Question 1

When the maker of a note honors a note this indicates that the note is:

Accepted Answer

A) Signed 
B) Paid in full 
C) Guaranteed 
D) Notarized 
E) Cosigned 
A) Signed 
B) Paid in full 
C) Guaranteed 
D) Notarized 
E) Cosigned

Question 2

A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?

Accepted Answer

A) $4,800,000. 
B) $2,919.99. 
C) $205.48. 
D) $75,000. 
E) Average accounts receivable cannot be determined from this information. 
A) $4,800,000. 
B) $2,919.99. 
C) $205.48. 
D) $75,000. 
E) Average accounts receivable cannot be determined from this information.

Question 3

A company had an accounts receivable turnover ratio of 12 and net sales of $744,000 for a given period.What was the average amount of accounts receivables for this period?

Accepted Answer

A) $8,928,000 
B) $62,000 
C) $4,380 
D) $169.86 
E) Average accounts receivable cannot be determined from this information. 
A) $8,928,000 
B) $62,000 
C) $4,380 
D) $169.86 
E) Average accounts receivable cannot be determined from this information.

Question 4

Electron borrowed $75,000 cash from TechCom by signing a promissory note.TechCom's entry to record the transaction should include a:

Accepted Answer

A) Debit to Notes Receivable for $75,000. 
B) Debit to Accounts Receivable for $75,000. 
C) Credit to Notes Receivable for $75,000. 
D) Debit Notes Payable for $75,000. 
E) Credit to Sales for $75,000. 
A) Debit to Notes Receivable for $75,000. 
B) Debit to Accounts Receivable for $75,000. 
C) Credit to Notes Receivable for $75,000. 
D) Debit Notes Payable for $75,000. 
E) Credit to Sales for $75,000.

Question 5

Corona Company has credit sales of $4.60 million for year 2014.On December 31,2014,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $13,164.Corona prepares a schedule of its December 31,2014,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 used the aging of accounts receivable method,determine the amount that should be recorded for bad debt expense on December 31,2014.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 6

How are the direct write-off method and the allowance method applied in accounting for uncollectible accounts receivables?

Accepted Answer

The direct write-off method charges Bad

Question 7

Credit sales are recorded by crediting an account receivable for the specific customer who is making the purchase.

Accepted Answer

A) True 
 B)False

Question 8

If a customer owes interest on accounts receivable,the company should debit Interest Revenue and credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 9

A company ages its accounts receivables to determine its end of period adjustment for bad debts.At the end of the current year,management estimated that $15,750 of the accounts receivable balance would be uncollectible.Prior to any year-end adjustments,the Allowance for Doubtful Accounts had a debit balance of $175.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Accepted Answer

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

Question 10

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

Accepted Answer

The answer of If a 60-day note receivable is dated...

Question 11

When using the allowance method of accounting for uncollectible accounts,the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 12

Temper 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 debit balance of $2,575.Temper 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 Temper 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 13

Explain the basic differences between estimating the amount of uncollectible accounts using the percent of sales method and the accounts receivable method.

Accepted Answer

The percent of sales method emphasizes t

Question 14

A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee.How should the company record this transaction in the journal?

Accepted Answer

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

Question 15

When the maker of a note is unable or refuses to pay at maturity,the note is said to be ___________________.

Accepted Answer

The answer of When the maker of a note is...

Question 16

The matching principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 17

Tecom accepts the NOVA credit card for credit card sales.Tecom sends credit card receipts to NOVA on a weekly basis.NOVA charges Tecom a 2% fee.Tecom usually receives payment from NOVA within a week.Prepare entries in general journal form to record the following transactions of Tecom involving the NOVA credit card.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 18

The person who signs a note receivable and promises to pay the principal and interest is the:

Accepted Answer

A) Maker. 
B) Payee. 
C) Holder. 
D) Receiver. 
E) Owner. 
A) Maker. 
B) Payee. 
C) Holder. 
D) Receiver. 
E) Owner.

Question 19

It is never good practice to accept a note receivable in exchange for an overdue account receivable.

Accepted Answer

A) True 
 B)False

Question 20

During a given year,Compaq had net sales of $32,000 million and average account receivables of $6,850 million.Its accounts receivable turnover is equal to 0.21.

Accepted Answer

A) True 
 B)False

When the maker of a note honors a note this indicates that the note is:

A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?

A company had an accounts receivable turnover ratio of 12 and net sales of $744,000 for a given period.What was the average amount of accounts receivables for this period?

Electron borrowed $75,000 cash from TechCom by signing a promissory note.TechCom's entry to record the transaction should include a:

How are the direct write-off method and the allowance method applied in accounting for uncollectible accounts receivables?

Credit sales are recorded by crediting an account receivable for the specific customer who is making the purchase.

If a customer owes interest on accounts receivable,the company should debit Interest Revenue and credit Accounts Receivable.

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

When using the allowance method of accounting for uncollectible accounts,the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable.

Explain the basic differences between estimating the amount of uncollectible accounts using the percent of sales method and the accounts receivable method.

A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee.How should the company record this transaction in the journal?

When the maker of a note is unable or refuses to pay at maturity,the note is said to be ___________________.

The matching principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period.

The person who signs a note receivable and promises to pay the principal and interest is the:

It is never good practice to accept a note receivable in exchange for an overdue account receivable.

During a given year,Compaq had net sales of $32,000 million and average account receivables of $6,850 million.Its accounts receivable turnover is equal to 0.21.

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

When the maker of a note honors a note this indicates that the note is:

A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?

A company had an accounts receivable turnover ratio of 12 and net sales of $744,000 for a given period.What was the average amount of accounts receivables for this period?

Electron borrowed $75,000 cash from TechCom by signing a promissory note.TechCom's entry to record the transaction should include a:

How are the direct write-off method and the allowance method applied in accounting for uncollectible accounts receivables?

Credit sales are recorded by crediting an account receivable for the specific customer who is making the purchase.

If a customer owes interest on accounts receivable,the company should debit Interest Revenue and credit Accounts Receivable.

If a 60-day note receivable is dated September 22,what is the maturity date of the note?

When using the allowance method of accounting for uncollectible accounts,the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable.

Explain the basic differences between estimating the amount of uncollectible accounts using the percent of sales method and the accounts receivable method.

A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee.How should the company record this transaction in the journal?

When the maker of a note is unable or refuses to pay at maturity,the note is said to be ___________________.

The matching principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period.

The person who signs a note receivable and promises to pay the principal and interest is the:

It is never good practice to accept a note receivable in exchange for an overdue account receivable.

During a given year,Compaq had net sales of $32,000 million and average account receivables of $6,850 million.Its accounts receivable turnover is equal to 0.21.

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