Question 1

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

Accepted Answer

September 10

Question 2

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

Accepted Answer

A)  10.1. 
B)  9.9. 
C)  36.1. 
D)  9.1. 
E)  12.8. 
A)  10.1. 
B)  9.9. 
C)  36.1. 
D)  9.1. 
E)  12.8. A

Question 3

How are the direct write-off and allowance methods applied to accounting for uncollectible receivables?

Accepted Answer

The direct write-off method charges Bad Debt Expense when individual accounts receivable are determined to be uncollectible.Under the allowance method,estimated bad debt expense is recorded at the end of each accounting period by debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts.Individual uncollectible accounts are later written off with a debit to Allowance for Doubtful Accounts.

Question 4

A high accounts receivable turnover rate in comparison with that of competitors' suggests that the firm should tighten its credit policy.

Accepted Answer

A) True 
 B)False

Question 5

Accounts receivable accounts for specific customers are important because they show:

Accepted Answer

A)  How much each customer purchases. 
B)  How much each customer has paid. 
C)  How much each customer still owes. 
D)  The basis for sending bills to customers. 
E)  All of these answers are correct. 
A)  How much each customer purchases. 
B)  How much each customer has paid. 
C)  How much each customer still owes. 
D)  The basis for sending bills to customers. 
E)  All of these answers are correct.

Question 6

TechCom received a $1,000,90-day,10% note receivable from Danny Outlaw.The journal entry to record the note includes a debit to notes receivable.

Accepted Answer

A) True 
 B)False

Question 7

Interest on $8,400 at 7% for 60 days is:

Accepted Answer

A)  $36.45 
B)  $41.42 
C)  $52.65. 
D)  $65.25. 
E)  $96.66. 
A)  $36.45 
B)  $41.42 
C)  $52.65. 
D)  $65.25. 
E)  $96.66.

Question 8

TechCom has net sales of $435,000 and average accounts receivable of $87,000.What is the accounts receivable turnover for the period?

Accepted Answer

A)  5. 
B)  73. 
C)  65. 
D)  95 
E)  105. 
A)  5. 
B)  73. 
C)  65. 
D)  95 
E)  105.

Question 9

Stiller Company uses the allowance method to account for bad debts.
In the first year of operations (2014),Stiller sold $540,000 of merchandise on credit,including a $2,500 sale to Bubba Long.On December 31,2014,it provided an addition to its allowance for doubtful accounts equal to 1.8% of its credit sales.On June 1,2015,Stiller wrote off as uncollectible the $2,500 account of Bubba Long; and on December 25,2015 Bubba Long unexpectedly paid his account in full.
Prepare the journal entries that Stiller Company should make:
(a)On December 31,2014,to increase the allowance for doubtful accounts.
(b)On June 1,2015,to write off the bad debt.
(c)On December 25,2015,to record the unexpected collection from Bubba Long.

Accepted Answer

The answer of Stiller Company uses the allowance method to...

Question 10

Accounts receivable turnover shows how often a company converts its average accounts receivable balance into cash during the period.

Accepted Answer

A) True 
 B)False

Question 11

Zero Co.uses the allowance method of accounting for bad debts.Their Allowance for Doubtful Accounts has a year-end credit balance,prior to adjustment,of $650.The bad debts are estimated at 3% of $560,000,the net credit sales.Prepare the year end adjusting journal entry for bad debt expense.

Accepted Answer

The answer of Zero Co.uses the allowance method of accounting...

Question 12

What is the purpose of the days' sales uncollected ratio?

Accepted Answer

The days' sales uncollected ratio is a l

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

TechCom has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The amount of bad debt expense is $17,500.

Accepted Answer

A) True 
 B)False

Question 15

Describe accounts receivable and how they are recorded into the accounting system.

Accepted Answer

Accounts receivable arise from sales to

Question 16

Z-Mart had net sales of $31,500 and accounts receivable of $2,700.To one decimal,Z-Mart's days' sales uncollected was:

Accepted Answer

A)  11.7. 
B)  23.3. 
C)  28.6 
D)  31.3. 
E)  46.6. 
A)  11.7. 
B)  23.3. 
C)  28.6 
D)  31.3. 
E)  46.6.

