Question 1

Match between columns
                        Premises:    Allowance for doubtful accounts 
   Aging of accounts receivable 
   Accounts receivable 
   Interest 
   Bad debts 
   Matching principle 
   Payee of a note 
   Maker of a note 
   Promissory note 
   Realizable value

Accepted Answer

The Answer of  A written promise to pay a is...

Question 2

If a 90-day note receivable is dated June 12,what is the maturity date of the note?

Accepted Answer

September 10

Question 3

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.
 $\begin{array}{|l|l|}
\hline\text { March } 11 & \begin{array}{l}
\text { Sold merchandise for } \$ 4,500 \text { to customers who use the NOVA credit card and } \
\text { deposited the credit card receipts. }
\end{array} \
\hline \text { March 20 } & \begin{array}{l}
\text { Received cash proceeds less the service charge for the March } 14 \text { deposit to } \
\text { NOVA }
\end{array}\
\hline
\end{array}$

Accepted Answer

$$\begin{array} { | l | l | r | r | } 
\hline \text { March 11 } & \text { Accounts Receivable-NOVA } & 4,410 & \
\hline & \text { Credit Card Experise } & 90 & \
\hline & \text { Sales } & & 4,500 \
\hline \text { March } 20 & \text { Cash } & 4,410 & \
\hline & \text { Accounts Receivable - NOVA } & & 4,410 \
\hline
\end{array}$$

Question 4

When using the allowance method of accounting for uncollectible accounts,the entry to write off Harold's uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable - Harold.

Accepted Answer

A) True 
 B)False

Question 5

Dell reported net sales of $8,739 million and average accounts receivable of $864 million.Its accounts receivable turnover is:

Accepted Answer

A) 0.90 
B) 10.1 
C) 36.1 
D) 50.0 
E) 3,686 
A) 0.90 
B) 10.1 
C) 36.1 
D) 50.0 
E) 3,686

Question 6

A promissory note is a written promise to pay a specified amount of money either on demand or at a definite future date.

Accepted Answer

A) True 
 B)False

Question 7

A company received a $1,000,90-day,10% note receivable.The journal entry to record receipt of the note would include a debit to Notes Receivable.

Accepted Answer

A) True 
 B)False

Question 8

The following information is from the annual financial statements of Nancy Company.
$$\begin{array} { l r r r } 
& 2010 & 2009 & 2008 \
\text { Net Sales } & \$ 3 0 7 , 0 0 0 &  \$ 2 3 8 , 0 0 0  &  \$ 2 8 5 , 0 0 0  \
\text { Accounts Receivable, net (year-end) } & 47,900 & 45,700 & 42,400
\end{array}$$
 
What is the accounts receivable turnover ratio for 2010?

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 9

The _______________________ method uses both past and current receivables to estimate the allowance amount and assumes that the longer an amount is past due,the more likely it is to be uncollectible.

Accepted Answer

Aging of a

Question 10

The percent of sales method for estimating bad debts assumes that a given percent of a company's credit sales for the period are uncollectible.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

The answer of ____________________ is the charge for using (not...

Question 12

On August 1,2010,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 13

Writing off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

Accepted Answer

Allowance

Question 14

An accounting procedure that (1)estimates and reports bad debts expense from credit sales during the period of the sales and (2)reports accounts receivable at the amount of cash to be collected is the:

Accepted Answer

A) Allowance method of accounting for bad debts 
B) Aging of notes receivable 
C) Adjustment method for uncollectible debts 
D) Direct write-off method of accounting for bad debts 
E) Cash basis method of accounting for bad debts 
A) Allowance method of accounting for bad debts 
B) Aging of notes receivable 
C) Adjustment method for uncollectible debts 
D) Direct write-off method of accounting for bad debts 
E) Cash basis method of accounting for bad debts

Question 15

How does John Earle of Johnny Cupcakes,Inc.,view decisions involving sales on credit?

Accepted Answer

John feels that decisions involving sale

Question 16

The maturity date of a note refers to the date the note is signed.

Accepted Answer

A) True 
 B)False

Question 17

When a company has a high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy.

Accepted Answer

A) True 
 B)False

Question 18

A promissory note:

Accepted Answer

A) Is a short-term investment for the maker 
B) Is a written promise to pay a specified amount of money at a certain date 
C) Is a liability to the payee 
D) Is another name for an installment receivable 
E) Cannot be used in payment of an account receivable 
A) Is a short-term investment for the maker 
B) Is a written promise to pay a specified amount of money at a certain date 
C) Is a liability to the payee 
D) Is another name for an installment receivable 
E) Cannot be used in payment of an account receivable

Question 19

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

Accepted Answer

The answer of A ____________________ is a signed promise to...

Question 20

A supplementary record created to maintain a separate account for each customer is called the ________________________.

Accepted Answer

Accounts r

If a 90-day note receivable is dated June 12,what is the maturity date of the note?

When using the allowance method of accounting for uncollectible accounts,the entry to write off Harold's uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable - Harold.

Dell reported net sales of $8,739 million and average accounts receivable of $864 million.Its accounts receivable turnover is:

A promissory note is a written promise to pay a specified amount of money either on demand or at a definite future date.

A company received a $1,000,90-day,10% note receivable.The journal entry to record receipt of the note would include a debit to Notes Receivable.

The _______________________ method uses both past and current receivables to estimate the allowance amount and assumes that the longer an amount is past due,the more likely it is to be uncollectible.

The percent of sales method for estimating bad debts assumes that a given percent of a company's credit sales for the period are uncollectible.

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

On August 1,2010,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?

Writing off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

An accounting procedure that (1)estimates and reports bad debts expense from credit sales during the period of the sales and (2)reports accounts receivable at the amount of cash to be collected is the:

How does John Earle of Johnny Cupcakes,Inc.,view decisions involving sales on credit?

The maturity date of a note refers to the date the note is signed.

When a company has a high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy.

A promissory note:

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

A supplementary record created to maintain a separate account for each customer is called the ________________________.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 7: Reporting and Analyzing Receivables

If a 90-day note receivable is dated June 12,what is the maturity date of the note?

When using the allowance method of accounting for uncollectible accounts,the entry to write off Harold's uncollectible account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable - Harold.

Dell reported net sales of $8,739 million and average accounts receivable of $864 million.Its accounts receivable turnover is:

A promissory note is a written promise to pay a specified amount of money either on demand or at a definite future date.

A company received a $1,000,90-day,10% note receivable.The journal entry to record receipt of the note would include a debit to Notes Receivable.

The following information is from the annual financial statements of Nancy Company. 2010 2009 2008 Net Sales \ 307,000 \ 238,000 \ 285,000 Accounts Receivable, net (year-end) 47,900 45,700 42,400 What is the accounts receivable turnover ratio for 2010?

The _______________________ method uses both past and current receivables to estimate the allowance amount and assumes that the longer an amount is past due,the more likely it is to be uncollectible.

The percent of sales method for estimating bad debts assumes that a given percent of a company's credit sales for the period are uncollectible.

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

On August 1,2010,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?

Writing off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

An accounting procedure that (1)estimates and reports bad debts expense from credit sales during the period of the sales and (2)reports accounts receivable at the amount of cash to be collected is the:

How does John Earle of Johnny Cupcakes,Inc.,view decisions involving sales on credit?

The maturity date of a note refers to the date the note is signed.

When a company has a high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy.

A promissory note:

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

A supplementary record created to maintain a separate account for each customer is called the ________________________.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters