Question 1

Notes receivable are recognized in the accounts at

Accepted Answer

A)  cash (net) realizable value. 
B)  face value. 
C)  gross realizable value. 
D)  maturity value. 
A)  cash (net) realizable value. 
B)  face value. 
C)  gross realizable value. 
D)  maturity value.

Question 2

The average collection period for receivables 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 ratio. 
A)  net credit sales. 
B)  average accounts receivable. 
C)  ending accounts receivable. 
D)  accounts receivable turnover ratio.

Question 3

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 4

On March 9, Fillmore gave Camp Company a 60-day, 12% promissory note for $3,200. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.

Accepted Answer

The answer of On March 9, Fillmore gave Camp Company...

Question 5

Patel Co. sells Christmas angels. Patel determines that at the end of December, it has the following aging schedule of Accounts Receivable:   
Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Accepted Answer

@#IMG-DLM& Net Recei

Question 6

When the allowance method of accounting for uncollectible accounts is used, Bad Debts Expense is recorded

Accepted Answer

A)  in the year after the credit sale is made. 
B)  in the same year as the credit sale. 
C)  as each credit sale is made. 
D)  when an account is written off as uncollectible. 
A)  in the year after the credit sale is made. 
B)  in the same year as the credit sale. 
C)  as each credit sale is made. 
D)  when an account is written off as uncollectible.

Question 7

A finance company or bank that purchases receivables from businesses is known as a ______________.

Accepted Answer

The answer of A finance company or bank that purchases...

Question 8

Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

An alternative name for Bad Debts Expense is

Accepted Answer

A)  Deadbeat Expense. 
B)  Uncollectible Accounts Expense. 
C)  Collection Expense. 
D)  Credit Loss Expense. 
A)  Deadbeat Expense. 
B)  Uncollectible Accounts Expense. 
C)  Collection Expense. 
D)  Credit Loss Expense.

Question 11

Greig Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:

Accepted Answer

The answer of Greig Company uses the allowance method for...

Question 12

The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts

Accepted Answer

A)  is relevant when using the percentage of receivables basis. 
B)  is relevant when using the percentage of sales basis. 
C)  is relevant to both bases of adjusting for uncollectible accounts. 
D)  will never show a debit balance at this stage in the accounting cycle. 
A)  is relevant when using the percentage of receivables basis. 
B)  is relevant when using the percentage of sales basis. 
C)  is relevant to both bases of adjusting for uncollectible accounts. 
D)  will never show a debit balance at this stage in the accounting cycle.

Question 13

Longbine Company's ledger at the end of the current year shows Accounts Receivable of $150,000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 10% of accounts receivable, journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 10% of accounts receivable, journalize the adjusting entry for the end of the period.

Accepted Answer

The answer of Longbine Company's ledger at the end of...

Question 14

Which one of the following is not a primary problem associated with accounts receivable?

Accepted Answer

A)  Depreciating accounts receivable 
B)  Recognizing accounts receivable 
C)  Valuing accounts receivable 
D)  Disposing of accounts receivable 
A)  Depreciating accounts receivable 
B)  Recognizing accounts receivable 
C)  Valuing accounts receivable 
D)  Disposing of accounts receivable

Question 15

On January 15, 2010, Raymond Company received a two-month, 9%, $5,000 note from William Pentel for the settlement of his open account. The entry by Raymond Company on January 15, 2010 would include a:

Accepted Answer

A)  debit of $5,075 to Notes Receivable. 
B)  debit of $5,000 to Notes Receivable. 
C)  credit of $5,075 to Accounts Receivable. 
D)  credit of $5,000 to Notes Receivable. 
A)  debit of $5,075 to Notes Receivable. 
B)  debit of $5,000 to Notes Receivable. 
C)  credit of $5,075 to Accounts Receivable. 
D)  credit of $5,000 to Notes Receivable.

Question 16

The basic issues in accounting for notes receivable include each of the following except

Accepted Answer

A)  analyzing notes receivable. 
B)  disposing of notes receivable. 
C)  recognizing notes receivable. 
D)  valuing notes receivable. 
A)  analyzing notes receivable. 
B)  disposing of notes receivable. 
C)  recognizing notes receivable. 
D)  valuing notes receivable.

Question 17

On February 1, Platt Company received a $9,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

Accepted Answer

A)  $300. 
B)  $9,000. 
C)  $9,300. 
D)  $9,900. 
A)  $300. 
B)  $9,000. 
C)  $9,300. 
D)  $9,900.

Question 18

The percentage of sales basis for estimating uncollectible accounts always results in more Bad Debts Expense being recognized than the percentage of receivables basis.

Accepted Answer

A) True 
 B)False

Question 19

The percentage of receivables basis for estimating uncollectible accounts emphasizes

Accepted Answer

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

Question 20

When the allowance method is used to account for uncollectible accounts, the ______________ is credited when an account is determined to be uncollectible.

Accepted Answer

The answer of When the allowance method is used to...

Exam 9: Accounting for Receivables

Notes receivable are recognized in the accounts at

The average collection period for receivables is computed by dividing 365 days by

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

On March 9, Fillmore gave Camp Company a 60-day, 12% promissory note for $3,200. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.

Patel Co. sells Christmas angels. Patel determines that at the end of December, it has the following aging schedule of Accounts Receivable: Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

When the allowance method of accounting for uncollectible accounts is used, Bad Debts Expense is recorded

A finance company or bank that purchases receivables from businesses is known as a ______________.

Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible.

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

An alternative name for Bad Debts Expense is

Greig Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:

The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts

Which one of the following is not a primary problem associated with accounts receivable?

On January 15, 2010, Raymond Company received a two-month, 9%, $5,000 note from William Pentel for the settlement of his open account. The entry by Raymond Company on January 15, 2010 would include a:

The basic issues in accounting for notes receivable include each of the following except

On February 1, Platt Company received a $9,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

The percentage of sales basis for estimating uncollectible accounts always results in more Bad Debts Expense being recognized than the percentage of receivables basis.

The percentage of receivables basis for estimating uncollectible accounts emphasizes

When the allowance method is used to account for uncollectible accounts, the ______________ is credited when an account is determined to be uncollectible.

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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 Analysis: the Big Picture

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