Question 1

Jordan Co.uses the allowance method of accounting for uncollectible accounts.Jordan Co.accepted a $5,000,12%,90-day note dated May 16,from Beckam Co.in exchange for its past-due account receivable.Make the necessary general journal entries for Jordan Co.on May 16 and the August 14 maturity date,assuming that the:
a.Note is held until maturity and collected in full at that time.
b.Note is dishonored;the amount of the note and its interest are written off as uncollectible.

Accepted Answer

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

Question 2

Mullis Company sold merchandise on account to a customer for $625,terms n/30.The journal entry to record this sale transaction would be:

Accepted Answer

A)  Debit Cash of $625 and credit Sales $625.
B)  Debit Cash of $625 and credit Accounts Receivable $625.
C)  Debit Accounts Receivable $625 and credit Sales $625.
D)  Debit Accounts Receivable $625 and credit Cash $625.
E)  Debit Sales $625 and credit Accounts Receivable $625.F) B) and E)
G) D) and E)

Question 3

____________________________ are amounts owed by customers from credit sales where payment is required in periodic amounts over an extended time period.

Accepted Answer

Installmen...

Question 4

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the:

Accepted Answer

A)  Direct write-off method.
B)  Aging of accounts receivable method.
C)  Percentage of sales method.
D)  Aging of investments method.
E)  Percent of accounts receivable method.F) A) and E)
G) C) and D)

Question 5

On February 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Accepted Answer

A)  Debit Bad Debts Expense $2,300;credit Accounts Receivable $2,300.
B)  Debit Allowance for Doubtful Accounts $2,300;credit Bad Debts Expense $2,300.
C)  Debit Allowance for Doubtful Accounts $2,300;credit Accounts Receivable $2,300.
D)  Debit Bad Debts Expense $2,300;credit Allowance for Doubtful Accounts $2,300.
E)  Debit Accounts Receivable $250;credit Allowance for Doubtful Accounts $2,300.F) A) and B)
G) D) and E)

Question 6

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.If the note is dishonored,what entry should Uniform Supply make on January 15 of the next year?

Accepted Answer

A)  Debit Notes Receivable $4,800;debit Interest Receivable $120;credit Sales $4,920.
B)  Debit Cash $4,920;credit Notes Receivable $4,920.
C)  Debit Cash $4,920;credit Interest Revenue $100;credit Interest Receivable $20,credit Notes Receivable $4,800.
D)  Debit Cash $4,920;credit Interest Revenue $20;credit Interest Receivable $100,credit Notes Receivable $4,800.
E)  Debit Accounts Receivable $4,920;credit Interest Revenue $20;credit Interest Receivable $100,credit Notes Receivable $4,800.F) B) and D)
G) All of the above

Question 7

Woods Co.accepts the World Express credit card from its customers.World Express charges a 3.5% service fee and pays Woods the amount net of World Express charges once a month.During February,Woods sold $24,000 worth of merchandise to customers using the World Express charge card.On February 28,Woods sent the $24,000 worth of credit card receipts to World Express.On March 4,Woods received cash proceeds from World Express for the February credit sales less the service charge.Prepare the journal entries to record February sales and the March 4 cash receipt.

Accepted Answer

The answer of Woods Co.accepts the World Express credit card...

Question 8

Jervis accepts all major bank credit cards,including those issued by Northern Bank (NB) ,which assesses a 3% charge on sales for using its card.On June 28,Jervis had $3,500 in NB Card credit sales.What entry should Jervis make on June 28 to record the deposit?

