Question 1

Failure by a promissory notes' maker to pay the amount due at maturity is known as:

Accepted Answer

A) Protesting a note. 
B) Closing a note. 
C) Dishonoring a note. 
D) Discounting a note. 
E) Depreciating a note. 
A) Protesting a note. 
B) Closing a note. 
C) Dishonoring a note. 
D) Discounting a note. 
E) Depreciating a note.

Question 2

On April 30,Steinbeck Co.has $448,800 of accounts receivable.1.Prepare journal entries to record the following selected May transactions.The company uses the perpetual inventory system.2.Also prepare any footnotes to the May 31 financial statements that result from these transactions.3.Calculate the balance in the Accounts Receivable account as of May 10.

Accepted Answer

1.
 @#IMG-DLM& 2.Steinbeck should includ

Question 3

A company receives a 10%,90-day note for $1,500.The total interest due on the maturity date is:

Accepted Answer

A) $ 50.00 
B) $150.00. 
C) $ 75.00. 
D) $ 37.50. 
E) $ 87.50. 
A) $ 50.00 
B) $150.00. 
C) $ 75.00. 
D) $ 37.50. 
E) $ 87.50.

Question 4

A payee of a note always honors a note and pays it in full.

Accepted Answer

A) True 
 B)False

Question 5

What is the amount of interest that is due on a $36,000,90-day,4% note receivable at maturity?

Accepted Answer

$36,000 *

Question 6

The account receivable turnover measures:

Accepted Answer

A) How long it takes to sell accounts receivable to a factor. 
B) How often, on average, receivables are received and collected during the period. 
C) The relation of cash sales to credit sales. 
D) How long it takes to sell merchandise inventory. 
E) All of the options are correct. 
A) How long it takes to sell accounts receivable to a factor. 
B) How often, on average, receivables are received and collected during the period. 
C) The relation of cash sales to credit sales. 
D) How long it takes to sell merchandise inventory. 
E) All of the options are correct.

Question 7

What areas related to accounts receivable management do business owners need to pay attention to?

Accepted Answer

Special attention needs to be focused on

Question 8

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

Accepted Answer

The answer of Prepare general journal entries for the following...

Question 9

On September 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on September 1 to record the write-off assuming the company uses the allowance method?

Accepted Answer

A) Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. 
B) Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. 
C) Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. 
D) Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. 
E) Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. 
A) Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. 
B) Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. 
C) Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. 
D) Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. 
E) Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300.

Question 10

Myrex Corporation purchased $4,000 in merchandise from TechCom.Myrex signed a 60-day,10%,$4,000 promissory note.TechCom should record the sale with a journal entry debiting ____________________ for $ ________ and crediting __________________ for $ ________.

Accepted Answer

answers n

Question 11

On August 9,Pierce Company receives a $8,500,90-day,8% note from customer Eric Simms as payment on his account.Compute the maturity date for the note.

Accepted Answer

A) October 8 
B) October 7 
C) November 8 
D) November 7 
E) November 6 
A) October 8 
B) October 7 
C) November 8 
D) November 7 
E) November 6

Question 12

A dishonored note receivable is usually reclassified as an account receivable.

Accepted Answer

A) True 
 B)False

Question 13

Each December 31,Davis Company ages its accounts receivable to determine the amount of its adjustment for bad debts.At the end of the current year,management estimated that $16,900 of the accounts receivable balances would be uncollectible.The Allowance for Doubtful Accounts account had a debit balance of $3,200 before any year-end adjustment for bad debts.Prepare the adjusting journal entry that Davis Company should make on December 31,of the current year,to estimate bad debts expense.

Accepted Answer

The answer of Each December 31,Davis Company ages its accounts...

Question 14

The person who signs a note receivable and promises to pay the principal and interest is the:

Accepted Answer

A) Maker. 
B) Payee. 
C) Holder. 
D) Receiver. 
E) Owner. 
A) Maker. 
B) Payee. 
C) Holder. 
D) Receiver. 
E) Owner.

Question 15

An accounting procedure that (1)estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2)reports accounts receivable at the estimated amount of cash to be collected is the:

Accepted Answer

A) Allowance method of accounting for bad debts. 
B) Aging of notes receivable. 
C) Adjustment method for uncollectible debts. 
D) Direct write-off method of accounting for bad debts. 
E) Cash basis method of accounting for bad debts. 
A) Allowance method of accounting for bad debts. 
B) Aging of notes receivable. 
C) Adjustment method for uncollectible debts. 
D) Direct write-off method of accounting for bad debts. 
E) Cash basis method of accounting for bad debts.

Question 16

The percent of sales method of estimating bad debts is focused more on realizable value of accounts receivable than matching.

Accepted Answer

A) True 
 B)False

Question 17

A company reports the following results in its financial statements:
   Calculate the company accounts receivable turnover for Year 2 and Year 3.Compare these two results and give a possible explanation for any significant change.

Accepted Answer

@#IMG-DLM& The company has increased its accounts

Question 18

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

Accepted Answer

The answer of A ____________________ is a signed promise to...

Question 19

Companies can report credit card expense as a discount deducted from sales or as a selling expense.

Accepted Answer

A) True 
 B)False

Question 20

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

Accepted Answer

The answer of If a 60-day note receivable is dated...

Exam 9: Accounting for Receivables

Failure by a promissory notes' maker to pay the amount due at maturity is known as:

A company receives a 10%,90-day note for $1,500.The total interest due on the maturity date is:

A payee of a note always honors a note and pays it in full.

What is the amount of interest that is due on a $36,000,90-day,4% note receivable at maturity?

The account receivable turnover measures:

What areas related to accounts receivable management do business owners need to pay attention to?

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

On September 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on September 1 to record the write-off assuming the company uses the allowance method?

Myrex Corporation purchased $4,000 in merchandise from TechCom.Myrex signed a 60-day,10%,$4,000 promissory note.TechCom should record the sale with a journal entry debiting ____________________ for $ ________ and crediting __________________ for $ ________.

On August 9,Pierce Company receives a $8,500,90-day,8% note from customer Eric Simms as payment on his account.Compute the maturity date for the note.

A dishonored note receivable is usually reclassified as an account receivable.

The person who signs a note receivable and promises to pay the principal and interest is the:

An accounting procedure that (1)estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2)reports accounts receivable at the estimated amount of cash to be collected is the:

The percent of sales method of estimating bad debts is focused more on realizable value of accounts receivable than matching.

A company reports the following results in its financial statements: Calculate the company accounts receivable turnover for Year 2 and Year 3.Compare these two results and give a possible explanation for any significant change.

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

Companies can report credit card expense as a discount deducted from sales or as a selling expense.

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

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

Filters

Myrex Corporation purchased $4,000 in merchandise from TechCom.Myrex signed a 60-day,10%,$4,000 promissory note.TechCom should record the sale with a journal entry debiting __________ for $ and crediting for $ .