Multiple choice questions

1. Amount due from another party. Most common: Accounts receivables, and Notes receivables.

a. Bad Debts

b. Bankers rule

c. Selling receivables

d. Receivables

2. Date the note must be repaid

a. receivable

b. Bankers rule

c. Bad Debts

d. Maturity date

3. Adjusting entry for Allowance method Dr. Bad debts expense, Cr. Allowance for doubtful accounts.

a. True

b. False

4. Dr. Bad debts expense, Cr. Allowance for doubtful accounts.

a. Recovering a Bad Debt (Allowance method)

b. Adjusting entry for Allowance method

c. Allowance Method

d. two advantages of allowance method

5. Contra asset account with a balance approximating uncollectible accounts receivable; also called Allowance for Uncollectible Accounts

a. Allowance for Doubtful Accounts

b. Aging of account receivables

c. Allowance Method

d. Interest Computation

6.The maturity date of a note receivable: A. Is the day of the credit sale B. Is the day the note was signed C. Is the day the note is due to be paid D. Is the date of the first payment

7.A company receives a 10%, 90-day note for $1,500. The total interest due upon the maturity date is: A. $37.50 B. $150.00 C. $75.00 D. $50.00

8.What is the amount of interest that is due on a $36,000 3-month 4% note receivable?

9.If a 60-day note receivable is dated September 22, what is the maturity date of the maturity date of the note?

10.Hasbro had net sales of 7,875 and its average accounts receivable is $1,350. Calculate Hasbros accounts receivable turnover.