Question 1

What is the cash realizable value of Accounts Receivable after the Duffy account is written off?

Accepted Answer

The answer of What is the cash realizable value of...

Question 2

Rainey Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred.
Oct. 15 Sold $12,000 of accounts receivable to Good Factors, Inc. who assesses a 3% finance charge.
25 Made sales of $700 on VISA credit cards. The credit card service charge is 2%.
Instructions
Journalize the transactions.

Accepted Answer

The answer of Rainey Company has the following accounts in...

Question 3

On February 7, Camp Company sold goods on account to Fillmore Enterprises for €6,000, terms 2/10, n/30. On March 9, Fillmore gave Camp a 60-day, 9% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Camp Company.

Accepted Answer

The answer of On February 7, Camp Company sold goods...

Question 4

Determine the interest on the following notes:
(a) ¥200,000 at 6% for 90 days.
(b) ¥120,000 at 9% for 5 months.
(c) ¥300,000 at 8% for 60 days
(d) ¥240,000 at 7% for 6 months

Accepted Answer

The answer of Determine the interest on the following notes:
(a)...

Question 5

Patel Co. sells Christmas angels. Patel determines that at the end of December, it has the following aging schedule of Accounts Receivable:  Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Accepted Answer

The answer of Patel Co. sells Christmas angels. Patel determines...

Question 6

On January 6, Stegner Co. sells merchandise on account to Molina Inc. for €8,000, terms 2/10, n/30. On January 16, Molina Inc. pays the amount due. Prepare the entries on Stegner's books to record the sale and related collection.
(b) On January 10, Jill Flynn uses her Calhoun Co. credit card to purchase merchandise from Calhoun Co. for €9,000. On February 10, Flynn is billed for the amount due of €9,000. On February 12, Flynn pays €5,000 on the balance due. On March 10, Flynn is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Calhoun Co.'s books related to the transactions that occurred on January 10, February 12, and March 10.

Accepted Answer

The answer of On January 6, Stegner Co. sells merchandise...

Question 7

Which of the following statements concerning receivables is incorrect?

Accepted Answer

The answer of Which of the following statements concerning receivables...

Question 8

Compute the maturity value for each of the following notes receivable.
1. An $8,000, 6%, 3-month note dated July 20.
Maturity value $____________.
2. A $12,000, 9%, 150-day note dated August 5.
Maturity value $____________.

Accepted Answer

The answer of Compute the maturity value for each of...

Question 9

Record the following transactions for Turnbull Company.
1. On August 4, Turnbull sold merchandise on account to Tabor Company for $750, terms 2/10, n/30.
2. On August 7, Turnbull granted Tabor a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged.
3. On August 12, Tabor paid the account in full.

Accepted Answer

The answer of Record the following transactions for Turnbull Company.
1....

Question 10

Coffeldt Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2013, and December 31, 2014, appear below:  Instructions
(a) Record the following events in 2014.
Aug. 10 Determined that the account of Sue Lang for $1,000 is uncollectible.
Sept. 12 Determined that the account of Tom Woods for $4,000 is uncollectible.
Oct. 10 Received a check for $550 as payment on account from Sue Lang, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November.
Nov. 15 Received a check for $450 from Sue Lang as payment on her account.
(b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2014.
(c) What is the balance of Allowance for Doubtful Accounts at December 31, 2014?

Accepted Answer

The answer of Coffeldt Sign Company uses the allowance method...

Question 11

On February 1, Platt Company received a €6,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

Accepted Answer

The formula to calculate the cash to be received on a note receivable is:

Cash to be received = principal + (principal × interest rate × time)

In this case, the principal is €6,000, the interest rate is 10%, and the time is four months (which is 4/12 or 1/3 of a year). Therefore:

Cash to be received = €6,000 + (€6,000 × 0.10 × 1/3) 
Cash to be received = €6,000 + €200 
Cash to be received = €6,200

So the correct answer is C) €6,200.

Question 12

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore dishonors the note on May 9. Record the entry that Camp would make when the note is dishonored, assuming that no interest has been accrued.

Accepted Answer

The answer of On March 9, Fillmore gave Camp Company...

Question 13

The accounts receivable turnover ratio is computed by dividing

Accepted Answer

The accounts receivable turnover ratio measures how quickly a company collects its accounts receivable. The numerator should reflect credit sales because those are the sales for which payment is expected at a later date. Net credit sales are used because they reflect the amount of credit sales made during the period after deducting any returns, allowances, or discounts. The denominator should reflect the average outstanding accounts receivable balance over the period.

Question 14

Longbine Company's ledger at the end of the current year shows Accounts Receivable of $150,000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.

Accepted Answer

The answer of Longbine Company's ledger at the end of...

