Which of the following actions should a merchandiser take at the point of sale to recognize an accounts receivable? Record the sale and decrease accounts payable Record the sale and increase cash Record the sale and increase accounts receivable Record the sale and decrease inventory

Record the sale and increase accounts receivable

What is a primary difference between a note receivable and an account receivable? An account receivable includes interest and a maturity date An account receivable is always long-term A note receivable includes interest and a maturity date A note receivable is always short-term

A note receivable includes interest and a maturity date

Accounting Fundamentals: Receivables, Financial Statements and Business Entities

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Cards in this deck(53)

Which of the following actions should a merchandiser take at the point of sale to recognize an accounts receivable?

What is a primary difference between a note receivable and an account receivable?

The financial statements of the Darlington Company report net sales of $500,000 and accounts receivable of $40,000 and $20,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Darlington?

The recovery of a previously uncollectible account requires how many journal entries?

Executives, payroll coordinators, budget managers, and inventory specialists are examples of which type of users?

A business form that is identified as a separate legal entity is a _____?

Receiving a loss on the sale of machinery would be considered what type of activity?

When expenses exceed revenues, what is the financial result?

In accounting terms, what does 'debit' mean?

What is the 'normal balance' side of the account for Dividends?

What is the correct order of financial statement completion?

Which financial statement includes assets, liabilities, and stockholder's equity?

What term is used by a seller to describe a cash discount granted to buyers who pay within the discount period?

Which accounting basis is legal under GAAP standards?

In a period of declining prices, which costing system results in the highest ending inventory balances?

How does one use the General Ledger?

Which of the following examples is an accrual journal entry?

Which of the following journal entries is an example of a deferral?

What is depreciation?

An expenditure for which of the following items would be considered a revenue expenditure?

Which of the following is NOT a depreciable asset?

In computing depreciation, what is salvage value?

How do you find the annual depreciation using the straight-line method?

One characteristic of a plant asset is that it is _____?

In the closing process, what happens to expenses, revenues, and dividends?

Skysong Inc purchases $6970 worth of laundry supplies on June 2 and records the purchase as an asset. On June 30, an inventory of the laundry supplies indicates only $1230 on hand. What adjusting entry should be made by the company on June 30?

The interest rate for a three-month loan would normally be stated in terms of a _____ rate of interest.

How much interest will a 120-day note receivable of $2850 with an interest rate of 10.5% earn?

What are capital expenditures?

What are revenue expenditures?

On September 1st, 2017, Brett's Baby purchased an asset for $9000 and paid sales taxes and closing fees related to that asset which amounted to $1000. The estimated salvage value is 15% of the initial cost and has a 4-year useful life. How much is the 2017 depreciation expense at year-end using the straight-line method?

A _____ on disposal would result when the book value of the asset is lower than proceeds received from its sale.

Receivables are amounts _____ from individuals or companies.

When there is a loss on disposal of a plant asset, it is _____ in the journal entry.

Bad debts expense is debited in the direct write-off method when _____?

The book value of an asset is equal to the _____?

A company records interest earned during _____?

Revenue expenditures are _____?

What is the direct write-off method?

Which of the following items is not considered a part of the cost of a truck purchased for business use?

Accounts Receivable are valued and reported on the balance sheet at _____?

Pina Colada Corp uses the percentage of receivables method of recording a bad debt expense. The Accounts Receivable balance is $370,000 and credit sales are $1,480,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Pina Colada Corp. make if the allowance for doubtful accounts has a credit balance of $3,700 before adjustment?

Compton Inc made a $500 ordinary repair to a piece of equipment. Compton's accountant debited this amount to the asset account, equipment, and credited cash. Was this the correct entry and if not, why not?

Cortison Company purchases equipment and incurs these costs: Cash price $24,000, Sales taxes $1,200, Insurance during transit $200, Annual maintenance costs $400. What is the total cost of the equipment?

Indigo Corporation purchased land for a new parking lot for $135,000. The paving cost $181,000 and the lights to illuminate the new parking area cost $56,000. Which of the following statements is true with respect to these additions?

On July 15th, Katie sells merchandise on account to Kenzie for $6,000 with terms 2/10, n/30. On January 20th, Bramble returns merchandise worth $1,100 to Katie. On July 23rd, payment is received from Kenzie for the balance due. What is the amount of cash received?

In 2023, Katie has equipment that originally cost $145,000 and accumulated depreciation of $60,000. The equipment has been rendered obsolete, so it must be retired. What would be the journal entry to record the retirement of the equipment?

Polly's Plastics factors $600,000 of receivables to Kenzie's Housewares. Kenzie assesses a 3% charge on the amount of receivables sold. What journal entry does Polly make when factoring these receivables?

Under the Historical Cost Principle, what is the cost of land if a company purchased land for $100,000 cash with the following associated costs: Real Estate Commission $5,500, Demolition $7,000, Proceeds from salvage of the demolished building $1,200?

Katie Manufacturing lends Pino Grigio Industries $46,000 on July 1, 2022, accepting a 9-month, 12% interest note. If Katie accrued interest at its December 31, 2022 year-end, what entry must she make to record the collection of the note and interest at its maturity date?

Cucumber Company purchased a machine with a list price of $160,000. They were given a 6% discount by the seller. They paid $4,000 for shipping and sales tax of $4,600. Cucumber estimates that the machine will have a useful life of 5 years and a salvage value of $75,000. If Cucumber uses straight-line depreciation, what will the annual depreciation be?

What are the four subdivisions of plant assets?

On March 1st, 2017, Katie purchased equipment for $10,500 with an estimated salvage value of $2,000 and a 5-year useful life. How much would the depreciation expense be for 2017 using the straight-line method?

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