Question 1

When counting the exact number of days to determine the maturity date of a note, the date of issue is included but the due date is omitted.

Accepted Answer

A) True 
 B)False

Question 2

When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.

Accepted Answer

A) True 
 B)False

Question 3

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

Accepted Answer

A) $2,900 
B) $2,940 
C) $3,000 
D) $5,000 
A) $2,900 
B) $2,940 
C) $3,000 
D) $5,000

Question 4

Sales resulting from the use of Visa and MasterCard are considered credit sales by the retailer.

Accepted Answer

A) True 
 B)False

Question 5

On January 15, 2015, Craig Company received a two-month, 9%, $9,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on January 15, 2015 would include a:

Accepted Answer

A) debit of $9,135 to Notes Receivable. 
B) debit of $9,000 to Notes Receivable. 
C) credit of $9,135 to Accounts Receivable. 
D) credit of $9,000 to Notes Receivable. 
A) debit of $9,135 to Notes Receivable. 
B) debit of $9,000 to Notes Receivable. 
C) credit of $9,135 to Accounts Receivable. 
D) credit of $9,000 to Notes Receivable.

Question 6

Under the allowance method of accounting for uncollectible accounts,

Accepted Answer

A) the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. 
B) Bad Debt Expense is debited when a specific account is written off as uncollectible. 
C) the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. 
D) Allowance for Doubtful Accounts is closed each year to Income Summary. 
A) the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. 
B) Bad Debt Expense is debited when a specific account is written off as uncollectible. 
C) the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. 
D) Allowance for Doubtful Accounts is closed each year to Income Summary.

Question 7

The percentage of receivables basis for estimating uncollectible accounts emphasizes

Accepted Answer

A) cash realizable value. 
B) the relationship between accounts receivable and bad debt expense. 
C) income statement relationships. 
D) the relationship between sales and accounts receivable. 
A) cash realizable value. 
B) the relationship between accounts receivable and bad debt expense. 
C) income statement relationships. 
D) the relationship between sales and accounts receivable.

When counting the exact number of days to determine the maturity date of a note, the date of issue is included but the due date is omitted.

When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

Sales resulting from the use of Visa and MasterCard are considered credit sales by the retailer.

On January 15, 2015, Craig Company received a two-month, 9%, $9,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on January 15, 2015 would include a:

Under the allowance method of accounting for uncollectible accounts,

The percentage of receivables basis for estimating uncollectible accounts emphasizes

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 8: Accounting for Receivables

When counting the exact number of days to determine the maturity date of a note, the date of issue is included but the due date is omitted.

When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

Sales resulting from the use of Visa and MasterCard are considered credit sales by the retailer.

On January 15, 2015, Craig Company received a two-month, 9%, $9,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on January 15, 2015 would include a:

Under the allowance method of accounting for uncollectible accounts,

The percentage of receivables basis for estimating uncollectible accounts emphasizes

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters