Question 1

When using the percent of sales method of estimating uncollectibles,the entry to record bad debt expense includes a credit to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 2

For a business that uses the allowance method of accounting for uncollectible receivables:

Accepted Answer

The answer of For a business that uses the allowance...

Question 3

Under the allowance method of accounting for uncollectible receivables,writing off an uncollectible account

Accepted Answer

A)  affects only income statement accounts
B)  is not an acceptable practice
C)  affects only balance sheet accounts
D)  affects both balance sheet and income statement accountsE) A) and C)
F) A) and B)

Question 4

Match each description to the appropriate term (a-d) . Each term may be used more than once.
-With this method,there is no allowance account.

Accepted Answer

A)  Direct write-off method
B)  Aging of receivables method
C)  Percent of sales method
D)  Allowance methodE) C) and D)
F) A) and C)

Question 5

Notes or accounts receivable that result from sales transactions are often called

Accepted Answer

A)  nontrade receivables
B)  trade receivables
C)  merchandise receivables
D)  sales receivablesE) None of the above
F) B) and C)

Question 6

The amount of the promissory note plus the interest earned on the due date is called the

Accepted Answer

A)  interest value
B)  maturity value
C)  face value
D)  issuance valueE) B) and D)
F) B) and C)

Question 7

A company uses the allowance method to account for uncollectible accounts receivable.When the firm writes off a specific customer's account receivable,

Accepted Answer

A)  total current assets are reduced
B)  total expenses for the period are increased
C)  the net realizable value of accounts receivable increases
D)  there is no effect on total current assets or total expensesE) B) and D)
F) A) and B)

Question 8

The due date of a 60-day note dated July 10 is September 10.

Accepted Answer

A) True 
 B)False

Question 9

At the end of a period 
(before adjustment),Allowance for Doubtful Accounts has a debit balance of $500.Credit sales for the period total $800,000.If bad debt expense is estimated at 1% of credit sales,the amount of bad debt expense to be recorded in the adjusting entry is $8,500.

Accepted Answer

A) True 
 B)False

Question 10

The balance of Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Under the direct write-off method of accounting for uncollectible accounts,Bad Debt Expense is recorded

Accepted Answer

A)  at the end of each accounting period
B)  when a credit sale is past due
C)  whenever a predetermined amount of credit sales has been made
D)  when an account is determined to be worthlessE) A) and C)
F) C) and D)

Question 12

Selling receivables

Accepted Answer

A)  shifts some of the risk to the buyer
B)  delays the receipt of cash
C)  occurs when an account becomes uncollectible
D)  results in bad debt expenseE) B) and D)
F) All of the above

Exam 9: Receivables

The amount of the promissory note plus the interest earned on the due date is called the

Correct Answer
verified

For a business that uses the allowance method of accounting for uncollectible receivables:

Correct Answer
verified

Notes or accounts receivable that result from sales transactions are often called

Correct Answer
verified

When using the percent of sales method of estimating uncollectibles,the entry to record bad debt expense includes a credit to Accounts Receivable.

Correct Answer
verified

Selling receivables

Correct Answer
verified

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a debit balance of $500.Credit sales for the period total $800,000.If bad debt expense is estimated at 1% of credit sales,the amount of bad debt expense to be recorded in the adjusting entry is $8,500.

Correct Answer
verified

The balance of Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Correct Answer
verified

Under the direct write-off method of accounting for uncollectible accounts,Bad Debt Expense is recorded

Correct Answer
verified

A company uses the allowance method to account for uncollectible accounts receivable.When the firm writes off a specific customer's account receivable,

Correct Answer
verified

Match each description to the appropriate term (a-d) . Each term may be used more than once. -With this method,there is no allowance account.

Correct Answer
verified

Under the allowance method of accounting for uncollectible receivables,writing off an uncollectible account

Correct Answer
verified

The due date of a 60-day note dated July 10 is September 10.

Correct Answer
verified

Exam 9: Receivables

The amount of the promissory note plus the interest earned on the due date is called the

Correct AnswerverifiedShow Answer

For a business that uses the allowance method of accounting for uncollectible receivables:

Correct AnswerverifiedShow Answer

Notes or accounts receivable that result from sales transactions are often called

Correct AnswerverifiedShow Answer

When using the percent of sales method of estimating uncollectibles,the entry to record bad debt expense includes a credit to Accounts Receivable.

Correct AnswerverifiedShow Answer

Selling receivables

Correct AnswerverifiedShow Answer

At the end of a period (before adjustment),Allowance for Doubtful Accounts has a debit balance of $500.Credit sales for the period total $800,000.If bad debt expense is estimated at 1% of credit sales,the amount of bad debt expense to be recorded in the adjusting entry is $8,500.

Correct AnswerverifiedShow Answer

The balance of Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.

Correct AnswerverifiedShow Answer

Under the direct write-off method of accounting for uncollectible accounts,Bad Debt Expense is recorded

Correct AnswerverifiedShow Answer

A company uses the allowance method to account for uncollectible accounts receivable.When the firm writes off a specific customer's account receivable,

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-d) . Each term may be used more than once. -With this method,there is no allowance account.

Correct AnswerverifiedShow Answer

Under the allowance method of accounting for uncollectible receivables,writing off an uncollectible account

Correct AnswerverifiedShow Answer

The due date of a 60-day note dated July 10 is September 10.

Correct AnswerverifiedShow Answer

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