Exam 5: Receivables and Revenue

At the end of the year,Seidner Company has the following information available: The company uses the percent-of-sales method to estimate uncollectible accounts and has not prepared the year-end adjusting entry for Uncollectible-Account Expense.What does the debit balance in the Allowance for Uncollectible Accounts indicate?

For each of the following ratios, (a)provide the formula for computing the ratio, (b)state what the ratio measures and (c)discuss how the ratio is interpreted. 1.Quick Ratio 2.Accounts Receivable Turnover 3.Days' Sales Outstanding

The Watertown Bank lent Sandy's Pastry Store $40,000 on a 4 month,7% note dated May 31,2017.The fiscal year end of the bank is June 30.Round all amounts to the nearest dollar. Required: 1.Determine the due date of the note. 2.Determine the maturity value of the note. 3.Prepare the journal entries made by the bank.Omit explanations.

By selling on credit,companies run the risk of not collecting some receivables.

Under the allowance method for estimating uncollectible accounts:

Kaley Kaimainn,the controller for Supplies Unlimited has the following accounts: 1.Compute the Quick Ratio for 2018 and 2019. 2.Did the Quick Ratio improve? 3.Compute the Collection Period (Days' Sales Outstanding)for 2018 and 2019. 4.Did the Collection Period improve?

The Allowance for Uncollectible Accounts is classified as:

Nichols Company has shipped goods to one of its customers FOB shipping point.Nichols Company will recognize sales revenue when:

Under the direct write-off method,what journal entry is prepared when an account is determined to be worthless or uncollectible?

Journalize the following transactions for The Computer Store.The Computer Store uses the allowance method of accounting for uncollectible receivables.Ignore Cost of Goods Sold Explanations are not required.

Smart Company sells office furniture for $3,000 and the customer pays with a VISA card.VISA's fee is 2.5%.Prepare the journal entry for the sale,ignoring cost of goods sold.No sales returns are expected.Omit the explanation.

The aging-of-receivables method of estimating uncollectible accounts is:

On December 2,a customer returned merchandise,with a selling price of $1,400 purchased on account,to a department store.Ignoring cost of goods sold,which journal entry should the department store prepare? Assume no discounts were offered.

Step 3 of the revenue recognition model requires that the seller set the price of the sale at the amount the seller expects to receive from the customer.

Interest rates are always for an annual period unless stated otherwise.

Smith Company returned $20,000 of inventory to us that was sold on account.Journalize the entries to record the return assuming Cost of Goods Sold is 40% of Sales and all returned inventory is returned to inventory.

For retailers,a way to speed up cash collections is:

The entry to write off an Account Receivable under the allowance method:

Estimates are NOT used to record uncollectible accounts expense when using the ________ method.

On December 1,Macy Company sold merchandise with a selling price of $9,000 on account to Mrs.Jorgensen,with terms 4/10,n/30.On December 3,Mrs.Jorgensen returned merchandise with a selling price of $700.Mrs.Jorgensen paid the amount due on December 9.What journal entry did Macy Company prepare on December 9 assuming the gross method is used?