1. The term "receivables" refers to

a. amounts due from individuals or companies.

b. merchandise to be collected from individuals or companies.

c. cash to be paid to creditors.

d. cash to be paid to debtors.

2. Blue Company on May 15 sells merchandise on account to Green Co. for $7,500, terms 2/10, 1/15, n/30. On May 20 Green Co. returns merchandise worth $1,500 to Blue Company. On May 28 payment is received from Green Co. for the balance due. What is the amount of cash received?

a. $2,900

b. $5,880

c. $5,940

d. $6,000

3. Mack Sports, Inc. sells football equipment. On March 10, they shipped $2,500 worth of football uniforms and helmets to Bow High School, terms 2/10, n/30. On March 18, they received an order from Ridger High School for $1,750 worth of shoulder and knee pads to be produced in April. On March 20, Bow High School returned $250 of defective merchandise. Mack has received no payments from either school as of month-end. What amount will be recognized as net accounts receivable on the balance sheet as of March 31?

a. $2,250

b. $2,500

c. $4,000

d. $4,250

4. An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 debit balance, the adjustment to record bad debts for the period will require a

a. debit to Bad Debt Expense for $15,100.

b. debit to Allowance for Doubtful Accounts for $12,900.

c. debit to Bad Debt Expense for $12,900.

d. credit to Allowance for Doubtful Accounts for $14,000.

Important note:

PLEASE SHOW WORK FOR ALL QUESTIONS!