accounts receivable turnover is calculated by:

Correct AnswerverifiedShow Answer

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on January 15 of the next year when the note is paid?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

____________________ is the charge for using borrowed money until its due date.

Correct AnswerverifiedShow Answer

Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31,of the current year,balance sheet.2.Prepare the adjusting journal entry to record bad debts expense for the current year.

Correct AnswerverifiedShow Answer

A 90-day note issued on April 10 matures on:

Correct AnswerverifiedShow Answer

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day,6% promissory note for the $4,000.Food Supplier's journal entry to record the sales transaction is:

Correct AnswerverifiedShow Answer

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa Studios signed a 60-day,10% promissory note for $7,800.If the note is dishonored,what is the amount due on the note?

Correct AnswerverifiedShow Answer

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The accounts receivable turnover is calculated by dividing _ by . answers need to appear in this order

Correct Answer
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net sales ...
View Answer

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