FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Receivables

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

​Jefferson uses the percent of sales method of estimating uncollectible expenses.Based on past history,2% of credit sales are expected to be uncollectible.Sales for the current year are $5,550,000.​ Which of the following is correct?

A) ​​Uncollectible accounts are estimated to be $55,500.
B) ​Uncollectible accounts are estimated to be $111,000.
C) ​Bad debt expense is estimated to be $5,550.
D) ​Bad debt expense is estimated to be $11,100.

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

The equation for computing interest on an interest-bearing note is as follows: Interest = Maturity Value × Interest Rate × Time.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

Receivables not currently collectible are reported in the investments section of the balance sheet.

Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables.On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation.Write off the $675 of accounts receivable due from Jacob Marley.

A partially completed aging of receivables schedule for Lindy Designs is shown below.Calculate the amount that is estimated to be uncollectible. ​​ (a)Determine the amount estimated to be uncollectible by completing the aging of receivables schedule.Round calculations to the nearest dollar. ​ (b)If the Allowance for Doubtful Accounts has a credit balance of $9,700,record the adjusting entry for the bad debt expense for the year. (c)If the Allowance for Doubtful Accounts has a debit balance of $9,700,record the adjusting entry for the bad debt expense for the year.

Allowance for Doubtful Accounts is a liability account.

A 60-day,12% note for $7,000,dated April 15,is received from a customer on account.The face value of the note is

For each of the following scenarios,indicate the amount of the adjusting journal entry for bad debt expense to be recorded,the balance in Allowance for Doubtful Accounts after adjustment at December 31,and the net realizable value of accounts receivable at December 31. (a)Based on an analysis of Simmon's Company's $380,000 balance in Accounts Receivable at December 31,it was estimated that $15,500 will be uncollectible.There is a credit balance of $1,200 in Allowance for Doubtful Accounts before adjustment. (b)Blake Company had credit sales of $900,000 at year-end,and has an Accounts Receivable balance of $425,000 at December 31,and an Allowance for Doubtful Accounts credit balance of $11,000 before adjustment.Blake estimates bad debt expense as 3 / 4 of 1% of credit sales. (c)Hidgon Inc.has a balance of $812,000 in Accounts Receivable at December 31.An analysis of those receivables shows $24,000 will probably not be collected.Before adjusting entries are prepared,the Allowance for Doubtful Accounts has a debit balance of $750.

When using the direct write-off method of accounting for uncollectible receivables,the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

​On the basis of the following data related to assets due within one year for Simons Co.,prepare a partial balance sheet in good form at December 31.Show total current assets.

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) ,and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000.Which of the following entries records the proper adjusting entry for bad debt expense?

Journalize the following transactions of Upton Drugs:

A company uses the allowance method to account for uncollectible accounts receivable.When the firm writes off a specific customer's account receivable

The balance in Allowance for Doubtful Accounts will directly impact the end-of-period adjustment for the bad debt expense when using which of the following methods? ​

The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles ​

Under the direct write-off method of accounting for uncollectible accounts,Bad Debts Expense is debited

When the allowance method is used to account for uncollectible accounts,Bad Debts Expense is debited when

On October 1,Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable.The note is due in six months.At December 31,Black should record interest revenue of

For the fiscal years 1 and 2,Grange Co.reported the following: ​ (a)Compute the accounts receivable turnover for Year 2.Round to two decimals. (b)Compute the number of days' sales in receivables at the end of Year 2.Round to two decimals.

Jefferson uses the percent of sales method of estimating uncollectible expenses.Based on past history,2% of credit sales are expected to be uncollectible.Sales for the current year are $5,550,000.​ Which of the following is correct regarding the entry to record estimated uncollectible receivables?