Question 1

Sunshine Service Center received a 120-day,6% note for $40,000,dated April 12 from a customer on account.

Accepted Answer

@#IMG-DLM& ​ @#IMG-DLM& (b)$40,800 [$40,

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

For a business that uses the allowance method of accounting for uncollectible receivables:

Accepted Answer

The answer of For a business that uses the allowance...

Question 4

Which of the following receivables would not be classified as an "other receivable"?

Accepted Answer

A)  advance to an employee 
B)  interest receivable 
C)  refundable income tax 
D)  notes receivable 
A)  advance to an employee 
B)  interest receivable 
C)  refundable income tax 
D)  notes receivable

Question 5

On the balance sheet after adjusting entries are made,the amount shown for the Allowance for Doubtful Accounts is equal to the

Accepted Answer

A)  uncollectible accounts expense for the year 
B)  total of the accounts receivable written off during the year 
C)  total estimated uncollectible accounts as of the end of the year 
D)  sum of all accounts that are past due 
A)  uncollectible accounts expense for the year 
B)  total of the accounts receivable written off during the year 
C)  total estimated uncollectible accounts as of the end of the year 
D)  sum of all accounts that are past due

Question 6

Harper Company lends Hewell Company $40,000 on March 1,accepting a four-month,6% interest note.Harper Company prepares financial statements on March 31.What adjusting entry should be made before the financial statements can be prepared?

Accepted Answer

A)  Cash 200
Interest Revenue 200 
B)  Interest Receivable 800
Interest Revenue 800 
C)  Interest Receivable 200
Interest Revenue 200 
D)  Note Receivable 40,000
Cash 40,000 
A)  Cash 200
Interest Revenue 200 
B)  Interest Receivable 800
Interest Revenue 800 
C)  Interest Receivable 200
Interest Revenue 200 
D)  Note Receivable 40,000
Cash 40,000

Question 7

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

Accepted Answer

A)  long-term liabilities 
B)  fixed assets 
C)  current assets 
D)  investments 
A)  long-term liabilities 
B)  fixed assets 
C)  current assets 
D)  investments

Question 8

When a company receives an interest-bearing note receivable,it will

Accepted Answer

A)  debit Notes Receivable for the maturity value of the note 
B)  debit Notes Receivable for the face value of the note 
C)  credit Notes Receivable for the maturity value of the note 
D)  credit Notes Receivable for the face value of the note 
A)  debit Notes Receivable for the maturity value of the note 
B)  debit Notes Receivable for the face value of the note 
C)  credit Notes Receivable for the maturity value of the note 
D)  credit Notes Receivable for the face value of the note

Question 9

The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivable are uncollectible.The Allowance for Doubtful Accounts has a debit balance of $110.The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:

Accepted Answer

A)  $110 
B)  $640 
C)  $530 
D)  $750 
A)  $110 
B)  $640 
C)  $530 
D)  $750

Question 10

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a credit balance of $250.The credit sales for the period total $500,000.If the company estimates uncollectible accounts at 1% of credit sales,the amount of bad debt expense to be recorded in an adjusting entry is $4,750.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
​
April 1 Sold merchandise on account to Jim Dobbs,$7,200.The cost of the merchandise is $5,400.
​
June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
​
Oct.11 Reinstated the account of Jim Dobbs and received cash in full payment.

Accepted Answer

The answer of Journalize the following transactions using the direct...

Question 13

When using the analysis of receivables method for estimating uncollectible receivables,the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.

Accepted Answer

A) True 
 B)False

Question 14

Discount Mart utilizes the allowance method of accounting for uncollectible receivables.On December 12 the company receives a $550 check from Chad Thomas in settlement of Thomas's $1,100 outstanding accounts receivable.Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart.Journalize this declaration.

Accepted Answer

The answer of Discount Mart utilizes the allowance method of...

Question 15

​No allowance account is used with the direct write-off method.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  Uncollectible Accounts Receivable 
B)  Accounts Receivable 
C)  Allowance for Doubtful Accounts 
D)  Bad Debt Expense 
A)  Uncollectible Accounts Receivable 
B)  Accounts Receivable 
C)  Allowance for Doubtful Accounts 
D)  Bad Debt Expense

Question 17

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

Accepted Answer

A)  noncurrent asset and reported under Other Receivables 
B)  current asset and reported under Other Receivables 
C)  current asset and reported under Investments 
D)  noncurrent asset and reported under Investments 
A)  noncurrent asset and reported under Other Receivables 
B)  current asset and reported under Other Receivables 
C)  current asset and reported under Investments 
D)  noncurrent asset and reported under Investments

Question 18

When a company uses the allowance method of accounting for uncollectible receivables,which entry would not be found in the general journal?

Accepted Answer

A)  Bad Debt Expense 500
Allowance for Doubtful Accounts 500 
B)  Bad Debt Expense 500
Accounts Receivable,Bob Smith 500 
C)  Cash 300
Allowance for Doubtful Accounts 200
Accounts Receivable,Bob Smith 500 
D)  Cash 500
Accounts Receivable,Bob Smith 500 
A)  Bad Debt Expense 500
Allowance for Doubtful Accounts 500 
B)  Bad Debt Expense 500
Accounts Receivable,Bob Smith 500 
C)  Cash 300
Allowance for Doubtful Accounts 200
Accounts Receivable,Bob Smith 500 
D)  Cash 500
Accounts Receivable,Bob Smith 500

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Current assets are usually listed in order

Accepted Answer

A)  of the due date 
B)  of the size 
C)  alphabetically 
D)  of liquidity 
A)  of the due date 
B)  of the size 
C)  alphabetically 
D)  of liquidity

Exam 8: Receivables

Sunshine Service Center received a 120-day,6% note for $40,000,dated April 12 from a customer on account.

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

For a business that uses the allowance method of accounting for uncollectible receivables:

Which of the following receivables would not be classified as an "other receivable"?

On the balance sheet after adjusting entries are made,the amount shown for the Allowance for Doubtful Accounts is equal to the

Harper Company lends Hewell Company $40,000 on March 1,accepting a four-month,6% interest note.Harper Company prepares financial statements on March 31.What adjusting entry should be made before the financial statements can be prepared?

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

When a company receives an interest-bearing note receivable,it will

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a credit balance of $250.The credit sales for the period total $500,000.If the company estimates uncollectible accounts at 1% of credit sales,the amount of bad debt expense to be recorded in an adjusting entry is $4,750.

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

When using the analysis of receivables method for estimating uncollectible receivables,the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.

​No allowance account is used with the direct write-off method.

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

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

When a company uses the allowance method of accounting for uncollectible receivables,which entry would not be found in the general journal?

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

Current assets are usually listed in order

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

No allowance account is used with the direct write-off method.

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

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