Question 1

The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the similarities and differences between accounts receivables,notes receivables and other receivables.

Accepted Answer

Accounts receivables result from the sal

Question 3

The direct write-off method of accounting for uncollectible accounts

Accepted Answer

A) emphasizes balance sheet relationships. 
B) is often used by small companies and companies with few receivables. 
C) emphasizes cash realizable value. 
D) emphasizes the matching of expenses with revenues. 
A) emphasizes balance sheet relationships. 
B) is often used by small companies and companies with few receivables. 
C) emphasizes cash realizable value. 
D) emphasizes the matching of expenses with revenues.

Question 4

The following are the current assets from Hanes Co.as of December 31,2014:
   
Prepare the current asset section of the balance sheet.

Accepted Answer

Hanes Co.

Question 5

At the beginning of the year,the balance in the Allowance for Doubtful Accounts is a credit of $760.During the year,$120 of previously written-off accounts were reinstated and accounts totaling $740 are written-off as uncollectible.The end of the year balance (before adjustment)in the Allowance for Doubtful Accounts should be

Accepted Answer

A) $760 
B) $120 
C) $140 
D) $740 
A) $760 
B) $120 
C) $140 
D) $740

Question 6

A company uses the allowance method to account for uncollectible accounts receivables.When the firm writes off a specific customer's account receivable

Accepted Answer

A) total current assets are reduced 
B) total expenses for the period are increased 
C) net realizable value of accounts receivable increases 
D) there is no effect on total current assets or total expenses 
A) total current assets are reduced 
B) total expenses for the period are increased 
C) net realizable value of accounts receivable increases 
D) there is no effect on total current assets or total expenses

Question 7

The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

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

The answer of Journalize the following transactions using the allowance...

Question 9

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment),and an analysis of customers' accounts indicates uncollectible receivables of $19,700.Which of the following entries records the proper adjustment for Bad Debt Expense?

Accepted Answer

A) debit Allowance for Doubtful Accounts,$17,600;credit Bad Debt Expense,$17,600 
B) debit Allowance for Doubtful Accounts,$21,800;credit Bad Debt Expense,$21,800 
C) debit Bad Debt Expense $21,800;credit Allowance for Doubtful Accounts,$21,800 
D) debit Bad Debt Expense,$17,600;credit Allowance for Doubtful Accounts,$17,600 
A) debit Allowance for Doubtful Accounts,$17,600;credit Bad Debt Expense,$17,600 
B) debit Allowance for Doubtful Accounts,$21,800;credit Bad Debt Expense,$21,800 
C) debit Bad Debt Expense $21,800;credit Allowance for Doubtful Accounts,$21,800 
D) debit Bad Debt Expense,$17,600;credit Allowance for Doubtful Accounts,$17,600

Question 10

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Accepted Answer

A) True 
 B)False

Question 11

Of the two methods of accounting for uncollectible receivables,the allowance method provides in advance for uncollectible receivables.

Accepted Answer

A) True 
 B)False

Question 12

Mr.Potts issued a 90-day,7% note for $200,000,dated February 3rd to Valley Co.on account.(Assume a 360-day year when calculating interest. )
a.Determine the due date of the note.
b.Determine the interest.
c.Determine the maturity value of the note.
d.Journalize the entry to record the issuance of the note by Potts on Feb.3.
e.Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

Accepted Answer

The answer of Mr.Potts issued a 90-day,7% note for $200,000,dated...

Question 13

Determine the due date and amount of interest due at maturity on the following notes:

Accepted Answer

The answer of Determine the due date and amount of...

