Question 1

The three primary accounting problems associated with accounts receivable are (1) ______________ (2) _______________ and (3) ______________ of accounts receivable.

Accepted Answer

recognizin

Question 2

Trade accounts receivable are valued and reported on the balance sheet

Accepted Answer

A)  in the investment section. 
B)  at gross amounts less sales returns and allowances. 
C)  at net realizable value. 
D)  only if they are not past due. 
A)  in the investment section. 
B)  at gross amounts less sales returns and allowances. 
C)  at net realizable value. 
D)  only if they are not past due.

Question 3

Two methods of accounting for uncollectible accounts are the

Accepted Answer

A)  allowance method and the accrual method. 
B)  allowance method and the net realizable method. 
C)  direct write-off method and the accrual method. 
D)  direct write-off method and the allowance method. 
A)  allowance method and the accrual method. 
B)  allowance method and the net realizable method. 
C)  direct write-off method and the accrual method. 
D)  direct write-off method and the allowance method.

Question 4

Compute the maturity date and interest for the following notes. $\begin{array}{lrr}
&\text { Dates of Notes } &\text {  Terms } &\text {  Principal} &\text {   Interest Rate }\
 \hline \text {(a)  } &\text {  April } 17& 45 \text { days } &\$ 60,000 & 5 \%\\
 \text { (b) } &\text { Auqust } 11 & 2 \text { months } &90.000 &8 \%
\end{array}$

Accepted Answer

@#LAT-DLM&
(a)  @#LAT-DLM&June

Question 5

The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

Accepted Answer

A)  Notes Receivable. 
B)  Cash. 
C)  Allowance for Doubtful Accounts. 
D)  Accounts Receivable. 
A)  Notes Receivable. 
B)  Cash. 
C)  Allowance for Doubtful Accounts. 
D)  Accounts Receivable.

Question 6

Writing off an uncollectible account under the allowance method requires a debit to

Accepted Answer

A)  Accounts Receivable. 
B)  Allowance for Doubtful Accounts. 
C)  Bad Debt Expense. 
D)  Uncollectible Accounts Expense. 
A)  Accounts Receivable. 
B)  Allowance for Doubtful Accounts. 
C)  Bad Debt Expense. 
D)  Uncollectible Accounts Expense.

Question 7

In order to accelerate the receipt of cash from receivables owners may sell the receivables to another company for cash.

Accepted Answer

A) True 
 B)False

Question 8

If a retailer assesses a finance charge on the amount owed by a customer Accounts Receivable is debited for the amount of the interest.

Accepted Answer

A) True 
 B)False

Question 9

Decca Distributors has the following transactions related to notes receivable during the last month of the year.
Dec. 1 Loaned $12000 cash to J. Cash on a 1-year 5% note.
16 Sold goods to W. Jennings receiving a $10000 60-day 6% note.
31 Accrued interest revenue on all notes receivable.
Instructions
Journalize the transactions for Decca Distributors.

Accepted Answer

None

Question 10

A company that receives an interest bearing note receivable will

Accepted Answer

A)  debit Notes Receivable for the maturity value of the note. 
B)  credit Notes Receivable for the maturity value of the note. 
C)  debit Notes Receivable for the face value of the note. 
D)  credit Notes Receivable for the face value of the note. 
A)  debit Notes Receivable for the maturity value of the note. 
B)  credit Notes Receivable for the maturity value of the note. 
C)  debit Notes Receivable for the face value of the note. 
D)  credit Notes Receivable for the face value of the note.

Question 11

The average collection period for accounts receivable is computed by dividing 365 days by

Accepted Answer

A)  net credit sales. 
B)  average accounts receivable. 
C)  ending accounts receivable. 
D)  accounts receivable turnover. 
A)  net credit sales. 
B)  average accounts receivable. 
C)  ending accounts receivable. 
D)  accounts receivable turnover.

Question 12

The two methods of accounting for uncollectible accounts are the ____________ method and the ______________ method.

Accepted Answer

allowance

Question 13

A note receivable is a negotiable instrument which

Accepted Answer

A)  eliminates the need for a bad debts allowance. 
B)  can be transferred to another party by endorsement. 
C)  takes the place of checks in a business firm. 
D)  can only be collected by a bank. 
A)  eliminates the need for a bad debts allowance. 
B)  can be transferred to another party by endorsement. 
C)  takes the place of checks in a business firm. 
D)  can only be collected by a bank.

