FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Accounting for Receivables

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

Companies can report credit card expense as a discount deducted from sales or as a selling expense.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Failure by a promissory notes' maker to pay the amount due at maturity is known as:

A) Protesting a note.
B) Closing a note.
C) Dishonoring a note.
D) Discounting a note.
E) Depreciating a note.

F) B) and E)
G) A) and B)

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

A dishonored note receivable is usually reclassified as an account receivable.

A payee of a note always honors a note and pays it in full.

The percent of sales method of estimating bad debts is focused more on realizable value of accounts receivable than matching.

A company receives a 10%,90-day note for $1,500.The total interest due on the maturity date is:

Myrex Corporation purchased $4,000 in merchandise from TechCom.Myrex signed a 60-day,10%,$4,000 promissory note.TechCom should record the sale with a journal entry debiting ____________________ for $ ________ and crediting __________________ for $ ________.

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

Each December 31,Davis Company ages its accounts receivable to determine the amount of its adjustment for bad debts.At the end of the current year,management estimated that $16,900 of the accounts receivable balances would be uncollectible.The Allowance for Doubtful Accounts account had a debit balance of $3,200 before any year-end adjustment for bad debts.Prepare the adjusting journal entry that Davis Company should make on December 31,of the current year,to estimate bad debts expense.

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

The account receivable turnover measures:

A company reports the following results in its financial statements: Calculate the company accounts receivable turnover for Year 2 and Year 3.Compare these two results and give a possible explanation for any significant change.

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 is the:

The person who signs a note receivable and promises to pay the principal and interest is the:

On September 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on September 1 to record the write-off assuming the company uses the allowance method?

What areas related to accounts receivable management do business owners need to pay attention to?

On August 9,Pierce Company receives a $8,500,90-day,8% note from customer Eric Simms as payment on his account.Compute the maturity date for the note.

What is the amount of interest that is due on a $36,000,90-day,4% note receivable at maturity?

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

On April 30,Steinbeck Co.has $448,800 of accounts receivable.1.Prepare journal entries to record the following selected May transactions.The company uses the perpetual inventory system.2.Also prepare any footnotes to the May 31 financial statements that result from these transactions.3.Calculate the balance in the Accounts Receivable account as of May 10.