Question 1

On September 1, 2012, Kelly Company lent $2,400 to Tim on a 6-month 8% promissory note. The journal entry to record the note for Kelly would be __________.

Accepted Answer

Debit Note Receivabl

Question 2

What type of account is Allowance for Doubtful accounts?

Accepted Answer

A)  Asset 
B)  Contra-asset 
C)  Liability 
D)  Expense 
E)  Contra-sales 
A)  Asset 
B)  Contra-asset 
C)  Liability 
D)  Expense 
E)  Contra-sales

Question 3

Taymon Company has given you the following information from its aging of accounts receivable. Using
this information, what is the journal entry to record the periodic adjustment for bad debts? Assume the amount in the allowance for doubtful accounts is $$850 credit.

Accepted Answer

(2% x $24,400) + (8% x $7,350)

Question 4

Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent):

Accepted Answer

The answer of Using a 360-day year, the maturity value...

Question 5

Mike Company has cash of $56,000; net accounts receivable of $67,000; short-term investments of $12,000; and inventory of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term liabilities. What is the quick ratio for Mike Company ?

Accepted Answer

$(56,000 +

Question 6

Accounts receivable turnover measures the ability to collect cash from a company's credit customers.

Accepted Answer

A) True 
 B)False

Question 7

What are the most desirable form of sales?

Accepted Answer

The answer of What are the most desirable form of...

Question 8

A company with an accounts receivable turnover of 11.78 would be collecting its receivables about __________.

Accepted Answer

The answer of A company with an accounts receivable turnover...

Question 9

Assume that at December 31, 2013, Alyson Corporation has an Accounts Receivable balance of $240,000 and its Allowance for Doubtful Accounts balance is $13,900. Prepare a partial Balance Sheet showing the Accounts Receivable section.

Accepted Answer

Alyson's Corporation

Question 10

Using a 365-day year, what is the maturity value of a 55-day, 7% note for $23,000 rounded to the nearest cent?

Accepted Answer

The answer of Using a 365-day year, what is the...

Question 11

What account is credited in the Allowance method of recording uncollectible accounts when an uncollectible customer account is written off?

Accepted Answer

Accounts R

Question 12

If a company has 90-day credit terms, what would you expect its accounts receivable turnover to be?

Accepted Answer

The answer of If a company has 90-day credit terms,...

Question 13

What are the most common credit cards issued by financial institutions?

Accepted Answer

The answer of What are the most common credit cards...

Question 14

A company with a quick ratio of 1.23 means that the company:

Accepted Answer

A)  has $1.00 in quick assets for every $1.23 in current liabilities. 
B)  has $1.23 in quick assets for every $1.00 in current liabilities. 
C)  could not pay off all of its current liabilities using quick assets. 
D)  would have to use inventory to help pay off its current liabilities. 
E)  has $1.23 in current assets for every $1.00 in current liabilities. 
A)  has $1.00 in quick assets for every $1.23 in current liabilities. 
B)  has $1.23 in quick assets for every $1.00 in current liabilities. 
C)  could not pay off all of its current liabilities using quick assets. 
D)  would have to use inventory to help pay off its current liabilities. 
E)  has $1.23 in current assets for every $1.00 in current liabilities.

Question 15

A company has $295,000 in credit sales. The company uses the allowance method of determining Bad Debts Expense. The Allowance for Doubtful Accounts now has a $250 debit balance. The company uses the allowance method based on 6% of credit sales. What will be the amount of the Bad Debts Expense and what is the journal entry?

Accepted Answer

6% x $295,000 = $17,700
Debit

Question 16

Brandon Company completed an aging of their accounts receivable and came up with an estimated
amount of $6,342. The credit sales for the period are $85,000. The balance in the Allowance for Doubtful Accounts is a debit of $817. If Brandon uses 5% of credit sales as their estimating uncollectible accounts, how much will the credit be to the Allowance for Doubtful Accounts if Brandon uses the percentage of credit sales as its method of estimating uncollectible accounts?

Accepted Answer

5% x $85,0

Question 17

Which is NOT a benefit to extending credit to customers?

