Exam 9: Receivables

A company has net credit sales of $94,000,beginning net accounts receivable of $23,000 and ending net accounts receivable of $18,000.Calculate the days' sales in receivables.(Use 365 days in calculations as needed.Round any intermediate calculations to two decimal places,and your final answer to the nearest whole day.)

A six-month note receivable for $5000 at 11%,dated October 1,2020,has accrued interest revenue of ________ as of December 31,2020.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

On January 1,2019,Triangle Company has the following account balances: Allowance for Bad Debts During the year,Triangle has $165,000 of credit sales,collections of credit sales of $143,000,and write-offs of $3000.It records bad debts expense at the end of the year using the aging-of-receivables method.At the end of the year,the aging analysis shows that $2100 is the estimate of uncollectible accounts.Before the year-end entry to adjust the bad debts expense is made,the balance in the Allowance for Bad Debts is ________.

The Allowance for Bad Debts account has a credit balance of $4000 before the adjusting entry for bad debts expense.The company's management estimates that 5% of net credit sales will be uncollectible for the year 2019.Net credit sales for the year amounted to $280,000.What is the amount of Bad Debts Expense reported on the income statement for 2019?

The Allowance for Bad Debts account has a credit balance of $2000 before the adjusting entry for bad debts expense.The company's management estimates that 2% of net credit sales will be uncollectible for the year 2019.Net credit sales for the year amounted to $260,000.What will be the balance of Allowance for Bad Debts on the December 31,2019 balance sheet?

In the formula for computing the interest on a note,the time period represents the portion of a year that interest has accrued on the note.

Which of the following methods requires two entries to record the recovery of accounts receivable previously written off?

Mansfield Office Furniture Store reported the following selected items at December 31,2019 (previous year - 2018 - amounts are also given as needed): Cash \ 50,000 Accounts Receivable, net: Dec. 31, 2019 75,000 Dec. 31, 2018 63,000 Accounts Payable 55,000 Cost of Goods Sold 375,000 Merchandise Inventory Dec. 31, 2019 240,000 Dec. 31, 2018 220,000 Net Credit Sales Revenue 820,000 Long-Term Assets 320,000 Long-Term Liabilities 240,000 Other Current Assets 135,000 Other Current Liabilities 125,000 Short-term Investments 80,000 Compute Mansfield's (a)acid-test ratio; (b)accounts receivable turnover ratio (round to 2 decimal places); and (c)days' sales in receivables for 2019 (round to the nearest day).Show your computations.

On December 1,2018,Restaurant Equipment Company sold machinery to a customer for $25,000.The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 11% interest.What was the total amount of cash collected by Restaurant Equipment on the maturity of the note? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

The maturity value of a note is the sum of the principal minus interest due at maturity.

A company has net credit sales of $1,400,000,beginning net accounts receivable of $300,000,and ending net accounts receivable of $200,000.What is the days' sales in accounts receivable? (Use 365 days in calculations as needed.Round any intermediate calculations to two decimal places,and your final answer to the nearest whole day.)

When using the allowance method to account for uncollectibles,the balance sheet approaches require two steps in determining bad debts expense.

After the December 31,2019 adjusting journal entries have been posted,Tri-State Distributors has the following account balances (all accounts have normal balances)are: Account Title Account Balance Accounts Receivable \ 240,000 Allowance for Bad Debts \ 12,500 Bad Debts Expense \ 14,500 Use this information to prepare,in good form,the Balance Sheet (partial)on December,31,2019.Include a proper heading.

For a promissory note,the entity to whom the promise of future payment is made is the ________.

The interest period extends from the original date of the note to the maturity date.

On October 1,2018,Parker Company made a loan to one of its customers.The customer signed a 9-month note for $150,000 at 13%.Calculate the maturity value of the note.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Once an accounts receivable is written off ________.

The two methods of accounting for uncollectible accounts receivable are ________.

A receivable is a liability because it represents a right to receive cash in the future.

When using the allowance method,the write-off of a receivable ________.