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:

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?

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?

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?

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

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

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.

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

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:

The accounts receivable turnover is calculated by:

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

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

Honoring a note receivable indicates that the maker has:

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

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:

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:

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?