Receivables are frequently classified as: accounts receivable, company receivables, and other receivables accounts receivable and general receivables accounts receivable, notes receivable, and employee receivables accounts receivable, notes receivable, and other receivables

accounts receivable, notes receivable, and other receivables

Good Stuff Retailers accepted $50,000 of Citibank Visa credit card charges. Citibank charges 4% for its credit card use. What is the entry to record this transaction? Accounts Receivable $48,000 and Service Charge Expense $2,000 Cash $50,000 Cash $48,000 and Service Charge Expense $2,000 Accounts Receivable $50,000

Cash $48,000 and Service Charge Expense $2,000

One of the following statements about promissory notes is incorrect. Which one is it? The party making the promise to pay is called the maker. A promissory note is often required from high-risk customers. A promissory note is not a negotiable instrument. The party to whom payment is to be made is called the payee.

A promissory note is not a negotiable instrument.

Comprehensive Financial Accounting Concepts and Applications

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Finance - Personal Finance

charlotte1oxhi Created by 10 mon ago

Cards in this deck(42)

A receivable that is evidenced by a formal instrument and that normally requires the payment of interest is a(n):

Receivables are frequently classified as:

Hughes Company has a credit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments. If $60,000 of its receivables are estimated to be uncollectible, what is the bad debt expense reported for the year?

Hughes Company has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments. If $60,000 of its receivables are estimated to be uncollectible, what is the bad debt expense reported for the year?

Net credit sales for the month are $800,000, and the accounts receivable balance is $160,000. If the allowance is calculated as 7.5% of the receivables balance, what is the balance of Allowance for Doubtful Accounts after adjustment?

Patterson Wholesale Company had net credit sales of $750,000 in 2022. If the accounts receivable balance was $200,000 and the allowance should be 10% of this balance, what is the required adjustment to Allowance for Doubtful Accounts on December 31, 2022?

Prince Company's accounts receivable is $800,000, with an allowance for doubtful accounts of $50,000 before adjustment. If $65,000 is expected to be uncollectible, what is the cash realizable value of the accounts receivable on December 31?

Which of the following statements about Visa credit card sales is incorrect?

Good Stuff Retailers accepted $50,000 of Citibank Visa credit card charges. Citibank charges 4% for its credit card use. What is the entry to record this transaction?

One of the following statements about promissory notes is incorrect. Which one is it?

Michael Co. accepts a $1,000, 3-month, 6% promissory note in settlement of an account with Tani Co. What is the correct entry to record this transaction?

Schleis Co. holds Murphy Inc.'s $10,000, 120-day, 9% note. What is the entry made by Schleis Co. when the note is collected, assuming no interest has been previously accrued?

Eddy Corporation had net credit sales of $800,000 and cost of goods sold of $500,000. The net balance of accounts receivable at the beginning of the year was $100,000, and at the end of the year, it was $150,000. What were the accounts receivable turnover and the average collection period in days?

Additions to plant assets are classified as:

Depreciation is a process of:

When there is a change in estimated depreciation, what should be done?

Able Towing Company purchased a tow truck for $60,000 on January 1, 2022. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2024, the company decided to change the remaining estimated life to 4 years and the salvage value to $2,000. What was the depreciation expense for 2024?

Bennie Razor Company decided to sell an old manufacturing machine on June 30, 2022. The machine was purchased for $80,000 on January 1, 2018, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale?

Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined in the first year, the entry to record depletion will include a:

Which of the following statements is false regarding intangible assets?

Martha Beyerlein Company incurred $150,000 of research and development costs to develop a patent granted on January 2, 2022. On July 31, 2022, Beyerlein paid $35,000 for legal fees in a successful defense of the patent. What is the total amount debited to Patents through July 31, 2022?

Indicate which of the following statements is true regarding asset disclosure:

Schopenhauer Company exchanged an old machine with a book value of $39,000 and a fair value of $35,000, and paid $10,000 cash for a similar new machine. The transaction has commercial substance. At what amount should the machine acquired in the exchange be recorded?

In exchanges of assets in which the exchange has commercial substance:

The time period for classifying a liability as current is one year or the operating cycle, whichever is:

To be classified as a current liability, a debt must be expected to be paid within:

Ottman Company borrows $88,500 on September 1, 2022, from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the interest at December 31, 2022?

JD Company borrowed $70,000 on December 1 on a 6-month, 12% note, interest to be paid at maturity. At December 31:

Alexis Company has total proceeds from sales of $4,515. If the proceeds include sales taxes of 5%, what amount should be credited to Sales Revenue?

No Fault Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1, 2022. What amount should No Fault report as a current liability for Unearned Service Revenue at December 31, 2022?

Employer payroll taxes do not include:

When recording payroll, which of the following is true?

The term used for bonds that are unsecured is:

Karson Inc. issues 10-year bonds with a face value of $200,000. If the bonds are issued at a premium, this indicates that:

On January 1, 2022, Kelly Corp. issues $200,000, 5-year, 7% bonds at face value. The entry to record the issuance of the bonds would include a:

Prescher Corporation issued bonds that pay interest every July 1 and January 1. The entry to accrue bond interest at December 31 includes a:

Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a:

Howard Corporation issued a 20-year mortgage note payable on January 1, 2022. At December 31, 2022, the unpaid principal balance will be reported as:

On December 31, 2022, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable each December 31. The entry on December 31, 2023, to record payment of bond interest and the amortization of bond discount using the straight-line method will include a:

On December 31, 2022, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable each December 31. What is the carrying value of the bonds at the end of the third interest period using straight-line amortization?

On January 1, Holly Ester Inc. issued $1,000,000, 9% bonds for $938,554. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Holly Ester uses the effective-interest method of amortizing bond discount. At the end of the first year, Holly Ester should report unamortized bond discount of:

Dias Corporation issued $1,000,000, 14%, 5-year bonds with interest payable annually on December 31. The bonds sold for $1,072,096. The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for:

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