Exam 8: Receivables

Current assets are usually listed in order

For the fiscal years 2009 and 2010,Apple Co.reported the following: a.Compute the accounts receivable turnover for 2010. b.Compute the number of days' sales in receivable at the end of 2010.

Interest on a note can be calculated without knowledge of the

Journalize the following transactions (Assume a 360-day year when calculating interest. ):

Although Allowance for Doubtful Accounts normally has a credit balance,it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period.

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 for and received cash in full payment.

When using the direct write-off method off accounting for uncollectible receivables,the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000.What is the net realizable value of the accounts receivable?

For each of the following notes receivables held by Rogers Company determine the interest revenue to be reported on the income statements for 2011 and 2012.Round answers to nearest whole dollar.

The journal entry to record a note received from a customer to replace an account is

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

Based on the following data and using a 365-day year,compute (a)the accounts receivable turnover and (b)the number of days' sales in receivables.The industry average is a collection period of once every 20 days,and the number of days' sales in receivables averages 25.(c)Comment on this situation.

On October 1,Black Company receives a 9% interest bearing note from Reese Company to settle a $20,000 account receivable.The note is due in six months.At December 31,Black should record interest revenue of

When a note is written to settle an open account,no entry is necessary.

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400.If Allowance for Doubtful Accounts has a $1,300 debit balance,the adjustment to record the bad debt expense for the period will require a

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

The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible.

At the end of the current year,Accounts Receivable has a balance of $700,000;Allowance for Doubtful Accounts has a credit balance of $5,500;and net sales for the year total $3,500,000.Bad debt expense is estimated at 1/2 of 1% of net sales. 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.

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

The number of days' sales in receivables