Exam 9: Receivables

The existence of uncollectible accounts is evidence of poor credit policies.

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

At year end,Korkin Design Company has a $900 credit balance in Allowance for Uncollectible Accounts.If an accounts receiving aging method analysis indicates that an estimated $5,700 of year-end receivables are uncollectible,what will be the balance in Allowance for Uncollectible Accounts after the appropriate adjusting entry for uncollectible accounts has been made? Indicate if the balance is a debit or credit.

Assume that on November 1,a note which has a face value of $9,000,bears interest at 9 percent for 120 days,received from a customer as an extension of her past-due account is dishonored.The entry that would be made to record the dishonor include all except

Use the following T account to answer the questions below (assume a calendar-year accounting period). What apparently occurred on: a.January 10? b.January 15? c.May 12? d.December 31?

The Allowance for Uncollectible Accounts is a contra-asset account.

Assume that on December 1,a $6,000,90-day,10 percent note receivable was received from a customer as an extension of his past-due account.The entry that would be made to record the note is:

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 credit 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 percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment)would be

Interest on a note receivable may be calculated without knowledge of the

You have just received notice that Agnes Fisher,a customer of yours with an Accounts Receivable balance of $200,has gone bankrupt and will not be making any future payments.Assuming you use the allowance method,the journal entry you make is to

The fee for factoring without recourse is normally higher than it would be with recourse.

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts,

A note receivable dated May 23 and due in 90 days would be due on

Bad debts are considered as an expense of selling on credit.

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 credit 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 $11,700 of uncollectible accounts. Using the accounts receivable aging method,the Allowance for Uncollectible Accounts balance would be credited for

The balance of Accounts Receivable,net of the allowance account,is $25,000 before the write-off of a $2,000 account.What is the Accounts Receivable balance,net of the allowance account,after the write-off?

A company's acceptance of credit cards,like MasterCard,is an example of factoring with recourse.

Which of the following statements is true about factoring without recourse?

Which of the following statements is not true when FLK Company discounts a note receivable to the bank?

When an account receivable that was previously written off is collected,it is necessary to reverse the entry for the write-off before recording the collection.