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Exam 8: Receivables

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Question 71

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On June 30 (the end of the period), Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

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June 30 Bad Debt Exp...

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Question 72

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Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to recognize the interest to be paid has what effect on the accounting equation?

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Assets (Interest Rec...

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Question 73

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Which statement is not true?

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment) , and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each.(a)Bad Debt Expense 900 Accounts Receivable-Billings 900 (b)Allowance for Doubtful Accounts 900 Accounts Receivable-Grover 900

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

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.​ Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts, respectively.​

The following information was taken from the financial records of Sodigaz, Inc. The number of days' sales in receivable for Year 2 is

The term "receivables" includes all

Match each description to the appropriate term (a-d). Each term may be used more than once. -Offers two methods of estimating uncollectible accounts. A)Direct write-off method B)Aging of receivables method C)Percent of sales method D)Allowance method

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

Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a

Match each description to the appropriate term (a-h). -The time between the date a note is issued and the due date of the note A)Face amount B)Term C)Interest D)Maturity value E)Dishonored note F)Maker G)Notes receivable H)Interest rate

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

When an account receivable that has been written off is subsequently collected, the account receivable must first be reinstated before recording the receipt of payment.

Match each description to the appropriate term (a-i). -A contra asset that represents the amount of estimated uncollectible receivables A)Accounts receivable turnover B)Net realizable value C)Accounts receivable D)Aging report E)Receivables F)Direct write-off method G)Allowance for doubtful accounts H)Bad debt expense I)Factoring

Other receivables include nontrade receivables such as loans to company officers.

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

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

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?