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18. Accounts Receivable are reported on the Balance Sheet at their: a. Present value b. Book value c. Net realizable value d. Maturity value 19.

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18. Accounts Receivable are reported on the Balance Sheet at their: a. Present value b. Book value c. Net realizable value d. Maturity value 19. Which of the following statements is true when a company has a debit balance in its Allowance for Doubtful Accounts account (before adjustment at year end)? a. Uncollectible accounts receivable were overestimated at the end of the previous year b. Uncollectible accounts receivable were underestimated at the end of the previous year c. The company should not record any bad debts expense at the current year end d. Write offs of accounts receivable were less than anticipated during the current year 17. The following information is available for Stark Company: I 2020 2019 Credit Sales $800,000 $550,000 Sales Returns 100,000 50,000 Gross Accounts Receivable 27,000 24,000 The accounts receivable collection period for 2020 is: a. 13.30 days b. 9.80 days c. 27.45 days d. 26.58 days 15. The journal entry to record the dishonouring (no hope of collection of a note receivable includes a debit to: a. Accounts Receivable b. Bad Debts Expense c. Loss on Notes Receivable d. Allowance for Doubtful Accounts 16. Jones Company uses the Balance Sheet approach to calculate bad debts and record the allowance related to them. It has a credit balance of $9,000 in its Allowance for Doubtful Accounts account at year end (before adjustment). Jones Company estimates that $90,000 of its accounts receivable are uncollectible at year end. The adjusting journal entry at year end to record bad debts will include a debit to bad debts expense for: a. $90,000 b. $99,000 c. $81,000 d. $9,000 13. On March 5, 2020, Herbivore Company accepted a $3,000, 2 month, 10% note in granting a time extension on the past due Accounts Receivable of Ermel Gober. On May 5, 2020, Ermel Gober paid the maturity value of her $3.000 note. What is the journal entry made by Herbivore Company to record the payment of the note? (All interest is paid at maturity) 3,000 a. Cash 50 Interest Revenue Notes Receivable-E.Gober 3,050 3,300 b. Cash Interest Revenue Notes Receivable E. Gober 300 3,000 3,050 C. Cash 50 Interest Revenue a. Cash 3,000 50 Interest Revenue Notes Receivable-E.Gober 3,050 b. Cash 3,300 300 Interest Revenue Notes Receivable-E. Gober 3,000 C. Cash 3,050 Interest Revenue Notes Receivable-E. Gober 50 3,000 d. Cash 3,300 Notes Receivable-E. Gober 3,300 e. Cash 3,050 Accounts Receivable-E. Gober 3,050

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