Exam 8: Reporting and Analyzing Receivables

LeBlanc Corp.signed a document promising to pay First Bank a specified amount of money at a definite future date at a certain interest rate.This transaction is reported as a(n)

The carrying amount of Accounts Receivable is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

An aging of a company's accounts receivable indicates that $4,200 is estimated to be uncollectible.If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record bad debts for the period will require a

Supplemental detail related to the major types of receivables should be identified

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

If an account is collected after having been previously written off

Accounts receivable are valued and reported on the statement of financial position

Wrong Corp.receives a $7,000, 6-month, 4% note from Right Corp.in settlement of a past-due account receivable.What entry will Day Corp.make upon receiving the note?

The maturity date of a note is

Which of the following is true about the presentation of receivables?

The Allowance for Doubtful Accounts is a liability account and has a normal credit balance.

Interest income is never earned on accounts receivable.

One might infer from a debit balance in Allowance for Doubtful Accounts that

Interest accrued on a note receivable is

A high receivables turnover ratio indicates that

Which of the following is not one of the four key steps in managing accounts receivable?

Receivables are considered financial assets.

Under the allowance method for uncollectible accounts,

If Winner Ltd.accepts a note receivable from Loser Inc.for the sale of equipment

It is possible for the allowance account to have a debit balance before the year-end adjusting entry is recorded.