Question 14

A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

Accepted Answer

A) debit Cash,$6,120;credit Notes Receivable,$6,120 
B) debit Accounts Receivable,$6,120;credit Notes Receivable,$6,000;Credit Interest Receivable,$120 
C) debit Notes Receivable,$6,060;credit Accounts Receivable,$6,060 
D) debit Accounts Receivable,$6,120;credit Notes Receivable,$6,000;Credit Interest Revenue,$120 
A) debit Cash,$6,120;credit Notes Receivable,$6,120 
B) debit Accounts Receivable,$6,120;credit Notes Receivable,$6,000;Credit Interest Receivable,$120 
C) debit Notes Receivable,$6,060;credit Accounts Receivable,$6,060 
D) debit Accounts Receivable,$6,120;credit Notes Receivable,$6,000;Credit Interest Revenue,$120

Question 15

The number of days' sales in receivables is an estimate of the length of time the accounts receivables have been outstanding.

Accepted Answer

A) True 
 B)False

Question 16

Other receivables include non trade receivables such as loans to company officers.

Accepted Answer

A) True 
 B)False

Question 17

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
Feb 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.

Accepted Answer

The answer of Journalize the following transactions using the direct...

Question 18

On August 1,Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company.The terms of the note were $20,000 face value and 6% interest.On October 30,the journal entry to record the collection of the note should include a

Accepted Answer

A) credit to Notes Receivable for $20,300 
B) debit to Interest Receivable for $300 
C) credit to Interest Revenue for $300 
D) debit to Notes Receivable for $20,000 
A) credit to Notes Receivable for $20,300 
B) debit to Interest Receivable for $300 
C) credit to Interest Revenue for $300 
D) debit to Notes Receivable for $20,000

Question 19

Accounts Receivable Turnover measures

Accepted Answer

A) how frequently during the year the accounts receivable are converted to cash 
B) the number of days of accounts receivable outstanding 
C) the fair market value of accounts receivable 
D) the efficiency of the accounts payable function 
A) how frequently during the year the accounts receivable are converted to cash 
B) the number of days of accounts receivable outstanding 
C) the fair market value of accounts receivable 
D) the efficiency of the accounts payable function

Question 20

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

Accepted Answer

A) True 
 B)False

The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time.

Discuss the similarities and differences between accounts receivables,notes receivables and other receivables.

The direct write-off method of accounting for uncollectible accounts

The following are the current assets from Hanes Co.as of December 31,2014: Prepare the current asset section of the balance sheet.

A company uses the allowance method to account for uncollectible accounts receivables.When the firm writes off a specific customer's account receivable

The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment),and an analysis of customers' accounts indicates uncollectible receivables of $19,700.Which of the following entries records the proper adjustment for Bad Debt Expense?

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Of the two methods of accounting for uncollectible receivables,the allowance method provides in advance for uncollectible receivables.

Determine the due date and amount of interest due at maturity on the following notes:

A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

The number of days' sales in receivables is an estimate of the length of time the accounts receivables have been outstanding.

Other receivables include non trade receivables such as loans to company officers.

On August 1,Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company.The terms of the note were $20,000 face value and 6% interest.On October 30,the journal entry to record the collection of the note should include a

Accounts Receivable Turnover measures

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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 8: Receivables

The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time.

Discuss the similarities and differences between accounts receivables,notes receivables and other receivables.

The direct write-off method of accounting for uncollectible accounts

The following are the current assets from Hanes Co.as of December 31,2014: Prepare the current asset section of the balance sheet.

A company uses the allowance method to account for uncollectible accounts receivables.When the firm writes off a specific customer's account receivable

The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment),and an analysis of customers' accounts indicates uncollectible receivables of $19,700.Which of the following entries records the proper adjustment for Bad Debt Expense?

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Of the two methods of accounting for uncollectible receivables,the allowance method provides in advance for uncollectible receivables.

Determine the due date and amount of interest due at maturity on the following notes:

A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

The number of days' sales in receivables is an estimate of the length of time the accounts receivables have been outstanding.

Other receivables include non trade receivables such as loans to company officers.

On August 1,Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company.The terms of the note were $20,000 face value and 6% interest.On October 30,the journal entry to record the collection of the note should include a

Accounts Receivable Turnover measures

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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