Exam 9: Accounting for Receivables

Installment accounts receivable are classified as current assets,even though the installment period is more than one year,if the seller regularly offers customers such terms

The accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

Accounts receivable occur from credit sales to customers.

Credit sales are recorded by crediting an Accounts Receivable.

On May 31,a company had a balance in its accounts receivable of $103,895.Prepare journal entries to record the following transactions for June.

Explain the difference between honoring and dishonoring a note receivable.

On December 31 of the current year,a company's unadjusted trial balance included the following: Accounts Receivable,debit balance of $97,250; Allowance for Doubtful Accounts,credit balance of $951.What amount should be debited to Bad Debts Expense,assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?

All of the following statements regarding valuation of receivables under U.S.GAAP and IFRS are true except:

The accounts receivable turnover indicates how often accounts receivable are received and collected during the period.

Prepare general journal entries for the following transactions of this company for the current year:

All of the following statements regarding recognition of receivables under U.S.GAAP and IFRS are true except:

____________________ is the charge for using (not paying)money until a later date.

If a credit card sale is made,the seller can either debit Cash or debit Accounts receivable at the time of the sale depending on the type of credit card.

On November 19,Hayes Company receives a $15,000,60-day,10% note from a customer as payment on his account.What adjusting entry should be made on the December 31 year-end?

On September 30,Emerson Co.has $540,250 of accounts receivable.Emerson uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $13,750.1.Prepare journal entries to record the following selected October transactions.The company uses the perpetual inventory system.2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet. a.Sold $325,000 of merchandise (that cost $178,500)to customers on credit. b.Received $425,100 cash in payment of accounts receivable. c.Wrote off $16,700 of uncollectible accounts receivable. d.In adjusting the accounts on October 31,its fiscal year-end,the company estimated that 3.0% of accounts receivable will be uncollectible.

Since pledged accounts receivables only serve as collateral for a loan and are not sold,it is not necessary to disclose the pledging.

A company used the percent of sales method to determine its bad debts expense.At the end of the current year,the company's unadjusted trial balance reported the following selected amounts: All sales are made on credit.Based on past experience,the company estimates 1% of credit sales to be uncollectible.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

A company had net sales of $600,000,total sales of $750,000,and an average accounts receivable of $75,000.Its accounts receivable turnover equals:

On August 9,Pierce Company receives a $8,500,90-day,8% note from customer Eric Simms as payment on his account.Compute the amount due at maturity for the note.