Exam 9: Receivables

At year end,MWE Graphics has a $700 debit balance in Allowance for Uncollectible Accounts.It estimates that 5 percent of the $40,000 in sales are uncollectible.Give the amount that should be used in the adjusting entry to record uncollectible accounts using the percentage of net sales method.(Show your calculations.)

Under securitization,a company sells individual receivables with recourse at a large discount.

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 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 Allowance for Uncollectible Accounts balance (after adjustment)would be

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

Determine the interest on the following notes payable: a.$6,000 at 10 percent for 60 days b.$600 at 16 percent for 4 months c.$10,000 at 12 percent for 45 days d.$900 at 14 percent for 30 days

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 performs the aging of accounts receivable calculation and arrives at an estimate for uncollectible accounts of $900.If Allowance for Uncollectible Accounts has a debit balance of $200 prior to the year-end adjustment,for how much should the adjustment be journalized?

The allowance for uncollectible accounts is necessary because

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

Which of the following topics involves a contingent liability?

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

Explain the two methods used to estimate uncollectible accounts.

Which of the following statements is false regarding promissory notes?

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 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

When a note is dishonored,the payee's journal entry includes a

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

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 accounts receivable aging method,the entry to record Uncollectible Accounts Expense would be:

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