Exam 9: Receivables

When a company is using the direct write-off method,and an account is written off,the journal entry consists of a ________.

An organization's receivables can be categorized into accounts receivable,notes receivable,and other receivables.

A debtor is a party to a credit transaction who will receive the cash for the transaction at a later date.

A newly created design business,Rhodes Art,is finishing its first year of operations.During the year,credit sales were $42,000 and collections of credit sales were $33,000.One account for $625 was written off.Smart Art uses the aging-of-receivables method to account for bad debts expense.It has estimated $250 as uncollectible at year-end.What is the amount of the Bad Debts Expense for the first year of operations?

On October 1,2017,Zircon Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.Interest revenue was accrued through December 31,2017.Zircon receives the maturity value of the note at maturity.Prepare the journal entry to record the collection.

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

On October 1,2017,Android,Inc.made a loan to one of its customers.The customer signed a 4-month note for $110,000 at 12%.How much interest revenue did the company record in the year 2017? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

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

When a company uses the allowance method to measure bad debts,________.

On October 1,2017,Parsons,Inc.sold machinery to a customer for $20,000.The customer could not pay at the time of sale,but agreed to pay 10 months later,and signed an 10-month note at 10% interest.How much interest revenue was earned during 2017? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

The Allowance for Bad Debts account has a credit balance of $8,300 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 $14,700.What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

On October 1,2016,Lee's Electronic sold merchandise in exchange for a 4 month,$20,000 note receivable,with 6% interest.Interest revenue of $400 is earned in 2017.

Interest on a $6,000 note at 6% for 4 months is $120.

On January 1,A Plus Services has the following balances: Accounts Receivable $28,000 (debit) Bad Debts Expense $0 A Plus Services has the following transactions during January: Credit sales of $110,000,collections of credit sales of $87,000,and write-offs of $19,000.A Plus Services uses the direct write-off method.At the end of January,the balance of Accounts Receivable is ________.

The entity that signs the promissory note and promises to pay the required amount is the ________.

On October 1,2017,Hubbard,Inc.made a loan to one of its customers.The customer signed a 6-month note for $120,000 at 15%.Calculate the total interest earned on 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 ________.

When using the allowance method,Allowance for Bad Debts is debited when an account receivable is written off.

On October 1,2017,Miller,Inc.made a loan to one of its customers.The customer signed a 6-month note for $100,000 at 13%.How much interest revenue did the company record in 2018 for this note? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Accounts Receivable are generally reported at the gross amount on the balance sheet.