Exam 8: Reporting and Analyzing Receivables

In reviewing the accounts receivable, the cash receivable value is $28,000 before the write-off of a $2,000 account.What is the cash receivable value after the write-off?

During 2022, Sedgewick Inc.had sales on account of $528,000, cash sales of $216,000, and collections on account of $336,000.In addition, they collected $5,800 which had been written off as uncollectible in 2021.As a result of these transactions, the change in the accounts receivable balance from the beginning of the year to the end of the year indicates a

An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

Trade receivables occur when two companies trade or exchange notes receivables.

The interest on a $10,000, 9%, 90-day note receivable is

Nance Co.holds Gant Inc.'s $30,000, 120-day, 9% note.The entry made by Nance Co.when the note is collected, assuming no interest has previously been accrued is:

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

Under the allowance method of accounting for bad debts, why must uncollectible accounts receivable be estimated at the end of the accounting period?

When the allowance method of accounting for uncollectible accounts is used, Bad Debt Expense is recorded

The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debt Expense

Wilton sells softball equipment.On November 14, they shipped $4,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30.On November 21, they received an order from Douglas High School for $2,400 worth of custom printed bats to be produced in December.On November 30, Paola Middle School returned $400 of defective merchandise.Wilton has received no payments from either school as of month end.What amount will be recognized as accounts receivable, net on the balance sheet as of November 30?

The interest on a $25,000, 10%, 1-year note receivable is

A dishonored note receivable

The accounts receivable turnover ratio is computed by dividing total sales by the average net receivables during the year.

The sale of receivables by a business

A popular variation of the accounts receivable turnover is the

In 2022, Wilkinson Company had net credit sales of $2,250,000.On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $54,000.During 2022, $90,000 of uncollectible accounts receivable were written off.Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis).If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?

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

Dorman Company had the following items to report on its balance sheet: Based on this information, what amount should appear in the "Other Receivables" category?

If a company fails to record estimated bad debts expense,