QUESTION 1

Notes or accounts receivables that result from sales transactions are often called?

QUESTION 2

Three accounting issues associated with accounts receivable are

QUESTION 3

A customer charges a treadmill at Mike's Sport Shop. The price is $2,000 and the financing charge is 9% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's account. What is the amount of the finance charge?

QUESTION 4

Under the allowance method, writing off an uncollectible account

QUESTION 5

The net amount expected to be received in cash from receivables is termed the

QUESTION 6

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the

QUESTION 7

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when

QUESTION 8

The percentage of sales basis of estimating expected uncollectibles

QUESTION 9

An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

QUESTION 10

Bad Debts Expense is considered

QUESTION 11

The allowance method of accounting for uncollectible accounts is required if

QUESTION 12

Bad Debts Expense is reported on the income statement as

QUESTION 13

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

QUESTION 14

Two bases for estimating uncollectible accounts are:

QUESTION 15

The percentage of receivables basis for estimating uncollectible accounts emphasizes

QUESTION 16

Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $500,000 and credit sales are $2,000,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?

QUESTION 17

In reviewing the accounts receivable, the cash realizable value is $16,000 before the write-off of a $1,500 account. What is the cash realizable value after the write-off?

QUESTION 18

On March 1, 2010, Joe Miles purchased a suit at Calvin's Fine Apparel Store. The suit cost $250 and Joe used his Calvin credit card. Calvin charges 2% per month interest if payment on credit charges is not made within 30 days. On April 30, 2010, Joe had not yet made his payment. What entry should Calvin make on April 30th?

QUESTION 19

Newland Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Newland Retailers will include a credit to Sales of $75,000 and a debit(s) to

QUESTION 20

Major advantages of credit cards to the retailer include all of the following except the

QUESTION 21

The sale of receivables by a business

QUESTION 22

The retailer considers Visa and MasterCard sales as

QUESTION 23

A 60-day note receivable dated June 13 has a maturity date of

QUESTION 24

The maturity value of a $30,000, 8%, 3-month note receivable is

QUESTION 25

On January 15, 2010, Raymond Company received a two-month, 9%, $5,000 note from William Pentel for the settlement of his open account. The entry by Raymond Company on March 15, 2010 if Pentel dishonors the note and collection is expected is:

QUESTION 26

Notes receivable are recognized in the accounts at

QUESTION 27

Rodgers Company lends Lanier Company $30,000 on April 1, accepting a four-month, 9% interest note. Rodgers Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?

QUESTION 28

The financial statements of Hudson Manufacturing Company report net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning and end of the year, respectively. What is the receivables turnover ratio for Hudson?

QUESTION 29

The financial statements of Hudson Manufacturing Company report net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?