Exam 8: Reporting and Analyzing Receivables

Under the allowance method for uncollectible accounts, the net realizable value of receivables is the same both before and after an account has been written off.

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when

The journal entry to record a credit card sale using a nonbank credit card (e.g., Canadian Tire or Sears) includes a debit to the

Day Corp receives a $9,000, 8-month, 6% note from Night Corp in settlement of a past due account receivable. What entry will Day Corp make upon receiving the note?

Which of the following is not true regarding promissory notes?

When a subsidiary ledger and a control account are used, each journal entry that affects accounts receivable must be posted twice.

Use the following information for questions Under the aging of a company's accounts receivable, the uncollectible accounts are estimated to be $24,000. The unadjusted balance for the Allowance for Doubtful Accounts is $8,000 credit. -What is the balance in the Allowance for Doubtful Accounts account after adjustment?

The receivables turnover should be analyzed in conjunction with other ratios such as the current ratio and inventory turnover.

The net amount expected to be received in cash from receivables is termed the

The maker of a promissory note is the party to whom the payment is to be made.

The receivables turnover ratio is used to analyze

Under the allowance method of accounting for uncollectible accounts, Bad Debts Expense is debited

Under the allowance method for uncollectible accounts, bad debts expense is not recorded until a customer defaults.

A note receivable is a written promise by the maker to the payee to pay a specified amount of money at a definite time.

A debit balance in the Allowance for Doubtful Accounts

Allowance for Doubtful Accounts is credited when an account is determined to be uncollectible.

The two accounting problems with accounts receivable are: (1) recognizing and (2) disposing.

Bad Debts Expense is reported on the income statement as

Receivables might be sold to