Question 1

Twin Cities Consulting uses the allowance method.Prepare journal entries to record the following transactions that took place during 2014 and 2015.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 2

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

Accepted Answer

promissory note

Question 3

As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.

Accepted Answer

A) True 
 B)False  False

Question 4

On November 15,2013,Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460.The note is due in 90 days and has an interest rate of 7.5%.What would be the amount required for the December 31,2013,adjusting journal entry?

Accepted Answer

A) $35,913.06 
B) $34,615.00 
C) $10,384.50 
D) $1,298.06 
E) $2,596.13 
A) $35,913.06 
B) $34,615.00 
C) $10,384.50 
D) $1,298.06 
E) $2,596.13

Question 5

Temper Company has credit sales of $3.10 million for year 2013.Temper estimates that .9% of the credit sales will not be collected.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222.Temper prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:   Assuming the company uses the aging of Accounts Receivable method,what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

Accepted Answer

A) $25,246.40 
B) $27,468.40 
C) $23,024.40 
D) $27,900.00 
E) $24,420.40 
A) $25,246.40 
B) $27,468.40 
C) $23,024.40 
D) $27,900.00 
E) $24,420.40

Question 6

The process of using accounts receivable as security for a loan is known as factoring accounts receivable.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Acme Company has credit sales of $3.10 million for year 2013.Accounts Receivable total $947,360 and the company estimates that 2% of accounts receivable will remain uncollectible.Historically,.9% of sales have been uncollectible.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $2,575.Acme prepared a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:   Assuming the company uses the percent of accounts receivable method,what is the amount that Acme will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

Accepted Answer

A) $18,947.20 
B) $16,372.20 
C) $23,024.40 
D) $27,900.00 
E) $21,522.20 
A) $18,947.20 
B) $16,372.20 
C) $23,024.40 
D) $27,900.00 
E) $21,522.20

Question 10

Crystal Products allows customers to use bank credit cards to charge purchases.The bank used by Crystal Products processes all bank credit cards in exchange for a 3% processing fee.All credit card receipts deposited are credited to the company account on the day of deposit.Assume that on January 18,Crystal Products sold and deposited $19,000 worth of bank credit card receipts.Prepare the general journal entry to record this transaction.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 11

Timmons Company had a January 1 credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year.The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
   What amount should appear in the allowance for doubtful accounts in the December 31 balance sheet for the current year?

Accepted Answer

$7,000 - $

Question 12

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 0.5% of credit sales to be uncollectible.What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

Accepted Answer

A) $925 
B) $1,225 
C) $4,200 
D) $4,500 
E) $45,000 
A) $925 
B) $1,225 
C) $4,200 
D) $4,500 
E) $45,000

Question 13

Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year.Coca-Cola's turnover was 9.3 for this year and 9.3 for last year.These results imply that:

Accepted Answer

A) Coke has the better turnover for both years. 
B) Pepsi has the better turnover for both years. 
C) Coke's turnover is improving. 
D) Coke's credit policies are too loose. 
E) Coke is collecting its receivables more quickly than Pepsi in both years. 
A) Coke has the better turnover for both years. 
B) Pepsi has the better turnover for both years. 
C) Coke's turnover is improving. 
D) Coke's credit policies are too loose. 
E) Coke is collecting its receivables more quickly than Pepsi in both years.

Question 14

Teller,a calendar year company,purchased merchandise from TechCom on October 17 of the current year.TechCom accepted Teller's $4,800,90-day,10% note as payment.What entry should TechCom make on January 15 of the next year when the note is paid,assuming an adjusting entry for interest was made for interest on December 31?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 15

A company has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The company's reported amount of bad debts expense is $1,750.

Accepted Answer

A) True 
 B)False

Question 16

Calculate the total amount of interest that would be owed on a $9,000,60-day,9% note receivable.

Accepted Answer

$9,000 x .

Question 17

On August 1,2013,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the total amount collected at the maturity date?

Accepted Answer

A) $123,965.00 
B) $2,479.30 
C) $126,444.30 
D) $121,485.70 
E) $133,882.20 
A) $123,965.00 
B) $2,479.30 
C) $126,444.30 
D) $121,485.70 
E) $133,882.20

Question 18

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

Accepted Answer

The answer of Prepare general journal entries for the following...

Question 19

The following information is from the annual financial statements of Nancy Company.     
-What is the accounts receivable turnover ratio for 2013?

Accepted Answer

A) 6.41 
B) 4.97 
C) 6.72 
D) 5.40 
E) 6.56 
A) 6.41 
B) 4.97 
C) 6.72 
D) 5.40 
E) 6.56

Question 20

A 90-day note issued on April 20 has a maturity date of:

Accepted Answer

A) July 17. 
B) July 18. 
C) July 19. 
D) July 20. 
E) July 21. 
A) July 17. 
B) July 18. 
C) July 19. 
D) July 20. 
E) July 21.

Twin Cities Consulting uses the allowance method.Prepare journal entries to record the following transactions that took place during 2014 and 2015.

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.

On November 15,2013,Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460.The note is due in 90 days and has an interest rate of 7.5%.What would be the amount required for the December 31,2013,adjusting journal entry?

The process of using accounts receivable as security for a loan is known as factoring accounts receivable.

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

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

Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year.Coca-Cola's turnover was 9.3 for this year and 9.3 for last year.These results imply that:

A company has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The company's reported amount of bad debts expense is $1,750.

Calculate the total amount of interest that would be owed on a $9,000,60-day,9% note receivable.

On August 1,2013,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the total amount collected at the maturity date?

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

The following information is from the annual financial statements of Nancy Company. -What is the accounts receivable turnover ratio for 2013?

A 90-day note issued on April 20 has a maturity date of:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 7: Reporting and Analyzing Receivables

Twin Cities Consulting uses the allowance method.Prepare journal entries to record the following transactions that took place during 2014 and 2015.

A ____________________ is a signed promise to pay a specified amount of money either on demand or at a definite future date.

As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.

On November 15,2013,Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460.The note is due in 90 days and has an interest rate of 7.5%.What would be the amount required for the December 31,2013,adjusting journal entry?

The process of using accounts receivable as security for a loan is known as factoring accounts receivable.

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

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

Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year.Coca-Cola's turnover was 9.3 for this year and 9.3 for last year.These results imply that:

A company has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The company's reported amount of bad debts expense is $1,750.

Calculate the total amount of interest that would be owed on a $9,000,60-day,9% note receivable.

On August 1,2013,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the total amount collected at the maturity date?

Prepare general journal entries for the following transactions of Viking Company,assuming they use the allowance method to account for uncollectible accounts.

The following information is from the annual financial statements of Nancy Company. -What is the accounts receivable turnover ratio for 2013?

A 90-day note issued on April 20 has a maturity date of:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters