8.

LO 9.2Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method?

1. $26,082
2. $6,164
3. $260,820
4. $61,640

10.

LO 9.2Which of the following estimation methods considers the amount of time past due when computing bad debt?

1. balance sheet method
2. direct write-off method
3. income statement method
4. balance sheet aging of receivables method

18.

LO 9.4Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods?

1. $3,100
2. $13,800
3. $10,700
4. $77,500

19.

LO 9.6Which of the following is true of a maturity date?

1. It must be calculated in days, not in months or years.
2. It is the date when principal and interest on a note are to be repaid to the lender.
3. It is the date of establishment of note terms between a lender and customer.
4. It is not a characteristic of a note receivable.

22.

LO 9.6A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date?

1. Interest Revenue, Interest Expense, Cash
2. Interest Receivable, Cash, Notes Receivable
3. Interest Revenue, Interest Receivable, Cash, Notes Receivable
4. Notes Receivable, Interest Revenue, Cash, Interest Expense