Accepted Answer

A)  Bad debt expenses 
B)  Increased revenues 
C)  Increased profits 
D)  Wider range of customers 
E)  Additional customers 
A)  Bad debt expenses 
B)  Increased revenues 
C)  Increased profits 
D)  Wider range of customers 
E)  Additional customers

Question 18

The period-end adjusting entry for Bad Debts Expense under the direct write-off method is:

Accepted Answer

A)  debit Bad Debts Expense; credit Allowance for Doubtful Accounts. 
B)  not required. 
C)  debit Cash; credit Accounts Receivable/customer name. 
D)  debit Bad Debts Expense; credit Accounts Receivable/customer name. 
E)  debit Bad Debts Expense; credit Sales Revenue. 
A)  debit Bad Debts Expense; credit Allowance for Doubtful Accounts. 
B)  not required. 
C)  debit Cash; credit Accounts Receivable/customer name. 
D)  debit Bad Debts Expense; credit Accounts Receivable/customer name. 
E)  debit Bad Debts Expense; credit Sales Revenue.

Question 19

The account receivable turnover is computed by taking the average net accounts receivable and dividing by the net credit sales.

Accepted Answer

A) True 
 B)False

Question 20

A retailer has 3% credit/debit card service fees deducted from the proceeds from each sale. The retailer has $1,700 in sales for the day. The journal entry to record these sales would be __________.

Accepted Answer

Debit Cash for $1,64

On September 1, 2012, Kelly Company lent $2,400 to Tim on a 6-month 8% promissory note. The journal entry to record the note for Kelly would be __________.

What type of account is Allowance for Doubtful accounts?

Taymon Company has given you the following information from its aging of accounts receivable. Using this information, what is the journal entry to record the periodic adjustment for bad debts? Assume the amount in the allowance for doubtful accounts is $$850 credit.

Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent):

Mike Company has cash of $56,000; net accounts receivable of $67,000; short-term investments of $12,000; and inventory of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term liabilities. What is the quick ratio for Mike Company ?

Accounts receivable turnover measures the ability to collect cash from a company's credit customers.

What are the most desirable form of sales?

A company with an accounts receivable turnover of 11.78 would be collecting its receivables about __________.

Assume that at December 31, 2013, Alyson Corporation has an Accounts Receivable balance of $240,000 and its Allowance for Doubtful Accounts balance is $13,900. Prepare a partial Balance Sheet showing the Accounts Receivable section.

Using a 365-day year, what is the maturity value of a 55-day, 7% note for $23,000 rounded to the nearest cent?

What account is credited in the Allowance method of recording uncollectible accounts when an uncollectible customer account is written off?

If a company has 90-day credit terms, what would you expect its accounts receivable turnover to be?

What are the most common credit cards issued by financial institutions?

A company with a quick ratio of 1.23 means that the company:

Which is NOT a benefit to extending credit to customers?

The period-end adjusting entry for Bad Debts Expense under the direct write-off method is:

The account receivable turnover is computed by taking the average net accounts receivable and dividing by the net credit sales.

A retailer has 3% credit/debit card service fees deducted from the proceeds from each sale. The retailer has $1,700 in sales for the day. The journal entry to record these sales would be __________.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 7: Sales and Receivables

On September 1, 2012, Kelly Company lent $2,400 to Tim on a 6-month 8% promissory note. The journal entry to record the note for Kelly would be __________.

What type of account is Allowance for Doubtful accounts?

Taymon Company has given you the following information from its aging of accounts receivable. Using this information, what is the journal entry to record the periodic adjustment for bad debts? Assume the amount in the allowance for doubtful accounts is $$850 credit.

Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent):

Mike Company has cash of $56,000; net accounts receivable of $67,000; short-term investments of $12,000; and inventory of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term liabilities. What is the quick ratio for Mike Company ?

Accounts receivable turnover measures the ability to collect cash from a company's credit customers.

What are the most desirable form of sales?

A company with an accounts receivable turnover of 11.78 would be collecting its receivables about __________.

Assume that at December 31, 2013, Alyson Corporation has an Accounts Receivable balance of $240,000 and its Allowance for Doubtful Accounts balance is $13,900. Prepare a partial Balance Sheet showing the Accounts Receivable section.

Using a 365-day year, what is the maturity value of a 55-day, 7% note for $23,000 rounded to the nearest cent?

What account is credited in the Allowance method of recording uncollectible accounts when an uncollectible customer account is written off?

If a company has 90-day credit terms, what would you expect its accounts receivable turnover to be?

What are the most common credit cards issued by financial institutions?

A company with a quick ratio of 1.23 means that the company:

Which is NOT a benefit to extending credit to customers?

The period-end adjusting entry for Bad Debts Expense under the direct write-off method is:

The account receivable turnover is computed by taking the average net accounts receivable and dividing by the net credit sales.

A retailer has 3% credit/debit card service fees deducted from the proceeds from each sale. The retailer has $1,700 in sales for the day. The journal entry to record these sales would be __________.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters