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Exam 9: Receivables

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Question 41

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Match each description to the appropriate term (a-i) . -Operating expense recorded as a result of receivables becoming uncollectible

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) F) and I)
K) B) and H)

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Question 42

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Financial statement data for the years ended December 31 for Parker Corporation are as follows:​Current Year Prior YearSales $2,595,600 $2,409,500Accounts receivable:Beginning of year 390,000 400,000End of year 434,000 390,000​ (a) Determine the accounts receivable turnover for each year.Round to one decimal place. (b) Determine the days' sales in receivables for each year.Round to whole days. (c) Does the change in accounts receivable turnover and days' sales in receivables fromthe first year to the second year indicate a favorable or unfavorable trend?

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(a) Accounts receivable turnover: (c) T...

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Question 43

Multiple Choice

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After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000.What is the net realizable value of accounts receivable?

Lowery Co.uses the direct write-off method of accounting for uncollectible accounts receivable.Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible.The entry to write off this account would be

Fill in the blanks related to the characteristics of a promissory note.1.The party promising to pay the note is called the ________.2.The amount for which the note is written is called the _______ amount.3.The date the note is to be paid is the _______ date.4.The time between the date when a note is written and the time it must be paid is called the _____ of the note.

Abbott Company uses the allowance method of accounting for uncollectible accounts.Abbott estimates that 3% of credit sales will be uncollectible.On January 1,Allowance for Doubtful Accounts had a credit balance of $2,400.During the year,Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns during the year.After the adjusting entry,the December 31 balance in Bad Debt Expense will be

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

When an account receivable that has been written off is subsequently collected,the account receivable must first be reinstated before recording the receipt of payment.

Match each description to the appropriate term (a-h) . -The amount due that must be paid at the due date of a note receivable

Match each description to the appropriate term (a-d) . Each term may be used more than once. -This method is based on the theory that older accounts are less likely to be collected.

The direct write-off method records bad debt expense when an account is determined to be uncollectible.

A note receivable due in 18 months is listed on the balance sheet under the caption

Allowance for Doubtful Accounts is classified as a (n) ______ account and has a normal ______ balance.​

The amount for which a promissory note is written is called the

Match each description to the appropriate term (a-i) . -A contra asset that represents the amount of estimated uncollectible receivables

The two methods of accounting for uncollectible receivables are the allowance method and the

On the balance sheet,the amount shown for Allowance for Doubtful Accounts is equal to the

The difference between the balance in Accounts Receivable and the balance in Allowance for Doubtful Accounts is called the net realizable value of the receivables.

When a note is received from a customer on account,it is recorded by debiting Notes Receivable and crediting Accounts Receivable.

A 60-day,9% note for $10,000,dated May 1,is received from a customer on account.The maturity value of the note is