1.) Once an account has been identified as being uncollectible, Allowance for Uncollectible Accounts is debited (assume an annual adjusting entry is made for uncollectible accounts).

Group of answer choices

True

False

2.) Travis Company received a payment at maturity on its $1,600, 60-day, 9% note receivable. The journal entry to record the transaction would include a:

Group of answer choices

debit to Cash of $1,624.

credit to Notes Receivable of $1,624.

debit to Cash of $1,616.

credit to Interest Revenue of $16.

3.) A company has a fiscal year ending on March 31. On January 31, it borrowed $40,000 by giving a 6-month, 15% note. The company's March 31 balance sheet should report interest payable of:

Group of answer choices

$2,000

$1,000

$3,000

$6,000

4.) A company shows the following account balances at the beginning of its accounting period: Accounts Receivable, $220,000, and Allowance for Uncollectible Accounts, $8,500 (Cr.). During the year, credit sales were $680,000, collections were $590,000, and $10,000 of uncollectible accounts were written off. The Allowance for Uncollectible Accounts is then adjusted to 6% of the outstanding receivables. The amount of uncollectible accounts expense recognized for the year is:

Group of answer choices

$19,500

$16,500

$45,500

$17,100

5.)

At the time when goods are sold on account, revenue is both earned and realized.

Group of answer choices

True

False

6.) The Allowance for Uncollectible Accounts is:

Group of answer choices

an expense account used to accumulate the uncollectible accounts expense that will appear in the income statement.

a contra-asset account to Accounts Receivable.

credited every time an uncollectible account is written off.

debited at the end of each year by an adjusting entry.

7.)

Revenue from sales is generally recorded at the point of sale, whether cash or an account receivable is received in the exchange.

Group of answer choices

True

False

8.) A company with credit terms of 2/10, n/30 would expect to have a lower accounts receivable turnover than a company with terms of n/60.

Group of answer choices

True

False

9.)A company uses an estimate of 5 percent of outstanding receivables in adjusting its allowance for uncollectible accounts. It failed to write off an uncollectible account of $3,000 before adjusting its allowance to an amount equal to 5% of its outstanding receivables. The effect of this error is to:

Group of answer choices

increase net income by $2,850.

decrease net income by $3,000.

increase net income by $3,000.

not affect net income.