15) Accounts receivable accounts for specific customers are important because they show

A) The basis for sending bills to customers

B) How much each customer has paid

C) How much each customer still owes

D) How much each customer purchases

E) All of these

16) A credit sale of $2,500 to a customer would result in

A) A credit to Sales and a credit to the customer's account in the Accounts Receivable Ledger

B) A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in

the Accounts Receivable Ledger

C) A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the

Accounts Receivable Ledger

D) A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the

Accounts Receivable Ledger

E) A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the

Accounts Receivable Ledger

17) The accounting principle that requires financial statements to report all contingent liabilities is called 17)

______

A) Full disclosure

B) Relevance

C) Materiality

D) Matching

E) Evaluation

18) TechCom receives a 10%, 90-day note for $2,500. The interest on the note is

A) $36.99 B) $50.00 C) $61.64 D) $87.50 E) $58.79

19) On December 31 of the current year, TechCom's unadjusted trial balance included the following items:

Accounts Receivable, debit balance of $107,250; Allowance for Doubtful Accounts, credit balance of $1,900.

What amount should be debited to Bad Debt Expense, assuming 6% of outstanding accounts receivable as of

December 31 of the current year, are estimated to be uncollectible?

A) $4,535 B) $8,335 C) $3,755 D) $6,435 E) $2,835

20) Electron borrowed $75,000 from TechCom by signing a promissory note and pledging $85,000 in accounts

receivable as security. TechCom's entry to record the transaction should include a

A) Debit to Notes Receivable for $75,000

B) Debit to Accounts Receivable for $75,000

C) Debit Notes Payable for $75,000

D) Credit to Sales for $75,000

E) Credit to Notes Receivable for $75,000

21) Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is

A) Debit Cash Over and Short for $62

B) Debit Petty Cash for $62

C) Credit Cash for $62

D) Credit Cash Over and Short for $62

E) Debit Cash for $62