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Exam 9: Receivables

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Question 21

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Days' sales in receivables

A) is an estimate of the length of time the receivables have been outstanding
B) measures the number of times the receivables turn over each year
C) is credit sales divided by average receivables
D) is not meaningful and therefore is not used

E) None of the above
F) All of the above

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Question 22

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The following are the current assets of Barnes Co.as of December 31:​ Prepare the Current assets section of the balance sheet.

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Question 23

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In accounting for uncollectible receivables,the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying

When using the direct write-off method of accounting for uncollectible receivables,the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles

The interest on a 6%,60-day note for $5,000 is $300.

Sunshine Service Center received a 120-day,6% note for $40,000,dated April 12 from a customer on account.

On the basis of the following data related to assets due within one year for Simons Co.,prepare a partial balance sheet in good form at December 31.Show total current assets.

Lone Star Company received a 90-day,6% note for $80,000,dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Stephanie Roe utilizes the direct write-off method of accounting for uncollectible receivables.On September 15,she is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation of Jacob Marley.Write off the $675 of accounts receivable due from Jacob Marley.

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

Determine the due date and amount of interest due at maturity on the following notes:​

List at least three indicators that a receivable may be uncollectible.

On August 1,Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company.The terms of the note were $20,000 face value and 6% interest.On October 30,the journal entry to record the collection of the note should include a

The direct write-off method records bad debt expense in the year the specific account receivable is determined to be uncollectible.

Match each description to the appropriate term (a-d) . Each term may be used more than once. -This method records bad debts when specific accounts are deemed uncollectible.

Journalize the following transactions for Lucite Company.Nov.14 Received a $4,800,90-day,9% note from Alan Albertson in payment of his account.Dec.31 Accrued interest on the Albertson note.Feb.12 Received the amount due from Albertson on his note.

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400.If Allowance for Doubtful Accounts has a $1,300 debit balance,the adjustment to record the bad debt expense for the period will require a

When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables,a major difference is that the direct write-off method

Tanning Company analyzes its receivables to estimate bad debt expense.The accounts receivable balance is $390,000 and credit sales are $1,300,000.An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible.What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?