2020 Assignment Print View Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26. Brinker had $4,800 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit? O Debit Accounts Receivable $4,800; credit Sales $4,800. O Debit Cash $4,680; debit Credit Card Expense $120; credit Sales $4,800. O Debit Cash $4,800; credit Sales $4,800. Debit Cash $4,920; credit Credit Card Expense $120; credit Sales $4,800. Debit Accounts Receivable $4,680; debit Credit Card Expense $120; credit Sales $4,800. References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C1 Describe accounts receivable and how they occur and are recorded. 21. Award: 4.00 points Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry? $4,625 $3,960 $5.290 $4,750 $4,825 References Multiple Choice Difficulty: 3 Hard Learning Objective: 07-P3 Estimate uncollectibles based on sales and accounts receivable. 22 Award4.00 points On July 9. Mifflin Company receives an $8,500, 90 day, 8% note from customer Payton Summers as payment on account Compute the amount due at maturity for the note and interest. (Use 360 days a year) $8.628 $8.192 $8,613 O $8,500 $8,670 References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C2 Describe a note receivable, the computation of its maturity date, and the recording of its existence. 23. Award: 4.00 points Winkder Company borrows $85.000 and pledges its receivables as security. The journal entry to record this transaction would be: O Debit Cash of $85,000 and credit Accounts Receivable $85.000 O Debit Cash of $85,000 and credit Accounts Payable $85,000, O Debit Note Receivable $85.000 and credit Accounts Receivable $85,000 O Debit Cash $85,000 and credit Notes Payable $85,000. Debit Accounts Receivable $85,000 and credit Notes Payable $85,000. References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C3 Explain how receivables can be converted to cash before maturity. Assignment Print View 24. Award: 4.00 points Mullis Company sold merchandise on account to a customer for $625, terms n/30. The Journal entry to record this sale transaction would be: O Debit Cash of $625 and credit Sales $625. O Debit Cash of $625 and credit Accounts Receivable $625. O O Debit Accounts Receivable $625 and credit Sales $625. Debit Accounts Receivable $625 and credit Cash $625. Debit Sales $625 and credit Accounts Receivable $625. References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C1 Describe accounts receivable and how they occur and are recorded. 25. Award: 4.00 points Frederick Company borrows $63.000 from First City Bank and pledges its receivables as security Which of the following is true regarding this transaction: First City Bank is the factor in this transaction. Frederick Company's financial statements must disclose the pledging of receivables. Frederick Company no longer has the risk of bad debts. First City Bank takes ownership of the receivables at the time of the pledge. No journal entry is required for this event References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C3 Explain how receivables can be converted to cash before maturity