Exam 7: Reporting and Analyzing Receivables

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa signed a 60-day,10% promissory note for $7,800.If the note is dishonored,but Tubman intends to continue collection efforts,what is the journal entry to record the dishonored note? (Use 360 days a year.)

The person who signs a note receivable and promises to pay the principal and interest is the:

A credit sale of $5,275 to a customer would result in which of the following?

The balance in Accounts Receivable,the control account,must always equal the total of all accounts in the accounts receivable subsidiary ledger.

What is the maturity date of a 120-day note receivable dated March 5?

The materiality constraint,as applied to bad debts:

On July 31,Orwell Co.has $448,800 of accounts receivable. Required: 1.Prepare journal entries to record the following selected August transactions.The company uses the perpetual inventory system. 2.Also prepare any footnotes to the August 31 financial statements that result from these transactions. 3.Calculate the balance in the Accounts Receivable account as of August 10.

Jasper makes a $25,000,90-day,7% cash loan to Clayborn Co.Jasper's entry to record the transaction should be:

Prepare general journal entries for the following transactions for the current year:

Failure by a promissory notes' maker to pay the amount due at maturity is known as:

The period of a note is the time from the note's (contract)date to its maturity date.

Separate accounts receivable information for each customer is important because it reveals all of the following except:

Allowance for Doubtful Accounts is a contra asset; its balance is added to Accounts receivable.

The accounts receivable turnover is calculated by dividing ________ by ________.

MacKenzie Company sold $180 of merchandise to a customer who used a Regional Bank credit card.Regional Bank deducts a 4% service charge for sales on its credit cards.MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately.The journal entry to record this sale transaction would be:

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off,the entry to record the write-off against the allowance account results in:

A company using the percentage of sales method for estimating bad debts has sales of $350,000 and estimates that 1.0% of its sales are uncollectible.The unadjusted balance in Allowance for Doubtful Accounts is a $500 credit.The estimated amount of bad debts expense is $3,500.

When the maker of a note is unable or refuses to pay at maturity,the note is said to be ________.

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

A company had total sales of $600,000,net sales of $550,000,and an average accounts receivable of $90,000.Its accounts receivable turnover equals: