Exam 9: Receivables

When using the direct charge-off method,year-end adjustments for uncollectible accounts expense are not made.

Days' sales uncollected cannot be calculated without first knowing the receivables turnover.

Following a lenient credit-granting policy will probably result in fewer defaults by customers.

Under the accounts receivable aging method,the balance in Allowance for Uncollectible Accounts must be considered prior to adjusting for estimated uncollectible accounts.

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the percentage of net sales method,the entry to record the Uncollectible Accounts Expense would be

If the amount of uncollectible accounts expense is understated at year end,

The following data exist for Sexton Company: Calculate the receivables turnover and the average days' sales uncollected for 2014.(Round to 1 decimal point and even days,respectively. )

Both the allowance method and the direct charge-off method are acceptable for tax purposes.

If a promissory note is dishonored,the payee should record interest income.

A company that uses the allowance method writes off a specific account as uncollectible,but then the customer pays.The entries made upon receiving payment will

One might infer from a debit balance in Allowance for Uncollectible Accounts that

A 60-day note dated December 10 is due on February 10.

The principal of a non-interest-bearing note includes an implied interest cost.

Using the accounts receivable aging method,estimated uncollectible accounts are $40,000.If the balance of the Allowance for Uncollectible Accounts is an $8,000 debit before adjustment,what is the balance after adjustment?

Notes receivable due within 90 days and cash are examples of short-term financial assets.

A company has the following listed asset accounts.Determine the amount that should appear on the balance sheet as the total current assets.

The receivables turnover is expressed in terms of

The receivables turnover is expressed as a percentage.

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a debit balance of $1,000.Net sales for the year were $500,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts. Using the accounts receivable aging method,the Allowance for Uncollectible Accounts balance (after adjustment)would be

The following data exist for Weaver Company: Calculate the receivables turnover and the average days' sales uncollected for 2014.(Round to 1 decimal point and even days,respectively. )