Accepted Answer

A)  Debit Cash $3,500;credit Sales $3,500
B)  Debit Accounts Receivable $3,500;credit Sales $3,500
C)  Debit Cash $3,605;credit Credit Card Expense $105;credit Sales $3,500
D)  Debit Cash $3,395;debit Credit Card Expense $105;credit Sales $3,500
E)  Debit Accounts Receivable $3,395;debit Credit Card Expense $105;credit Sales $3,500F) B) and E)
G) C) and D)

Question 9

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

Accepted Answer

A)  Debit Accounts Receivable $7,800;credit Sales $7,800
B)  Debit Accounts Receivable $7,904;credit Sales $7,904
C)  Debit Notes Receivable $7,800;credit Sales $7,800
D)  Debit Notes Receivable $7,904;credit Sales $7,904
E)  Debit Notes Receivable $7,800;debit Interest Receivable $104;credit Sales $7,904F) B) and E)
G) All of the above

Question 10

At December 31 of the current year,a company reported the following:
Total sales for the current year: $980,000 includes $160,000 in cash sales
Accounts receivable balance at Dec.31,end of current year: $160,000
Allowance for Doubtful Accounts balance at January 1,beginning of current year: $7,300 credit
Bad debts written off during the current year: $5,800.
Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal 5% of accounts receivable.

Accepted Answer

The answer of At December 31 of the current year,a...

Question 11

A company ages its accounts receivables to determine its end of period adjustment for bad debts.At the end of the current year,management estimated that $15,750 of the accounts receivable balance would be uncollectible.Prior to any year-end adjustments,the Allowance for Doubtful Accounts had a debit balance of $375.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Accepted Answer

A)   
B)   
C)   
D)   E) A) and B)
F) All of the above

Question 12

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off,the entry to record the write-off against the allowance account results in:

Accepted Answer

A)  An increase in the expenses of the current period.
B)  A reduction in current assets.
C)  A reduction in equity.
D)  No effect on the expenses of the current period.
E)  A reduction in current liabilities.F) A) and E)
G) A) and D)

Question 13

To write off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

Accepted Answer

allowance ...

Question 14

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the collection on the maturity date is:

Accepted Answer

A)  Debit Cash $7,800;credit Accounts Receivable $7,800
B)  Debit Accounts Receivable $7,904;credit Notes Receivable $7,800;credit Interest Receivable $104
C)  Debit Notes Receivable $7,800;credit Cash $7,904;credit Interest Revenue $104
D)  Debit Cash $7,904;credit Notes Receivable $7,800;credit Interest Revenue $104
E)  Debit Cash $7,904;credit Notes Receivable $7,904F) C) and E)
G) A) and E)

Question 15

The maturity date of a note receivable:

Accepted Answer

A)  Is the day of the credit sale.
B)  Is the day the note was signed.
C)  Is the day the note is due to be repaid.
D)  Is the date of the first payment.
E)  Is the last day of the month.F) B) and D)
G) None of the above

Question 16

Brinker accepts all major bank credit cards,including First Savings Bank's,which assesses a 2.5% charge on sales for using its card.On May 26,Brinker had $4,800 in First Savings Bank Card credit sales.What entry should Brinker make on May 26 to record the deposit?

Accepted Answer

A)  Debit Accounts Receivable $4,800;credit Sales $4,800.
B)  Debit Cash $4,680;debit Credit Card Expense $120;credit Sales $4,800.
C)  Debit Cash $4,800;credit Sales $4,800.
D)  Debit Cash $4,920;credit Credit Card Expense $120;credit Sales $4,800.
E)  Debit Accounts Receivable $4,680;debit Credit Card Expense $120;credit Sales $4,800.F) None of the above
G) All of the above

Question 17

The _________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible (and not before).

Accepted Answer

The answer of The _________________ method of accounting for bad...

Question 18

The person to whom a note is payable is known as the ______________.

Accepted Answer

The answer of The person to whom a note is...

Question 19

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on December 31,to record the accrued interest on the note?

