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Ch7-A1 The accounts receivable turnover measures: A) How often, on average receivables are received and collected during the period B) How long it takes to

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Ch7-A1 The accounts receivable turnover measures: A) How often, on average receivables are received and collected during the period B) How long it takes to sell accounts receivable to a factor C) The relation of cash sales to credit sales. D) How long it takes to sell merchandise inventory E) All of the above. o. Learning Objective: Ch7-AI The quality of receivables refers to: 0. A) The creditworthiness of sellers B) The likelihood of collection without loss C) The speed of collection. D) Sales turnover. E) The interest rate. Learning Obiective: Ch7-A I. Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year. Coke's turnover was 9.3 for this year and 9.3 for last year. These results imply that: A) Coke has the better turnover for both years B) Pepsi has the better turnover for both years. C) Coke's turnover is improving. Coke's credit policies are too loose Coke is collecting its receivables more quickly than Pepsi in both years. D) E) Obiective: Ch7-P1 42. The materiality principle: A) States that an amount can be ignored if its effect on financial statements is unimportant to users B) Requires use of the allowance method for bad debts. C) Requires use of the direct write-off method. D) States that bad debts not be written off E) Requires that expenses be reported in the same period as the sales they helped prodace. Learning Objective: Ch7-P2 43. An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period of the sales, and (2) reports accounts receivable at the amount of cash to be collected is the: A) Allowance method of accounting for bad debts. B) Aging of notes receivable. C) Adjustment method for uncollectible debts. D) Direct write-off method of accounting for bad debts. E) Cash basis method of accounting for bad debts. Ch7-P2 its bad debts expense. At the end of the current year, the company's A company used the percent of sales method to determine unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales... 44. $245,000 debit 300 credit 900,000 credit All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. what amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? A) $925 B) $1,225 C) $4,200 D) $4,500 E) $45,000 Ch7-P3 The amount due on the maturity date of a $6,000, 60day 8%, note receivable is: A) $6,000, B) $6,480. C) $5,520. n $6,080. 45

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