Question 14

A note which is not paid on the maturity date is said to be ______________.

Accepted Answer

The answer of A note which is not paid on...

Question 15

The maturity value of a $6000 5% 60-day note receivable dated February 10th is

Accepted Answer

A)  $6000. 
B)  $6025. 
C)  $6050. 
D)  $6300. 
A)  $6000. 
B)  $6025. 
C)  $6050. 
D)  $6300.

Question 16

Compute the maturity date and the maturity value associated with each of the following notes receivables. 11eb1392_1bde_a107_8021_2d6d84b13a2a

Accepted Answer

The answer of Compute the maturity date and the maturity...

Question 17

The method of accounting for uncollectible accounts that results in a better matching of expenses with revenues is the

Accepted Answer

A)  aging accounts receivable method. 
B)  direct write-off method. 
C)  percentage of receivables method. 
D)  percentage of sales method. 
A)  aging accounts receivable method. 
B)  direct write-off method. 
C)  percentage of receivables method. 
D)  percentage of sales method.

Question 18

Compute the maturity value for each of the following notes receivable.
1. A $5000 6% 3-month note dated July 20.
Maturity value $____________.
2. A $12000 9% 150-day note dated August 5.
Maturity value $____________.

Accepted Answer

1. Maturity value: $5075
$5000

Question 19

Which board(s) has(have) faced bitter opposition when working to implement fair value measurement for financial instruments?

Accepted Answer

A)  FASB but not IASB. 
B)  IASB but not FASB. 
C)  both FASB and IASB. 
D)  neither FASB nor IASB. 
A)  FASB but not IASB. 
B)  IASB but not FASB. 
C)  both FASB and IASB. 
D)  neither FASB nor IASB.

Question 20

Morton Company had the following select transactions. Apr. $\quad $1,2016 $\quad $Accepted Remington Company's 1-year, 12 % note in $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $settlement of a $ 25,000 account receivable.
July $\quad $1,2016$\quad $ Loaned $15,000 cash to Jenny Green on a 9-month, 10 %$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $ note.
Dec. $\quad $31,2016 $\quad $Accrued interest on all notes receivable.
Apr.$\quad $ 1,2017 $\quad $Received principal plus interest on the Remington note.
Apr. $\quad $1,2017 $\quad $Jenny Green dishonored its note: Morton expects it $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $will eventually collect. Instructions
Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.

Accepted Answer

The answer of Morton Company had the following select transactions....

Exam 9: Accounting for Receivables

The three primary accounting problems associated with accounts receivable are (1) ______________ (2) _______________ and (3) ______________ of accounts receivable.

Trade accounts receivable are valued and reported on the balance sheet

Two methods of accounting for uncollectible accounts are the

Compute the maturity date and interest for the following notes. Dates of Notes Terms Principal Interest Rate (a) April 17 45 days \ 60,000 5\% (b) Auqust 11 2 months 90.000 8\%

The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

Writing off an uncollectible account under the allowance method requires a debit to

In order to accelerate the receipt of cash from receivables owners may sell the receivables to another company for cash.

If a retailer assesses a finance charge on the amount owed by a customer Accounts Receivable is debited for the amount of the interest.

A company that receives an interest bearing note receivable will

The average collection period for accounts receivable is computed by dividing 365 days by

The two methods of accounting for uncollectible accounts are the ____________ method and the ______________ method.

A note receivable is a negotiable instrument which

A note which is not paid on the maturity date is said to be ______________.

The maturity value of a $6000 5% 60-day note receivable dated February 10th is

Compute the maturity date and the maturity value associated with each of the following notes receivables. 11eb1392_1bde_a107_8021_2d6d84b13a2a

The method of accounting for uncollectible accounts that results in a better matching of expenses with revenues is the

Compute the maturity value for each of the following notes receivable. 1. A $5000 6% 3-month note dated July 20. Maturity value $____________. 2. A $12000 9% 150-day note dated August 5. Maturity value $____________.

Which board(s) has(have) faced bitter opposition when working to implement fair value measurement for financial instruments?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

The three primary accounting problems associated with accounts receivable are (1) ______ (2) _ and (3) ________ of accounts receivable.

The two methods of accounting for uncollectible accounts are the method and the __ method.

Compute the maturity value for each of the following notes receivable. 1. A $5000 6% 3-month note dated July 20. Maturity value $. 2. A $12000 9% 150-day note dated August 5. Maturity value $.