1. Receivables are amounts due to the business. Accounts Receivable are amounts due from 2. Prepare the journal entry to record the sale of a television for $2,485 to a customer that used a Visa credit card that charges a company 3% 3. To account for uncollectible accounts (bad debts), companies that make sales on credit may use either the method or the method. 4. Which of these two methods violates the Matching Principle (Expense Recognition principle)? 5. If a company uses the allowance method, the company must bad debts expected from the period's sales. 6. What are the two advantages the allowance method has over the direct write off method? a. b. 7. The is a contra asset account which reduces the Accounts feceivable account to it's 8. If a company estimates that its uncollectible accounts for the period is $1,284, what is the journal entry at the end of that period? a. b. If the balance in the Accounts fecelvable account is $128,446 and the balance in the Allowance account is $1,784 after the above journal entry, how much is reported on the Balance Sheet for Accounts Receivable? Answer: 9. ACME Company determines that the account of Beta Corp. for $700 is uncollectible. a. If ACME used the Direct Write-off methed to account for uncollectible accounts the journal entry to write off the account is: b. If Beta Corp sends a check for $700 six months later, what entryfies) is/are made c. If ACME used the Allowance method to acceunt for uncollectible account, the journal entry to write off an account is: d. If Beta Corp sends a check for $700 six months later, what entry(ies) is/are made (assume the write-off is the one above, using the Allowance method): 10. When a company is required to use the Allowance method to estimate Bad debt expense, there are 3 methods discussed in the textbook that may be used for estimating Bad debt expense. a. Which method is known as an income statement method? b. Which methods are known as balance sheet methods? 1. ii. 11. Sometimes a seller may have a customer sign a note recelvable for a large purchase. How is a note receivable different from an accounts receivable? ccounting Principles 1 Chapter 7 Worksheet Gardner/Hruzz 12. Below are transactions showing eoods sold in exchange for the following notes. Answer the questiona and make the journal entries to record the sales transaction and then the payment. Do this for each note. (The cost of Mr. Joseph's order was 2,500. The cost of Mr, Ray's order at 2,000.) Promissorv Note Temolate Promissory Note Amount: Date: 11/s/20n sing I Mr. Loseph make commitment to pay CAM Company, the Sum of $4,000, . Aleparment is to be made in the for on the following date, (month) (day) 20 (year) IN WITNESS WHEREOF, I set my hand under seal this 4 _ _the day] of November [month], 2021_ and l acknowledge receipt of a completed copy of this instrument. WG. 2 compl Sient [Signature of barrower] Notary Public-SEAL. My Commission Expire a. The above is called a b. The maker of the note is: c. The payee of the note is: d. The principal of the note is: e. The interest rate is: f. The total interest that will be received is: B. The maturity date is: h. Journal Entries (issuance, Accrual of interest at the end of the year, Receipt of payment at the due date) Promissorv Note Temalate Promissory Note Amount: Date: juy 7,2020 250000 I Mr. Alay, make commitment to pay Ava Company, the Sum of 5 2500.00 Repayment is to be made in 60 days at the interest rate of 224 Maturity date of IN WITNESS WHEAEOF, I set my hand under seal thls July 6 th of 2021 and 1 acknowledge receipt of a completed copy of this instrument. Mh. Ray. Sign: [signature of borrower] Notary Public - 5EAl Aly Cormmission Expire 30ax/xox a. The maker of the note is: b. The payee of the note is: c. The principal of the note is: d. The interest rate b: e. The total interest that will be received is: anting Principles 1 Chapter 7 Worksheet Gardner/Hruza f. The maturity date is: 8. Journal Entries: (Date of the note, Maturity date of the note) 1. Receivables are amounts due to the business. Accounts Receivable are amounts due from 2. Prepare the journal entry to record the sale of a television for $2,485 to a customer that used a Visa credit card that charges a company 3% 3. To account for uncollectible accounts (bad debts), companies that make sales on credit may use either the method or the method. 4. Which of these two methods violates the Matching Principle (Expense Recognition principle)? 5. If a company uses the allowance method, the company must bad debts expected from the period's sales. 6. What are the two advantages the allowance method has over the direct write off method? a. b. 7. The is a contra asset account which reduces the Accounts feceivable account to it's 8. If a company estimates that its uncollectible accounts for the period is $1,284, what is the journal entry at the end of that period? a. b. If the balance in the Accounts fecelvable account is $128,446 and the balance in the Allowance account is $1,784 after the above journal entry, how much is reported on the Balance Sheet for Accounts Receivable? Answer: 9. ACME Company determines that the account of Beta Corp. for $700 is uncollectible. a. If ACME used the Direct Write-off methed to account for uncollectible accounts the journal entry to write off the account is: b. If Beta Corp sends a check for $700 six months later, what entryfies) is/are made c. If ACME used the Allowance method to acceunt for uncollectible account, the journal entry to write off an account is: d. If Beta Corp sends a check for $700 six months later, what entry(ies) is/are made (assume the write-off is the one above, using the Allowance method): 10. When a company is required to use the Allowance method to estimate Bad debt expense, there are 3 methods discussed in the textbook that may be used for estimating Bad debt expense. a. Which method is known as an income statement method? b. Which methods are known as balance sheet methods? 1. ii. 11. Sometimes a seller may have a customer sign a note recelvable for a large purchase. How is a note receivable different from an accounts receivable? ccounting Principles 1 Chapter 7 Worksheet Gardner/Hruzz 12. Below are transactions showing eoods sold in exchange for the following notes. Answer the questiona and make the journal entries to record the sales transaction and then the payment. Do this for each note. (The cost of Mr. Joseph's order was 2,500. The cost of Mr, Ray's order at 2,000.) Promissorv Note Temolate Promissory Note Amount: Date: 11/s/20n sing I Mr. Loseph make commitment to pay CAM Company, the Sum of $4,000, . Aleparment is to be made in the for on the following date, (month) (day) 20 (year) IN WITNESS WHEREOF, I set my hand under seal this 4 _ _the day] of November [month], 2021_ and l acknowledge receipt of a completed copy of this instrument. WG. 2 compl Sient [Signature of barrower] Notary Public-SEAL. My Commission Expire a. The above is called a b. The maker of the note is: c. The payee of the note is: d. The principal of the note is: e. The interest rate is: f. The total interest that will be received is: B. The maturity date is: h. Journal Entries (issuance, Accrual of interest at the end of the year, Receipt of payment at the due date) Promissorv Note Temalate Promissory Note Amount: Date: juy 7,2020 250000 I Mr. Alay, make commitment to pay Ava Company, the Sum of 5 2500.00 Repayment is to be made in 60 days at the interest rate of 224 Maturity date of IN WITNESS WHEAEOF, I set my hand under seal thls July 6 th of 2021 and 1 acknowledge receipt of a completed copy of this instrument. Mh. Ray. Sign: [signature of borrower] Notary Public - 5EAl Aly Cormmission Expire 30ax/xox a. The maker of the note is: b. The payee of the note is: c. The principal of the note is: d. The interest rate b: e. The total interest that will be received is: anting Principles 1 Chapter 7 Worksheet Gardner/Hruza f. The maturity date is: 8. Journal Entries: (Date of the note, Maturity date of the note)