Accounts receivable and notes receivable due within one year should be netted and presented as one figure in the current asset section of the balance sheet. True False eTextbook and Media Turrent Attempt in Progress Which of the following best describes the impact on the financial records resulting from a credit sale of $1,000 to a customer? A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the subsidiary ledger. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the subsidiary ledger. A credit to the Accounts Receivable account in the general ledger. A debit to the Accounts Receivable account in the general ledger. The percentage of receivables approach to estimating uncollectible receivables often involves aging the receivables. emphasizes income statement relationships. ignores the existing balance in the Allowance for Doubtful Accounts. results in an increase in write-offs. Under the allowance method, estimated uncollectible receivables are credited to uncollectible accounts expense. bad debts expense. allowance for doubtful accounts. accounts receivable. Writing off an uncollectible account under the allowance method requires a debit to Allowance for Doubtful Accounts. Accounts Receivable. Uncollectible Accounts Expense. Bad Debts Expense. Promissory notes are often used when individuals and companies lend or borrow money. when the amount or the credit period are longer than normal. in settlement of accounts receivable. all of these are correct. For an interest-bearing note with accrued interest, the amount due at maturity is the unpaid interest. carrying value. face value. face value plus unpaid interest. Evan Electrical borrowed $47,000 from Radiant Lending by signing an 8% promissory note due in 120 days. Which of the following will be part of the journal entry required by Radiant to initially record this transaction? Debit to Accounts Receivable for $48,236.16. Debit to Accounts Receivable for $47,000.00. Debit to Notes Receivable for $47,000.00. Debit to Notes Receivable for $48,236.16. Which of the following is a reason to sell receivables: companies may not want to hold large amounts of receivables. billing and collection can be time consuming and costly. selling receivables may be the only reasonable source of cash. all of these are correct. ABC Company has net credit sales of $400,000, opening accounts receivable of $75,000, and closing accounts receivable of $120,000. What is the days sales in inventory? 89 days. 68 days. 4 days. 110 days. DEF Company performs an accounts receivable aging analysis each period to determine the estimated Allowance for Doubtful Accounts. At the year end, DEF determined that the Allowance for Doubtful Accounts should be $9,500. Assuming an opening credit balance of $500, what adjustment should be made to the Allowance for Doubtful Accounts at the year end? Credit for $9,500. Credit for $9,000. Credit for $10,000. No adjustment required. Other receivables include nontrade receivables such as loans to company officers. True False A promissory note is a written promise to pay a specific amount of money on demand or at a definite time. True False eTextbook and Media The collection period should be the same for all industries. True False
