Chapter 9 Quiz example #73006

True or False: The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible.

True or False: The matching principle requires use of the direct write-off method of accounting for bad debts.

The person who signs a note receivable and promises to pay the principle and interest is the: a. holder b. maker c. payee d. receiver e. owner

The maturity date of a note receivable: a. is the day of the credit sale b. is the day the note was signed c. is the day the note is due to be paid d. is the date of the first payment e. is the last day of the month

A company had total sales of $750,000, and an average accounts receivable of $75,000. Its accounts receivable turnover equals: a. .13 b. .80 c. 7.75 d. 8.00 e. 10.00

A company used the percent of sales method to determine ts bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts Receivable..............................$335,000 debit Allowance for uncollectible accounts.....$500 credit Net Sales................................................$800,000 credit All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? a. $1,275 b. $1,775 c. $4,500 d. $4,800 e. $5,500

The interest accrued on $6,500 at 6% for 60 days is: a. $36 b. $42 c. $65 d. $180 e. $420

A 90-day note issued on April 10 matures on: a. July 9 b. July 10 c. July 11 d. July 12 e. July 13

A company borrowed $10,000 by signing a 180-day promissory note at 11%. The maturity value of the note is: a. $12,050 b. $12,275 c. $10,550 d. $12,825 e. $13,100

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Sold accounts receivable incurring a factoring fee. The number corresponding to one of the accounts debited is ___________ and the number corresponding to the other account debited is ____________. The number corresponding to the account credited is ______________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Accrued interest on a notes receivable at the end of the year. The number corresponding to the account debited is _______________ and the number corresponding to the account credited is _______________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Received a note on a past due account. The number corresponding to the account debited is ______________ and the number corresponding to the account credited is ________________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Received payment for a note at maturity in the same year the note was received. The number corresponding to the account debited is _______________. The number corresponding to one of the accounts credited is _______________ and the number corresponding to the other account credited is ________________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Made the bad debt adjustment at the end of the year using the allowance method. The number corresponding to the account debited is ______________ and the number corresponding to the account credited is _______________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Wrote off an account using the allowance method. The number corresponding to the account debited is _____________ and the number corresponding to the account credited is _______________.

Shown below are several accounts from a company's ledger with each account preceded by an identification number, and a transaction completed by this company. Indicate the number corresponding to the account debited and the number corresponding to the account credited when journalizing this transaction. 1. Accounts payable 2. Accounts receivable 3. Allowance for doubtful accounts 4. Bad debt expense 5. Cash 6. Factoring Fee Expense 7. Interest earned 8. Interest expense 9. Interest receivable 10. Notes payable 11. Notes receivable 12. Sales Transaction - Wrote off an account using the direct write off method. The number corresponding to the account debited is ______________ and the number corresponding to the account credited is _______________.