Question 1

An alternative name for Bad Debt Expense is

Accepted Answer

A)  Collection Expense
B)  Credit Loss Expense
C)  Uncollectible Accounts Expense
D)  Deadbeat ExpenseE) A) and B)
F) A) and C)

Question 2

The maturity value of a note receivable is always the same as its face value.

Accepted Answer

A) True 
 B)False

Question 3

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

Accepted Answer

A)  liabilities decrease
B)  net income is unchanged
C)  total assets are unchanged
D)  total assets decreaseE) B) and C)
F) A) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The operating expense recorded from uncollectible receivables can be called all of the following except​

Accepted Answer

A)  ​Accounts Receivable
B)  Bad Debt Expense
C)  Doubtful Accounts Expense
D)  ​Uncollectible Accounts ExpenseE) B) and C)
F) A) and D)

Question 6

When a company uses the allowance method of accounting for uncollectible receivables,which entry would not be found in the general journal?

Accepted Answer

A)  Bad Debt Expense 500Allowance for Doubtful Accounts 500
B)  Bad Debt Expense 500Accounts Receivable-Bob Smith 500
C)  Cash 300Allowance for Doubtful Accounts 200Accounts Receivable-Bob Smith 500
D)  Cash 500Accounts Receivable-Bob Smith 500E) All of the above
F) None of the above

Question 7

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

Accepted Answer

A)  $6,860
B)  $7,140
C)  $7,840
D)  $7,000E) B) and C)
F) A) and D)

Question 8

Which statement is not true?

Accepted Answer

A)  Current assets are normally reported in order of their liquidity.
B)  Disclosures related to receivables are reported in the financial statement notes.
C)  Cash and cash equivalents are the first items reported under Current assets.
D)  All receivables that are expected to be realized in cash beyond 265 days are reported in the Noncurrent assets section.E) A) and B)
F) A) and C)

Question 9

Match each description to the appropriate term (a-i) .
-A receivable created from selling merchandise or services on account

Accepted Answer

A)  Accounts receivable turnover
B)  Net realizable value
C)  Accounts receivable
D)  Aging the receivables
E)  ReceivablesF) Direct write-off methodG) Allowance for doubtful accountsH) Bad debt expenseI) Notes receivableJ) F) and G)
K) A) and D)

Question 10

The maturity value of a $40,000,9%,40-day note receivable dated July 3 is

Accepted Answer

A)  $40,000
B)  $40,400
C)  $43,600
D)  $44,000E) None of the above
F) All of the above

Question 11

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense?

Accepted Answer

A)  debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
B)  debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000
C)  debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
D)  debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800E) A) and B)
F) None of the above

Question 12

A company is selling its receivables when it issues its own credit card.

Accepted Answer

A) True 
 B)False

Question 13

The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Accepted Answer

A) True 
 B)False

Question 14

At the end of a period 
(before adjustment),Allowance for Doubtful Accounts has a credit balance of $250.The credit sales for the period total $500,000.If the company estimates uncollectible accounts expense at 1% of credit sales,the amount of bad debt expense to be recorded in an adjusting entry is $4,750.

Accepted Answer

A) True 
 B)False

Question 15

The journal entry to record a note received from a customer to replace an account is

Accepted Answer

A)  debit Notes Receivable; credit Accounts Receivable
B)  debit Accounts Receivable; credit Notes Receivable
C)  debit Cash; credit Notes Receivable
D)  debit Notes Receivable; credit Notes PayableE) A) and B)
F) All of the above

Question 16

Match each description to the appropriate term (a-h) .
-The amount charged for using the money of another party

Accepted Answer

A)  Face amount
B)  Term
C)  Interest
D)  Maturity value
E)  Dishonored noteF) MakerG) Notes receivableH) Interest rateI) C) and G)
J) E) and H)

Question 17

The accounts receivable turnover measures the length of time in days it takes to collect a receivable.

Accepted Answer

A) True 
 B)False

Question 18

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Accepted Answer

A) True 
 B)False

Question 19

A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

Accepted Answer

A)  debit Cash, $6,120; credit Notes Receivable, $6,120
B)  debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Receivable, $120
C)  debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060
D)  debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Revenue, $120E) C) and D)
F) A) and B)

Question 20

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

Accepted Answer

The answer of For fiscal Year 1 and Year 2,Grange...

Exam 9: Receivables

The maturity value of a $40,000,9%,40-day note receivable dated July 3 is

Correct Answer
verified

A company is selling its receivables when it issues its own credit card.

Correct Answer
verified

The accounts receivable turnover measures the length of time in days it takes to collect a receivable.

Correct Answer
verified

Match each description to the appropriate term (a-i) . -A receivable created from selling merchandise or services on account

Correct Answer
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Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense?

Correct Answer
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Correct Answer
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The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Correct Answer
verified

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Correct Answer
verified

The journal entry to record a note received from a customer to replace an account is

Correct Answer
verified

An alternative name for Bad Debt Expense is

Correct Answer
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Which statement is not true?

Correct Answer
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A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

Correct Answer
verified

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

Correct Answer
verified

Match each description to the appropriate term (a-h) . -The amount charged for using the money of another party

Correct Answer
verified

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

Correct Answer
verified

When a company uses the allowance method of accounting for uncollectible receivables,which entry would not be found in the general journal?

Correct Answer
verified

The operating expense recorded from uncollectible receivables can be called all of the following except

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The maturity value of a note receivable is always the same as its face value.

Correct Answer
verified

Exam 9: Receivables

The maturity value of a $40,000,9%,40-day note receivable dated July 3 is

Correct AnswerverifiedShow Answer

A company is selling its receivables when it issues its own credit card.

Correct AnswerverifiedShow Answer

The accounts receivable turnover measures the length of time in days it takes to collect a receivable.

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-i) . -A receivable created from selling merchandise or services on account

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) ,and an analysis of customers' accounts indicates uncollectible receivables of $12,900.Which of the following entries records the proper adjustment for bad debt expense?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The accounts receivable turnover ratio is computed by dividing total gross sales by the average net receivables during the year.

Correct AnswerverifiedShow Answer

The maturity value of a 12%,60-day note for $5,000 is $5,600.

Correct AnswerverifiedShow Answer

The journal entry to record a note received from a customer to replace an account is

Correct AnswerverifiedShow Answer

An alternative name for Bad Debt Expense is

Correct AnswerverifiedShow Answer

Which statement is not true?

Correct AnswerverifiedShow Answer

A $6,000,60-day,12% note recorded on November 21 is not paid by the maker at maturity.The journal entry to recognize this event is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-h) . -The amount charged for using the money of another party

Correct AnswerverifiedShow Answer

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts

Correct AnswerverifiedShow Answer

When a company uses the allowance method of accounting for uncollectible receivables,which entry would not be found in the general journal?

Correct AnswerverifiedShow Answer

The operating expense recorded from uncollectible receivables can be called all of the following except​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The maturity value of a note receivable is always the same as its face value.

Correct AnswerverifiedShow Answer

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The operating expense recorded from uncollectible receivables can be called all of the following except

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

Correct Answer
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Correct Answer
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