The following selected transactions occurred during 2019 for Northwest Movers.The company ends it accounting year on December 31. $\begin{array}{|l|l|} \hline \text { Apr. } 1 & \text { Performed services on account for Ellison Rentals, } \$ 12,000 . \\ \hline & \text { Received a } \$ 12,000,3 \text { month, } 9 \% \text { note from Ellison in } \\ \text { Aug. } 1 & \text { Fatisfaction of its past-due account receivable. } \\ \hline \text { Nov. } 1 & \text { Collected the Ellison note at maturity }\\ \hline \end{array}$ Prepare the journal entries to record these transactions.Omit explanations.

\[\begin{array} { | l | l | r | r | } \

The following information is from the 2019 records of Albert Book Shop: \[\begin{array} { | l | l | } \hline \text { Accounts receivable, December 31, 2019 } & \$ 45,000 \text { (debit) } \\ \hline \text { Allowance for Bad Debts, December 31,2019 prior to adjustment } & 1700 \text { (debit) } \\ \hline \text { Net credit sales for } 2019 & 177,000 \\ \hline \text { Accounts written off as uncollectible during 2017 } & 20,000 \\ \hline \text { Cash sales during 2019 } & 29,500 \\ \hline \end{array}\] Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5200 of accounts receivable will be uncollectible.Calculate the amount of bad debts expense for 2019.

A) $4300 B) $6900 C) $3500 D) $5450 A) $4300 B) $6900 C) $3500 D) $5450

The following information is from the records of Mountainview Camera Shop: \[\begin{array} { | l | l | } \hline \text { Accounts receivable, December 31, 2018 } & \$ 81,000 \text { (debit) } \\ \hline \text { Net credit sales for 2018 } & 161,000 \\ \hline \text { Accounts written off as uncollectible during 2018 } & 15,000 \\ \hline \text { Cash sales during 2018 } & 45,000 \\ \hline \end{array}\] The company uses the direct write-off method for bad debts.What is the amount of bad debts expense?

A) $81,000 B) $45,000 C) $65,000 D) $15,000 A) $81,000 B) $45,000 C) $65,000 D) $15,000

Exam 9: Receivables

Bad Debt Expense is not debited when a company writes off an account receivable when using the allowance method because the company has already recorded the Bad Debt Expense as an adjusting entry.

(True/False)

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Question 121

The payment terms for a note receivable are generally longer than that of an account receivable.

(True/False)

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Question 122

A newly created design business,Teri's Art,is finishing its first year of operations.During the year,credit sales were $43,000 and collections of credit sales were $35,000.One account for $600 was written off.Teri's Art uses the aging-of-receivables method to account for bad debts expense.It has estimated $275 as uncollectible at year-end.What is the amount of the Bad Debts Expense for the first year of operations?

(Multiple Choice)

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Question 123

Fleet Transportation is a new business.During its first year of operations,credit sales were $40,000 and collections of credit sales were $36,000.One account,$650,was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible.Prepare the entry to record bad debts expense.Omit explanation.

(Essay)

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Question 124

Accounts Receivable has a balance of $4000,and the Allowance for Bad Debts has a credit balance of $430.The allowance method is used.What is the net realizable value of Accounts Receivable after a $170 account receivable is written off?

(Multiple Choice)

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Question 125

By accepting credit and debit cards,companies are able to attract more customers.

(True/False)

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Question 126

The acid-test ratio is also known as the quick ratio.

(True/False)

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Question 127

Companies should not sell merchandise in exchange for notes receivable.

(True/False)

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Question 128

The following selected transactions occurred during 2019 for Northwest Movers.The company ends it accounting year on December 31. Apr. 1 Performed services on account for Ellison Rentals, \ 12,000. Received a \ 12,000,3 month, 9\% note from Ellison in Aug. 1 Fatisfaction of its past-due account receivable. Nov. 1 Collected the Ellison note at maturity Prepare the journal entries to record these transactions.Omit explanations.

(Essay)

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Question 129

Accounts receivable are also called trade receivables.

(True/False)

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Question 130

The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method,the company's management estimates that uncollectible accounts will be $15,000.What will be the amount of Bad Debts Expense reported on the income statement?

(Multiple Choice)

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Question 131

The following information is from the 2019 records of Albert Book Shop: Accounts receivable, December 31, 2019 \ 45,000 (debit) Allowance for Bad Debts, December 31,2019 prior to adjustment 1700 (debit) Net credit sales for 2019 177,000 Accounts written off as uncollectible during 2017 20,000 Cash sales during 2019 29,500 Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5200 of accounts receivable will be uncollectible.Calculate the amount of bad debts expense for 2019.

(Multiple Choice)

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Question 132

The Allowance for Bad Debts is a contra account to Accounts Receivable.

(True/False)

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Question 133

Which of the following would be included in the entry by the payee to record a dishonored note receivable?

(Multiple Choice)

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Question 134

The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 \ 81,000 (debit) Net credit sales for 2018 161,000 Accounts written off as uncollectible during 2018 15,000 Cash sales during 2018 45,000 The company uses the direct write-off method for bad debts.What is the amount of bad debts expense?

(Multiple Choice)

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Question 135

On October 1,2019,Island Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.Interest revenue was accrued through December 31,2019.Island receives the maturity value of the note at maturity.Prepare the journal entry to record the collection.Omit explanation.

(Essay)

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Question 136

At the beginning of 2019,Gourmet Cupcakes Company has the following ledger balances: Accounts Receivable $45,000 (Debit) Allowance for Bad Debts $6000 (Credit) During the year,credit sales amounted to $820,000.Cash collected on credit sales amounted to $780,000,and $18,000 has been written off.Gourmet Cupcakes uses the aging-of-receivables method to record bad debts expense.The estimate of uncollectible accounts was $28,000.The ending balance in the Allowance for Bad Debts is ________.

(Multiple Choice)

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Question 137

The accounts receivable turnover ratio for a merchandiser is 9.7 times.Calculate the days' sales in receivables for the merchandiser.(Use 365 days in calculations as needed.Round your answer to the nearest day.)

(Multiple Choice)

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Question 138

If a customer makes payment on a receivable that has already been written off,the receivable account is reestablished.

(True/False)

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Question 139

A business that accepts payments by credit and debit cards ________.

(Multiple Choice)

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Question 140

Showing 121 - 140 of 233

Bad Debt Expense is not debited when a company writes off an account receivable when using the allowance method because the company has already recorded the Bad Debt Expense as an adjusting entry.

The payment terms for a note receivable are generally longer than that of an account receivable.

Accounts Receivable has a balance of $4000,and the Allowance for Bad Debts has a credit balance of $430.The allowance method is used.What is the net realizable value of Accounts Receivable after a $170 account receivable is written off?

By accepting credit and debit cards,companies are able to attract more customers.

The acid-test ratio is also known as the quick ratio.

Companies should not sell merchandise in exchange for notes receivable.

Accounts receivable are also called trade receivables.

The Allowance for Bad Debts is a contra account to Accounts Receivable.

Which of the following would be included in the entry by the payee to record a dishonored note receivable?

The accounts receivable turnover ratio for a merchandiser is 9.7 times.Calculate the days' sales in receivables for the merchandiser.(Use 365 days in calculations as needed.Round your answer to the nearest day.)

If a customer makes payment on a receivable that has already been written off,the receivable account is reestablished.

A business that accepts payments by credit and debit cards ________.

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