Question 1

A maker who dishonors a note is one who does not pay it at maturity.

Accepted Answer

A) True 
 B)False

Question 2

At December 31,Warren Company reports the following results for its calendar year from the adjusted trial balance.
   a.Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.1% of credit sales.
b.Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be .8% of total sales.
c.Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7.0% of year-end accounts receivable.

Accepted Answer

@#IMG-DLM& $2,100,000 * .011 = $23,100

Question 3

The ____________________ of a note is the day the principle plus interest of a note must be repaid.

Accepted Answer

The answer of The ____________________ of a note is the...

Question 4

Under the allowance method of accounting for uncollectible accounts receivable,no attempt is made to estimate bad debts expense.

Accepted Answer

A) True 
 B)False

Question 5

Explain how to record the receipt of a note receivable.

Accepted Answer

The receipt of a note receivable is reco

Question 6

The maturity date of a note refers to the date the note must be repaid.

Accepted Answer

A) True 
 B)False

Question 7

As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.

Accepted Answer

A) True 
 B)False

Question 8

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800,90-day,10% note.What entry should TechCom make on December 31,to record the accrued interest on the note?

Accepted Answer

A) Debit Cash $20; credit Notes Receivable $20. 
B) Debit Cash $100; credit Notes Receivable $100 
C) Debit Interest Receivable $20; credit Interest Revenue $20. 
D) Debit Interest Receivable $100; credit Interest Revenue $100. 
E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20. 
A) Debit Cash $20; credit Notes Receivable $20. 
B) Debit Cash $100; credit Notes Receivable $100 
C) Debit Interest Receivable $20; credit Interest Revenue $20. 
D) Debit Interest Receivable $100; credit Interest Revenue $100. 
E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.

Question 9

_______________ refers to the expected proceeds from converting an asset into cash.

Accepted Answer

The answer of _______________ refers to the expected proceeds from...

Question 10

When using the allowance method of accounting for uncollectible accounts,the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense.

Accepted Answer

A) True 
 B)False

Question 11

If a customer owes interest on accounts receivable,Interest Revenue is debited and Accounts Receivable is credited.

Accepted Answer

A) True 
 B)False

Question 12

The maturity date of a note receivable:

Accepted Answer

A) Is the day of the credit sale. 
B) Is the day the note was signed. 
C) Is the day the note is due to be repaid. 
D) Is the date of the first payment. 
E) Is the last day of the month. 
A) Is the day of the credit sale. 
B) Is the day the note was signed. 
C) Is the day the note is due to be repaid. 
D) Is the date of the first payment. 
E) Is the last day of the month.

Question 13

A company has net sales of $900,000 and average accounts receivable of $300,000.What is its accounts receivable turnover for the period?

Accepted Answer

A) 0.20. 
B) 5.00 
C) 20.0 
D) 73.0 
E) 3.0 
A) 0.20. 
B) 5.00 
C) 20.0 
D) 73.0 
E) 3.0

Question 14

A company factored $35,000 of its accounts receivable and was charged a 2% factoring fee.The journal entry to record this transaction would include a debit to Cash of $35,000,a debit to Factoring Fee Expense of $700,and credit to Accounts Receivable of $35,700.

Accepted Answer

A) True 
 B)False

Question 15

The following series of transactions occurred during Year 1 and Year 2,when Linwood
Co.sold merchandise to John Moore.Linwood's annual accounting period ends on December
31.
10/01/Yr 1 Sold $12,000 of merchandise to John Moore,terms 2/10,n/30.
11/15/Yr 1 Moore reports that he cannot pay the account until early next year.He agrees to exchange the account for a 120-day,12% note receivable.
12/31/Yr 1 Prepared the adjusting journal entry to record accrued interest on the note.
03/15/Yr 2 Linwood receives a check from Moore for the maturity value (with interest)of the note.
03/22/Yr 2 Linwood receives notification that Moore's check is being returned for nonsufficient funds (NSF).
12/31/Yr 2 Linwood writes off Moore's account as uncollectible.
Prepare Linwood Co.'s journal entries to record the above transactions.The company uses the
allowance method to account for its bad debt expense.

Accepted Answer

The answer of The following series of transactions occurred during...

Question 16

A company uses the aging of accounts receivable method to estimate its bad debts expense.On December 31 of the current year an aging analysis of accounts receivable revealed the following:
Required:
a.Calculate the amount of the Allowance for Doubtful Accounts that should be reported on the current year-end balance sheet.
b.Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement,assuming that the balance of the Allowance for Doubtful Accounts on January 1 of the current year was $44,000 and that accounts receivable written off during the current year totaled $49,200.
c.Prepare the adjusting entry to record bad debts expense on December 31 of the current year.
d.Show how Accounts Receivable will appear on the current year-end balance sheet as of December 31.

Accepted Answer

The answer of A company uses the aging of accounts...

Question 17

Calculate the amount of interest that would be owed on a $9,000,60-day,9% note receivable at maturity.

Accepted Answer

$9,000 * .

Question 18

When the maker of a note honors a note this indicates that the note is:

Accepted Answer

A) Signed. 
B) Paid in full. 
C) Guaranteed. 
D) Notarized. 
E) Cosigned. 
A) Signed. 
B) Paid in full. 
C) Guaranteed. 
D) Notarized. 
E) Cosigned.

Question 19

TechCom's customer,RDA,paid off an $8,300 balance on its account receivable.TechCom should record the transaction as a debit to Accounts Receivable-RDA and a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 20

A promissory note received from a customer in exchange for an account receivable:

Accepted Answer

A) Is a cash equivalent for the recipient. 
B) Is an account receivable for the recipient. 
C) Is a note receivable for the recipient. 
D) Is a short-term investment for the recipient. 
E) Is a note payable for the recipient. 
A) Is a cash equivalent for the recipient. 
B) Is an account receivable for the recipient. 
C) Is a note receivable for the recipient. 
D) Is a short-term investment for the recipient. 
E) Is a note payable for the recipient.

Exam 9: Accounting for Receivables

A maker who dishonors a note is one who does not pay it at maturity.

The ____________________ of a note is the day the principle plus interest of a note must be repaid.

Under the allowance method of accounting for uncollectible accounts receivable,no attempt is made to estimate bad debts expense.

Explain how to record the receipt of a note receivable.

The maturity date of a note refers to the date the note must be repaid.

As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800,90-day,10% note.What entry should TechCom make on December 31,to record the accrued interest on the note?

_______________ refers to the expected proceeds from converting an asset into cash.

When using the allowance method of accounting for uncollectible accounts,the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense.

If a customer owes interest on accounts receivable,Interest Revenue is debited and Accounts Receivable is credited.

The maturity date of a note receivable:

A company has net sales of $900,000 and average accounts receivable of $300,000.What is its accounts receivable turnover for the period?

A company factored $35,000 of its accounts receivable and was charged a 2% factoring fee.The journal entry to record this transaction would include a debit to Cash of $35,000,a debit to Factoring Fee Expense of $700,and credit to Accounts Receivable of $35,700.

Calculate the amount of interest that would be owed on a $9,000,60-day,9% note receivable at maturity.

When the maker of a note honors a note this indicates that the note is:

TechCom's customer,RDA,paid off an $8,300 balance on its account receivable.TechCom should record the transaction as a debit to Accounts Receivable-RDA and a credit to Cash.

A promissory note received from a customer in exchange for an account receivable:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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