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Exam 9: Receivables

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Question 91

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The party promising to pay a note at maturity is the maker.

A) True
B) False

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Question 92

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Based on the following data and using a 365-day year,compute (a)the accounts receivable turnover and (b)days' sales in receivables for Year 2.Round to two decimal places.The industry average turnover is 20 times during the year,and the days' sales in receivables averages 25. (c)Comment on this situation.

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Question 93

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Match each description to the appropriate term (a-d) . Each term may be used more than once. -When using this method,estimated bad debts are added to the existing allowance balance.

If the allowance method of accounting for uncollectible receivables is used,what general ledger account is debited to write off a customer's account as uncollectible?

Fellows Corporation has determined that the $2,700 accounts receivable due from Andrew Stevens is uncollectible.Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment) ,and an analysis of accounts in the customer ledger indicates that the estimated amount of uncollectible accounts should be $16,000.Based on the estimate above,which of the following adjusting entries should be made?

The balance in Allowance for Doubtful Accounts at the end of the year includes the total of all accounts written off since the beginning of the year.

Current assets are usually listed in order

Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:​Required

Determine the due date and the amount of interest due at maturity on the following notes:​

Journalize the following transactions (assume a 360-day year when calculating interest):

Of the two methods of accounting for uncollectible receivables,the allowance method makes use of an estimate of uncollectible receivables.

When a note is written to settle an open account,no entry is necessary.

Match each description to the appropriate term (a-d) . Each term may be used more than once. -This method estimates the uncollectible accounts receivable at the end of the accounting period.

An account becomes uncollectible

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment) .The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900.Which of the following adjusting entries would be made to record the bad debt expense for the year?

An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900.If Allowance for Doubtful Accounts has a $700 credit balance,the adjustment to record the bad debt expense for the period will require a

When the allowance method for accounting for uncollectible receivables is used,net income is reduced when a specific receivable is written off.

Other receivables includes all of the following except

Although Allowance for Doubtful Accounts normally has a credit balance,it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period.