Exam 8: Receivables

Mr.Potts issued a 90-day,7% note for $200,000,dated February 3 to Valley Co.on account.Assume a 360-day year when calculating interest. a.Determine the due date of the note. b.Determine the interest. c.Determine the maturity value of the note. d.Journalize the entry to record the receipt of the note from Potts on Feb.3. e.Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

At the beginning of the year,the balance in Allowance for Doubtful Accounts is a credit of $760.During the year,$120 of previously written off accounts are reinstated and accounts totaling $740 are written-off as uncollectible.The end-of-year balance before adjustment in Allowance for Doubtful Accounts should be

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year before adjustment.The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900.Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?

If the allowance method of accounting for uncollectible receivables is used,what general ledger account is debited to write off a customer's account as uncollectible?

156. Journalize the following transactions for Lucite Company. November 14 Received a $4,800.00, 90-day, 9% note from Alan Albertson in payment of his account. December 31 Accrued interest on the Albertson note. February 12 Received the amount due from Albertson on his note.

GAAP requires companies with a large amount of receivables to use the allowance method.

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400.If Allowance for Doubtful Accounts has a $1,300 debit balance,the adjustment to record the bad debt expense for the period will require a

Lone Star Company received a 90-day,6% note for $80,000,dated March 12 from a customer on account.Assume a 360-day year when calculating interest. a.Determine the due date of the note. b.Determine the maturity value of the note. c.Journalize the entry to record the receipt of the payment of the note at maturity.

The interest on a 6%,60-day note for $5,000 is $300.

Discuss the 1 focus and 2 financial statement emphasis of a the percent of sales and b the analysis of receivables methods of estimating bad debts.

Selling receivables is called

The maturity value of a note receivable is always the same as its face value.

Journalize the following transactions of Upton Drugs: July 8 Received a $180,000,90-day,8% note dated July 8 from Miracle Chemical on account. Oct.6 The note is dishonored by Miracle Chemical. Nov.5 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Miracle Chemical on Oct.6.

When a note is written to settle an open account,no entry is necessary.

Miles uses the allowance method and wrote off the account of James.Miles then received $559 as partial payment on the account of James.The journal entry to record the initial write-off includes a

The balance in Allowance for Doubtful Accounts at the end of the year includes the total of all accounts written off since the beginning of the year.

List at least three indicators that a receivable may be uncollectible.

Discuss the similarities and differences between accounts receivable,notes receivable,and other receivables.

A note receivable due in 18 months is listed on the balance sheet under the caption

When using the percent of sales method of estimating uncollectibles the entry to record bad debt expense includes a credit to Accounts Receivable.