Question 1

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

Accepted Answer

A)  $10,000 
B)  $10,150 
C)  $10,900 
D)  $9,100 
A)  $10,000 
B)  $10,150 
C)  $10,900 
D)  $9,100

Question 2

If the allowance 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 Expense 
B)  Allowance for Doubtful Accounts 
C)  Accounts Receivable 
D)  Interest Expense 
A)  Uncollectible Accounts Expense 
B)  Allowance for Doubtful Accounts 
C)  Accounts Receivable 
D)  Interest Expense

Question 3

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Accepted Answer

A) True 
 B)False

Question 4

When referring to a note receivable or promissory note

Accepted Answer

A)  the maker is the party to whom the money is due. 
B)  the note is not considered a formal credit instrument. 
C)  the note cannot be factored to another party. 
D)  the note may be used to settle an accounts receivable. 
A)  the maker is the party to whom the money is due. 
B)  the note is not considered a formal credit instrument. 
C)  the note cannot be factored to another party. 
D)  the note may be used to settle an accounts receivable.

Question 5

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

Accepted Answer

A) True 
 B)False

Question 6

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Accepted Answer

@#IMG-DLM&_TB2085_00_TB2085_00

Question 7

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 8

The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is

Accepted Answer

A)  $40,000 
B)  $40,400 
C)  $43,600 
D)  $44,000 
A)  $40,000 
B)  $40,400 
C)  $43,600 
D)  $44,000

Question 9

Financial Statement data for the years ended December 31 for Parker Corporation is as follows:
2012 2011
Net Sales $2,595,600 $2,409,500
Accounts Receivable
Beginning of the year $ 390,000 $400,000
End of the year 434,000 390,000
a) Determine the accounts receivable turnover for 2012 and 2011.
b) Determine the number of days' sales in receivables for 2012 and 2011.
c) Does the change in accounts receivable turnover and number of days' sales in receivables from 2011 to 2012 indicate a favorable or unfavorable trend.?

Accepted Answer

a) Accounts receivable turnover:
2012 20

Question 10

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)  debit to Bad Debt Expense for $8,600. 
B)  debit to Bad Debt Expense for $7,900. 
C)  debit to Bad Debt Expense for $7,200. 
D)  credit to Allowance for Doubtful Accounts for $700. 
A)  debit to Bad Debt Expense for $8,600. 
B)  debit to Bad Debt Expense for $7,900. 
C)  debit to Bad Debt Expense for $7,200. 
D)  credit to Allowance for Doubtful Accounts for $700.

Question 11

Journalize the following transactions using the allowance 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

@#IMG-DLM&_TB2085_00

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

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

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

When referring to a note receivable or promissory note

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 9: Receivables

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

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

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

When referring to a note receivable or promissory note

When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters