Exam 9: Accounting for Receivables

Yellowstone Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred. Jan. 15 Made Yellowstone credit card sales totaling $28000. (There were no balances prior to January 15.) 20 Made Visa credit card sales (service charge fee 3%) totaling $5000. Feb. 10 Collected $17000 on Yellowstone credit card sales. 15 Added finance charges of 1% to Yellowstone credit card balance. Instructions (a) Journalize the transactions for Yellowstone Stores. (b) Indicate the statement presentation of the interest revenue and the credit card service charge expense for Yellowstone Stores.

Which permits partial derecognition of receivables? GAAP IFRS A) yes no B) yes yes C) no no D) no yes

In recording the sale of accounts receivable the commission charged by a factor is recorded as

The best managed companies will have

An analysis and aging of the accounts receivable of Downs Company at December 31 revealed the following data: Accounts Receivable \8 00,000 Allowance for Doubtful Accounts per books before adjustment (Cr.) 50,000 Amounts expected to become uncollectible 53,000 The cash realizable value of the accounts receivable at December 31 after adjustment is:

Using the percentage-of-receivables basis the uncollectible accounts for the year is estimated to be $33000. If the balance for the Allowance for Doubtful Accounts is a $5000 credit before adjustment what is the amount of bad debt expense for the period?

When a note receivable is honored Cash is debited for the note's

Using the following information: Accounts receivable \ 525,000 Allowance Cash realizable value - During 2016 sales on account were $145000 and collections on account were $100000. Also during 2016 the company wrote off $5000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45000. The change in the cash realizable value from the balance at 12/31/15 to 12/31/16 was a

A note receivable is a written promise by the maker to the payee to pay a specified amount of money at a definite time.

Which boards believe that financial statements would be more understandable if companies reported all financial statements at fair value?

Jere Retailers accepted $57000 of Maxibank Visa credit card charges for merchandise sold on July 1. Maxibank charges 3% for its credit card use. The entry to record this transaction by Jere Retailers will include a credit to Sales Revenue of $57000 and a debit(s) to

The maturity date of a 1-month note receivable dated June 30 is July 30.

Management can choose between two bases in calculating the estimated uncollectible accounts under the allowance method. One basis emphasizes an income statement viewpoint whereas the other emphasizes a balance sheet viewpoint. Identify the two bases and contrast the two approaches. How do the different points of view affect the amount recognized as Bad Debt Expense during the accounting period?

Which of the following are also called trade receivables?

Homeplate sells softball equipment. On November 14 they shipped $4000 worth of softball uniforms to Bonita Middle School terms 2/10 n/30. On November 21 they received an order from Vista High School for $1500 worth of custom printed bats to be produced in December. On November 30 Bonita Middle School returned $200 of defective merchandise. Homeplate has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?

Bad Debt Expense is considered

In reviewing the accounts receivable the cash realizable value is $14000 before the write-off of a $1800 account. What is the cash realizable value after the write-off?

When a note is accepted to settle an open account Notes Receivable is debited for the note's

Prepare the necessary journal entry for the following transaction. Linton Company sold $270000 of its accounts receivables to a factor. The factor charges a 3% fee.