1. A note receivable dated May 23 and due in 90 days would be due on.

a. August 23.

b. August 21.

c. August 22.

d. August 20.

2. Assume that on December 1, a $3,000, 90-day, 10 percent note receivable was received from a customer as an extension of his of past due account. The entry that would be made to record the note is:

a. Cash 3,000

Accounts receivable 3,000

b. Notes receivable 3,000

Cash 3,000

c. Notes receivable 3,000

Accounts receivable 3,000

d. Notes receivable 3,000

Interest Income account 3,000

3. Days' sales uncollected equals 365 days divided by.

a. net sales.

b. average net accounts receivable.

c. net income.

d. the receivable turnover.

4. The account Allowance for Uncollectible Accounts is classified as a( n )

a. contra account to Accounts Receivable.

b. liability.

c. contra account to Uncollectible Accounts Expense.

d. expense.

5. The receivable turnover is expressed in terms of.

a. dollars.

b. a percentage.

c. times.

d. days.

6. Which of the following methods of recording uncollectible accounts expense would be described best as a balance sheet method?

a. Percentage of net sales method

b. Accounts receivable aging method

c. Direct charge-off method

d. Both percentage of net sales method and direct charge-off method

7. Which of the following methods of recording uncollectible accounts expense would be described best as an income statement method?

a. Direct charge-off method

b. Accounts receivable aging method

c. Percentage of net sales method

d. Both direct charge-off method and accounts receivable aging method

8. Which of the following statements is not true when FLK Company discounts a note receivable to the bank?

a. If the maker of the note pays the bank on time, no liability will result to FLK.

b. FLK may ultimately have to pay the bank when the note is due.

c. FLK will receive the maturity value from the bank.

d. A contingent liability arises for FLK.

9. The following data exist for Conner Company:

	2010	2009
Accounts Receivable	$ 80,000	$ 90,000
Sales	533,000	410,500

Calculate the receivable turnover and the average days' sales uncollected for 2010.

10. Jayne Luke started a computer business in her basement less than a year ago. Her personal attention to clients and persistence in obtaining new customers has caused the business to grow at a tremendous pace. Jayne has become so busy she has neglected to keep after clients who have failed to pay her. As a result, Jayne has a large amount of accounts receivable and notes receivable on her balance sheet but not much cash. She continues to service clients, but she now realizes that her cash will soon be exhausted.

Suggest 4 options Jayne has to achieve a strong cash balance.