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Exam 8: Receivables

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Question 61

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Discuss the 1) focus and 2) financial statement emphasis of a) the percent of sales and b) the analysis of receivables methods of estimating bad debts.

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a) Bad debt expense is the focus of the ...

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Question 62

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

A) $40,000
B) $40,400
C) $43,600
D) $44,000

E) A) and C)
F) B) and C)

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Question 63

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

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000. Determine a) the amount of the adjusting entry for bad debt expense; b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and c) the net realizable value of accounts receivable.

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

For each of the following notes receivables held by Winter Company, determine the interest revenue to be reported on the income statements. Round answers to nearest whole dollar.

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

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

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

Match each description to the appropriate term a-d) . Each term may be used more than once. -With this method, there is no allowance 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

Match each description to the appropriate term a-i) . -A list of customer accounts sorted by age classes

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account. a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity.

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

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000. Determine the net realizable value of accounts receivable after adjustment. Hint: Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance of Doubtful Accounts.)

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year before adjustment) . The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

For each of the following notes receivables held by Christensen Company determine the interest revenue to be reported on the income statements for the year ended December 31. Round answers to nearest whole dollar.

A partially competed 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.

Selling receivables is called