Question 1

If collection of another receivable is expected beyond one year, it is classified as a (n)

Accepted Answer

A)  other receivable under Noncurrent assets 
B)  other receivable under Current assets 
C)  investment under Current assets 
D)  investment under Noncurrent assets 
A)  other receivable under Noncurrent assets 
B)  other receivable under Current assets 
C)  investment under Current assets 
D)  investment under Noncurrent assets

Question 2

A debit balance in Allowance for Doubtful Accounts

Accepted Answer

A)  is the normal balance for that account 
B)  indicates that actual bad debt write-offs have been less than what was estimated 
C)  cannot occur if the percentage of receivables method of estimating bad debts is used 
D)  indicates that actual bad debt write-offs have exceeded previous provisions for bad debts 
A)  is the normal balance for that account 
B)  indicates that actual bad debt write-offs have been less than what was estimated 
C)  cannot occur if the percentage of receivables method of estimating bad debts is used 
D)  indicates that actual bad debt write-offs have exceeded previous provisions for bad debts

Question 3

Selling receivables

Accepted Answer

A)  shifts some of the risk to the buyer 
B)  delays the receipt of cash 
C)  occurs when an account becomes uncollectible 
D)  results in bad debt expense 
A)  shifts some of the risk to the buyer 
B)  delays the receipt of cash 
C)  occurs when an account becomes uncollectible 
D)  results in bad debt expense

Question 4

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

Accepted Answer

A)  Uncollectible Accounts Expense 
B)  Accounts Receivable 
C)  Allowance for Doubtful Accounts 
D)  Interest Expense 
A)  Uncollectible Accounts Expense 
B)  Accounts Receivable 
C)  Allowance for Doubtful Accounts 
D)  Interest Expense

Question 5

To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a

Accepted Answer

A)  debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts 
B)  debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts 
C)  debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable 
D)  debit to Loss on Credit Sales and a credit to Accounts Receivable 
A)  debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts 
B)  debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts 
C)  debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable 
D)  debit to Loss on Credit Sales and a credit to Accounts Receivable

Question 6

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

Accepted Answer

A)  $1,200 
B)  $3,000 
C)  $3,600 
D)  $7,200 
A)  $1,200 
B)  $3,000 
C)  $3,600 
D)  $7,200

Question 7

Which of the following receivables would not be classified as an "other receivable"?

Accepted Answer

A)  advance to an employee 
B)  interest receivable 
C)  refundable income tax 
D)  notes receivable 
A)  advance to an employee 
B)  interest receivable 
C)  refundable income tax 
D)  notes receivable

Question 8

Other than Accounts Receivable and Notes Receivable, name other receivables that might be included in the general ledger.

Accepted Answer

Interest Receivable,

Question 9

Notes Receivable and Accounts Receivable can also be called trade receivables.

Accepted Answer

A) True 
 B)False

Question 10

The amount for which a promissory note is written is called the

Accepted Answer

A)  realizable value 
B)  maturity value 
C)  face value 
D)  proceeds 
A)  realizable value 
B)  maturity value 
C)  face value 
D)  proceeds

Question 11

​Small companies can use either the direct write-off method or the allowance method.

Accepted Answer

A) True 
 B)False

Question 12

Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be

Accepted Answer

A)  debit Allowance for Doubtful Accounts; credit Accounts Receivable 
B)  debit Accounts Receivable; credit Notes Receivable 
C)  debit Bad Debt Expense; credit Allowance for Doubtful Accounts 
D)  debit Bad Debt Expense; credit Accounts Receivable 
A)  debit Allowance for Doubtful Accounts; credit Accounts Receivable 
B)  debit Accounts Receivable; credit Notes Receivable 
C)  debit Bad Debt Expense; credit Allowance for Doubtful Accounts 
D)  debit Bad Debt Expense; credit Accounts Receivable

Question 13

Indications that an account may be uncollectible include all of the following except the customer

Accepted Answer

A)  closes its business 
B)  is making small but regular payments 
C)  files for bankruptcy 
D)  cannot be located 
A)  closes its business 
B)  is making small but regular payments 
C)  files for bankruptcy 
D)  cannot be located

Question 14

Match each description to the appropriate term (a-i).
-All money claims against other entities

Accepted Answer

A) Accounts receivable turnover 
B) Net realizable value 
C) Accounts receivable 
D) Aging the receivables 
E) Receivables
F)Direct write-off method
G)Allowance for doubtful accounts
H)Bad debt expense
I)Notes receivable 
A) Accounts receivable turnover 
B) Net realizable value 
C) Accounts receivable 
D) Aging the receivables 
E) Receivables
F)Direct write-off method
G)Allowance for doubtful accounts
H)Bad debt expense
I)Notes receivable

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

Accepted Answer

A)  $10,000 
B)  $10,150 
C)  $10,900 
D)  $9,100 
A)  $10,000 
B)  $10,150 
C)  $10,900 
D)  $9,100

Question 17

In computing the maturity date of a note, the date the note is issued is included but the due date is omitted.

Accepted Answer

A) True 
 B)False

Question 18

The operating expense recorded from uncollectible receivables can be called all of the following except​

Accepted Answer

A)  ​Accounts Receivable 
B)  Bad Debt Expense 
C)  Doubtful Accounts Expense 
D)  ​Uncollectible Accounts Expense 
A)  ​Accounts Receivable 
B)  Bad Debt Expense 
C)  Doubtful Accounts Expense 
D)  ​Uncollectible Accounts Expense

Question 19

Journalize the following transactions in the accounts of Simmons Company:?
Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Co. on account.18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Co. on account.
Apr. 30 The note dated March 1 from Bynum Co. is dishonored, and the customer's account is charged for the note, including interest.
May 17 The note dated March 18 from Solo Co. is dishonored, and the customer's account is charged for the note, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Co. on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Solo Co. on May 17 for the dishonored note dated March 18.

Accepted Answer

The answer of Journalize the following transactions in the accounts...

Question 20

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

Accepted Answer

A)  debit to Allowance for Doubtful Accounts 
B)  credit to Cash 
C)  debit to Accounts Receivable-James 
D)  credit to Bad Debt Expense 
A)  debit to Allowance for Doubtful Accounts 
B)  credit to Cash 
C)  debit to Accounts Receivable-James 
D)  credit to Bad Debt Expense

Exam 9: Receivables

If collection of another receivable is expected beyond one year, it is classified as a (n)

A debit balance in Allowance for Doubtful Accounts

Selling receivables

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a

Which of the following receivables would not be classified as an "other receivable"?

Other than Accounts Receivable and Notes Receivable, name other receivables that might be included in the general ledger.

Notes Receivable and Accounts Receivable can also be called trade receivables.

The amount for which a promissory note is written is called the

​Small companies can use either the direct write-off method or the allowance method.

Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be

Indications that an account may be uncollectible include all of the following except the customer

Match each description to the appropriate term (a-i). -All money claims against other entities

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

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

In computing the maturity date of a note, the date the note is issued is included but the due date is omitted.

The operating expense recorded from uncollectible receivables can be called all of the following except​

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Small companies can use either the direct write-off method or the allowance method.

The operating expense recorded from uncollectible receivables can be called all of the following except