Exam 8: Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

On the maturity date of a $5,000,3-month,10% note,the borrower sends a check that includes the principal and all of the interest due on the note.What is the amount of the borrower's check?

The direct write-off method is not allowed under GAAP because it violates the:

The entry to record the collection of a previously written-off account needs to be recorded because a customer paid $9,600 after its accounts receivable had been written off.This entry includes a:

When the direct write-off method is used to account for uncollectible accounts,which of the following accounts would not be used?

The accounts receivable account for each customer is called a subsidiary account.

Davidoff Company reported net credit of $735,000 on account for the year ending December 31,2016.On January 1,2016,the Allowance for Doubtful Accounts had a credit balance of $18,000.During 2016,$30,000 of uncollectible accounts receivable were written off.Davidoff has experienced bad debt losses of 3% of credit sales in prior periods.Using the percentage of credit sales method,what is the adjusted balance in the Allowance for Doubtful Accounts at December 31,2016?

Labrador Inc.has the following information available for the current year: What was the amount of write-offs during the year?

Using the allowance method,which is the correct adjusting journal entry to record bad debt expense?

Wadsworth Corp.has the following information: No recoveries were recorded during the year.What was the amount of accounts written off during the year?

As of December 31,Frappe Company has a balance of $5,000 in accounts receivable.Of this amount,$500 is past due and the remainder is not yet due.Frappe has a credit balance of $45 in the Allowance for Doubtful Accounts.Frappe Company estimates its bad debt losses using the aging of receivables method,with estimated bad debt loss rates equal to 1% of accounts not yet due and 10% of past due accounts.How will the Bad Debt Expense account be included in the required adjusting journal entry at year-end?

Using the aging method of accounts receivable method,$5,000 of the company's Accounts Receivable are estimated to be uncollectible.At the end of the year,the balance of Accounts Receivable is $100,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $500.Credit sales during the year totaled $150,000.What is the current year's Bad Debt Expense?

Samberg Inc.had the following transactions. Oct.1 - Sold $10,000 of merchandise on account,1/10,n/30 to McCormick Industries. Nov.1 - Received a $10,000,90-day,10% note from McCormick Industries to settle its $10,000 unpaid balance. Dec.31 - Accrued interest on the note.(Round to the nearest whole dollar amount.) Jan.31 - Received the interest on the note's maturity date. Jan.31 - Received the principal on the note's maturity date.(Round to the nearest whole dollar amount.) Required: Prepare the required journal entries.

The receivables turnover ratio:

Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year.Castor Soda had a turnover ratio of 9.3 this year and 9.3 last year.This implies:

The accounting principle that governs the recording of bad debt expense in the same period as sales revenue is called the:

At the end of the period,the manager of Philly Electronics estimated that $40,000 of its accounts receivable were uncollectible.If the Allowance for Doubtful Accounts has a credit balance of $11,200,which of the following sets forth the adjusting entry to record bad debts for the period?

The adjusting entry to record the estimated bad debts in the period credit sales occur would normally include a debit to:

A company reported a receivables turnover ratio of 8.0.Cost of goods sold was $350,000 and net sales revenue was $480,000.The average net receivables must have been

If the Allowance for Doubtful Accounts on January 1 equals $10,000 and during the year $11,000 of specific customers' accounts were written off,then its Allowance for Doubtful Accounts will have an unadjusted balance of:

The adjusting entry used to record the estimated bad debts in the period credit sales occur decreases: