Exam 5: Receivables and Revenue

On December 31,2019,Sandy Company has a Note Receivable of $9,000.The note will be collected in installments.$1,800 is due on December 31,2020 and $1,800 is due every year after December 31,2020.The classification of the note on Sandy Company's balance sheet at December 31,2019 is:

Ratios are used only by company management,and not investors,to evaluate the financial health of a company.

On December 31 of the current year,James Company has an accounts receivable balance of $319,000 before any year-end adjustments.The Allowance for Doubtful Accounts has a $1,400 credit balance.The company prepares the following aging schedule for accounts receivable: What is the Uncollectible-Account Expense at December 31 of the current year after adjustments?

The typical credit cycle for most sales on account is 30 days.

During its first year of operations,Ness Company had the following transactions.The company uses the percent-of-sales method to estimate uncollectible accounts. Required: Prepare all journal entries for these transactions.Explanations are not required.Ignore Cost of Goods Sold.

What amount does a company expect to collect from Accounts Receivable?

When calculating the denominator for the quick ratio,you would NOT include:

When journalizing for the estimated sales returns,there would be a debit to:

Jones Company historical expenses show that 2% of the items it sells are returned.If sales revenue is expected to be $100,000 for the current year and Cost of Goods Sold is 40% of sales,what are the journal entries to record the estimated expected future returns.

A typical sales discount might be stated as 2/10,n/30.This expression means that the seller is willing to discount the order by 10% if the buyer pays the invoice within 2 days of the invoice date.

The principal amount of a note is the amount lent by the debtor and borrowed by the creditor.

Leno Company sells goods to the Fallon Company for $11,000.It offers credit terms of 3/10,n/30.If Fallon Company pays the invoice within the discount period,Leno Company will record a debit to Cash in the amount of:

Using the percentage-of-sales method,the estimated total uncollectible accounts are $7,122.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $3,135.The Accounts Receivable balance is $44,820.The amount of the adjusting entry for Uncollectible-Accounts Expense is:

Under the allowance method,companies are not allowed to use different methods to estimate Uncollectible-Account Expense.

The net realizable value of accounts receivable is the difference between gross accounts receivable and:

Which of the following is a CORRECT statement regarding the direct write-off method for uncollectible accounts?

A three months,12% note for $17,000,dated April 15,is received from a customer.The maturity value of the note is:

If the collection period of a company is 30 days,and the average receivables are $83,000 what is the total amount of the credit sales? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar. )

The comparative financial statements of Walters Company for 2019,2018,and 2017 contain the following selected data: Compute the following ratios for 2019 and 2018 and indicate which ratios improved and which ratios deteriorated: a.Quick ratio b.Days' sales outstanding

On May 1,2019,Mary Smith signed a $10,000 promissory note with Continental Bank.The note is due in one year with 7% interest.What journal entry should Continental Bank prepare on May 1,2019?