Question 17

If the allowance method is used,the journal entry to record the reinstatement of an account previously written off in the current period includes a debit to Accounts Receivable and a credit to Bad Debt Expense.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The accounting principle that requires financial statements to report all contingent liabilities is called:

Accepted Answer

A)  Relevance. 
B)  Evaluation. 
C)  Full disclosure. 
D)  Materiality. 
E)  Matching. 
A)  Relevance. 
B)  Evaluation. 
C)  Full disclosure. 
D)  Materiality. 
E)  Matching.

Question 20

The buyer who pays cash for accounts receivable is called:

Accepted Answer

A)  Payor. 
B)  Pledgor. 
C)  Factor. 
D)  Payee. 
E)  Pledgee. 
A)  Payor. 
B)  Pledgor. 
C)  Factor. 
D)  Payee. 
E)  Pledgee.

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

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

How are the direct write-off and allowance methods applied to accounting for uncollectible receivables?

A high accounts receivable turnover rate in comparison with that of competitors' suggests that the firm should tighten its credit policy.

Accounts receivable accounts for specific customers are important because they show:

TechCom received a $1,000,90-day,10% note receivable from Danny Outlaw.The journal entry to record the note includes a debit to notes receivable.

Interest on $8,400 at 7% for 60 days is:

TechCom has net sales of $435,000 and average accounts receivable of $87,000.What is the accounts receivable turnover for the period?

Accounts receivable turnover shows how often a company converts its average accounts receivable balance into cash during the period.

Zero Co.uses the allowance method of accounting for bad debts.Their Allowance for Doubtful Accounts has a year-end credit balance,prior to adjustment,of $650.The bad debts are estimated at 3% of $560,000,the net credit sales.Prepare the year end adjusting journal entry for bad debt expense.

What is the purpose of the days' sales uncollected ratio?

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

TechCom has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The amount of bad debt expense is $17,500.

Describe accounts receivable and how they are recorded into the accounting system.

Z-Mart had net sales of $31,500 and accounts receivable of $2,700.To one decimal,Z-Mart's days' sales uncollected was:

If the allowance method is used,the journal entry to record the reinstatement of an account previously written off in the current period includes a debit to Accounts Receivable and a credit to Bad Debt Expense.

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

The accounting principle that requires financial statements to report all contingent liabilities is called:

The buyer who pays cash for accounts receivable is called:

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Filters

Exam 9: Receivables

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

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

How are the direct write-off and allowance methods applied to accounting for uncollectible receivables?

A high accounts receivable turnover rate in comparison with that of competitors' suggests that the firm should tighten its credit policy.

Accounts receivable accounts for specific customers are important because they show:

TechCom received a $1,000,90-day,10% note receivable from Danny Outlaw.The journal entry to record the note includes a debit to notes receivable.

Interest on $8,400 at 7% for 60 days is:

TechCom has net sales of $435,000 and average accounts receivable of $87,000.What is the accounts receivable turnover for the period?

Accounts receivable turnover shows how often a company converts its average accounts receivable balance into cash during the period.

Zero Co.uses the allowance method of accounting for bad debts.Their Allowance for Doubtful Accounts has a year-end credit balance,prior to adjustment,of $650.The bad debts are estimated at 3% of $560,000,the net credit sales.Prepare the year end adjusting journal entry for bad debt expense.

What is the purpose of the days' sales uncollected ratio?

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

TechCom has sales of $350,000 and estimates that 0.5% of its sales are uncollectible.The amount of bad debt expense is $17,500.

Describe accounts receivable and how they are recorded into the accounting system.

Z-Mart had net sales of $31,500 and accounts receivable of $2,700.To one decimal,Z-Mart's days' sales uncollected was:

If the allowance method is used,the journal entry to record the reinstatement of an account previously written off in the current period includes a debit to Accounts Receivable and a credit to Bad Debt Expense.

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

The accounting principle that requires financial statements to report all contingent liabilities is called:

The buyer who pays cash for accounts receivable is called:

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Filters