Exam 8: Receivables

The maturity value of a 12%, 60-day note for $5,000 is $5,600.

Receivables not currently collectible are reported in the investments section of the balance sheet.

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for bad debt expense?

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?

Journalize the following transactions for the Scott Company: November 4 Received a $6,500, 90-day, 6% note from Tim's Co.in payment of the account. December 31 Accrued interest on the Tim's Co. note. February 2 Received the amount due from Tim's Co. on the note. Date Description Post. Ref. Debit Credit

In computing the maturity date of a note, the date the note is issued is included but the due date is omitted.

When a company accepts a note in settlement of a past due account, the effect on the accounting equation is

If collection of an other receivable is expected beyond one year, it is classified as a

When an account receivable that has been written off is subsequently collected, the account receivable must first be reinstated before recording the receipt of payment.

Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest.

The following information was taken from the financial records of Sodigaz, Inc. ​ The number of days' sales in receivable for Year 2 is

If the maker of a promissory note fails to pay the note on the due date, the note is said to be

Given the following information, compute accounts receivable turnover:

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

The accounts receivable turnover measures

On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of

The following information was taken from the financial records of Sodigaz, Inc. ​ The number of days' sales in receivable for Year 2 is

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

When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000. Based on this estimate, which of the following adjusting entries should be made?