Accepted Answer

A)  Debit Cash $20;credit Notes Receivable $20.
B)  Debit Cash $100;credit Notes Receivable $100.
C)  Debit Interest Receivable $20;credit Interest Revenue $20.
D)  Debit Interest Receivable $100;credit Interest Revenue $100.
E)  Debit Cash $120;credit Interest Revenue $100;credit Interest Receivable $20.F) None of the above
G) B) and C)

Question 20

The allowance method based on the idea that a given percent of a company's credit sales for the period is uncollectible is:

Accepted Answer

A)  The percent of sales method.
B)  The percent of accounts receivable method.
C)  The aging of accounts receivable method.
D)  Direct write-off method.
E)  Factoring method.F) B) and D)
G) None of the above

Exam 9: Accounting for Receivables

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.If the note is dishonored,what entry should Uniform Supply make on January 15 of the next year?

Correct Answer
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The _________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible (and not before).

Correct Answer
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Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

Correct Answer
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The person to whom a note is payable is known as the ______________.

Correct Answer
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Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on December 31,to record the accrued interest on the note?

Correct Answer
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If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off,the entry to record the write-off against the allowance account results in:

Correct Answer
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To write off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

Correct Answer
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allowance ...
View Answer

Correct Answer
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A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the:

Correct Answer
verified

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the collection on the maturity date is:

Correct Answer
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The maturity date of a note receivable:

Correct Answer
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____________________________ are amounts owed by customers from credit sales where payment is required in periodic amounts over an extended time period.

Correct Answer
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Installmen...
View Answer

Jervis accepts all major bank credit cards,including those issued by Northern Bank (NB) ,which assesses a 3% charge on sales for using its card.On June 28,Jervis had $3,500 in NB Card credit sales.What entry should Jervis make on June 28 to record the deposit?

Correct Answer
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Correct Answer
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Mullis Company sold merchandise on account to a customer for $625,terms n/30.The journal entry to record this sale transaction would be:

Correct Answer
verified

Brinker accepts all major bank credit cards,including First Savings Bank's,which assesses a 2.5% charge on sales for using its card.On May 26,Brinker had $4,800 in First Savings Bank Card credit sales.What entry should Brinker make on May 26 to record the deposit?

Correct Answer
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Correct Answer
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On February 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Correct Answer
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Correct Answer
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The allowance method based on the idea that a given percent of a company's credit sales for the period is uncollectible is:

Correct Answer
verified

Exam 9: Accounting for Receivables

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.If the note is dishonored,what entry should Uniform Supply make on January 15 of the next year?

Correct AnswerverifiedShow Answer

The _________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible (and not before).

Correct AnswerverifiedShow Answer

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

Correct AnswerverifiedShow Answer

The person to whom a note is payable is known as the ______________.

Correct AnswerverifiedShow Answer

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on December 31,to record the accrued interest on the note?

Correct AnswerverifiedShow Answer

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off,the entry to record the write-off against the allowance account results in:

Correct AnswerverifiedShow Answer

To write off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used,a company should debit _______________________ and credit accounts receivable.

Correct Answerverifiedallowance ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the:

Correct AnswerverifiedShow Answer

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the collection on the maturity date is:

Correct AnswerverifiedShow Answer

The maturity date of a note receivable:

Correct AnswerverifiedShow Answer

____________________________ are amounts owed by customers from credit sales where payment is required in periodic amounts over an extended time period.

Correct AnswerverifiedInstallmen...View AnswerShow Answer

Jervis accepts all major bank credit cards,including those issued by Northern Bank (NB) ,which assesses a 3% charge on sales for using its card.On June 28,Jervis had $3,500 in NB Card credit sales.What entry should Jervis make on June 28 to record the deposit?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mullis Company sold merchandise on account to a customer for $625,terms n/30.The journal entry to record this sale transaction would be:

Correct AnswerverifiedShow Answer

Brinker accepts all major bank credit cards,including First Savings Bank's,which assesses a 2.5% charge on sales for using its card.On May 26,Brinker had $4,800 in First Savings Bank Card credit sales.What entry should Brinker make on May 26 to record the deposit?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On February 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The allowance method based on the idea that a given percent of a company's credit sales for the period is uncollectible is:

Correct AnswerverifiedShow Answer

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allowance ...
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Installmen...
View Answer

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