FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Receivables

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

Match each description to the appropriate term (a-i) . -Records bad debt expense only when a specific customer's account is deemed worthless

A) Accounts receivable turnover
B) Net realizable value
C) Accounts receivable
D) Aging the receivables
E) Receivables
F) Direct write-off method
G) Allowance for doubtful accounts
H) Bad debt expense
I) Notes receivable

J) A) and G)
K) B) and G)

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Other receivables includes all of the following except

A) notes receivable
B) receivables from employees
C) taxes receivable
D) interest receivable

E) A) and B)
F) A) and D)

Correct Answer

verified

Show Answer

Question 93

Essay

Review LaterAdd Note

Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. (Assume a 360-day year when calculating interest.) (a) Determine the due date of the note. (b) Determine the interest. (c) Determine the maturity value of the note. (d) Journalize the entry to record the receipt of the note from Potts on February 3. (e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

A primary difference between the direct write-off and allowance methods is whether or not bad debt is based on a percentage of sales.

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

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?

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal? a. Bad Debt Expense $\quad 500$ Allowance for Doubtful Accounts 500 b. Bad Debt Expense $\quad 500$ Accounts Receivable-Bob Smith 500 c. Cash 300 Allowance for Doubtful Accounts 200 Accounts Receivable-Bob Smith $\quad 500$ $\begin{array}{lr}d. Cash &500\\~~~~\text { Accounts Receivable-Bob Smith }&500\end{array}$

The due date of a 60-day note dated July 10 is September 10.

Match each description to the appropriate term (a-d) . Each term may be used more than once. -This method focuses on the balance sheet.

Match each description to the appropriate term (a-h) . -A formal, written instrument of credit that represents amounts due from customers

​GAAP requires companies with a large amount of receivables to use the allowance method.

​No allowance account is used with the direct write-off method.

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

The term "receivables" includes all

The receivable that is usually evidenced by a formal, written instrument of credit is a (n)

One of the weaknesses of the direct write-off method is that it

List at least three indicators that a receivable may be uncollectible.

Match each description to the appropriate term (a-d) . Each term may be used more than once. -This method focuses on the income statement.

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?

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.