Question 15

The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

Accepted Answer

When a note receivable is dishonored and the payee expects eventual collection, the entry includes debiting Accounts Receivable to record the amount expected to be collected in the future. This moves the balance from Notes Receivable, indicating the shift from a formal note back to a regular receivable.

Question 16

Flint Distributors has the following transactions related to notes receivable during the last two months of the year.
Dec. 1 Loaned $18,000 cash to G. Kingsley on a 1-year, 6% note.
16 Sold goods to D. Jones, receiving a $4,800, 60-day, 7% note.
31 Accrued interest revenue on all notes receivable.
Instructions
Journalize the transactions for Flint Distributors.

Accepted Answer

The answer of Flint Distributors has the following transactions related...

Question 17

Record the following transactions for Yockey Company.
1. On April 12, sold $17,000 of merchandise to Hauser Inc., terms 2/10, n/30.
2. On April 15, Hauser returned $2,000 of merchandise.
3. On April 22, Hauser paid for the merchandise.

Accepted Answer

The answer of Record the following transactions for Yockey Company.
1....

Question 18

Prepare journal entries to record the following transactions entered into by Glaser Company:

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 19

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.

Accepted Answer

The answer of On March 9, Fillmore gave Camp Company...

Question 20

The following data exists for Gilkey Company.  Calculate the receivables turnover ratio and the average collection period for accounts receivable in days for 2014.

Accepted Answer

The answer of The following data exists for Gilkey Company....

Quiz 8: Accounting for Receivables

What is the cash realizable value of Accounts Receivable after the Duffy account is written off?

On February 7, Camp Company sold goods on account to Fillmore Enterprises for €6,000, terms 2/10, n/30. On March 9, Fillmore gave Camp a 60-day, 9% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Camp Company.

Determine the interest on the following notes: (a) ¥200,000 at 6% for 90 days. (b) ¥120,000 at 9% for 5 months. (c) ¥300,000 at 8% for 60 days (d) ¥240,000 at 7% for 6 months

Patel Co. sells Christmas angels. Patel determines that at the end of December, it has the following aging schedule of Accounts Receivable: Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Which of the following statements concerning receivables is incorrect?

Compute the maturity value for each of the following notes receivable. 1. An $8,000, 6%, 3-month note dated July 20. Maturity value $. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $.

On February 1, Platt Company received a €6,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore dishonors the note on May 9. Record the entry that Camp would make when the note is dishonored, assuming that no interest has been accrued.

The accounts receivable turnover ratio is computed by dividing

The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

Record the following transactions for Yockey Company. 1. On April 12, sold $17,000 of merchandise to Hauser Inc., terms 2/10, n/30. 2. On April 15, Hauser returned $2,000 of merchandise. 3. On April 22, Hauser paid for the merchandise.

Prepare journal entries to record the following transactions entered into by Glaser Company:

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.

The following data exists for Gilkey Company. Calculate the receivables turnover ratio and the average collection period for accounts receivable in days for 2014.

Quiz 8: Accounting for Receivables

What is the cash realizable value of Accounts Receivable after the Duffy account is written off?

On February 7, Camp Company sold goods on account to Fillmore Enterprises for €6,000, terms 2/10, n/30. On March 9, Fillmore gave Camp a 60-day, 9% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Camp Company.

Determine the interest on the following notes: (a) ¥200,000 at 6% for 90 days. (b) ¥120,000 at 9% for 5 months. (c) ¥300,000 at 8% for 60 days (d) ¥240,000 at 7% for 6 months

Patel Co. sells Christmas angels. Patel determines that at the end of December, it has the following aging schedule of Accounts Receivable: Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Which of the following statements concerning receivables is incorrect?

Compute the maturity value for each of the following notes receivable. 1. An $8,000, 6%, 3-month note dated July 20. Maturity value $____________. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $____________.

On February 1, Platt Company received a €6,000, 10%, four-month note receivable. The cash to be received by Platt Company when the note becomes due is

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore dishonors the note on May 9. Record the entry that Camp would make when the note is dishonored, assuming that no interest has been accrued.

The accounts receivable turnover ratio is computed by dividing

The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to

Record the following transactions for Yockey Company. 1. On April 12, sold $17,000 of merchandise to Hauser Inc., terms 2/10, n/30. 2. On April 15, Hauser returned $2,000 of merchandise. 3. On April 22, Hauser paid for the merchandise.

Prepare journal entries to record the following transactions entered into by Glaser Company:

On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.

The following data exists for Gilkey Company. Calculate the receivables turnover ratio and the average collection period for accounts receivable in days for 2014.

Compute the maturity value for each of the following notes receivable. 1. An $8,000, 6%, 3-month note dated July 20. Maturity value $. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $.