E.

Fill-in-the-Blank

Instructions: Answer the following questions or complete the statements by writing the appropriate

words or amounts in the answer blanks.

1.

All money claims against other entities, including people, business firms and other organizations

are called ___________ .

2.

A (n) ______________ is a formal, written instrument of credit that has been received for the

amount a customer owes.

3.

The ________________ method of accounting for uncollectible accounts provides an expense

for uncollectible receivables in advance of their write-off.

4.

The maturity value of a $150,000, 60-day, 15% note receivable is

5.

Allowance for Doubtful Accounts has a debit balance of $1,500 at the end of the year, before

adjustments. Sales for the year amounted to $740,000, and sales returns and allowances

amounted to $25,000. If Bad Debts expense is estimated at 1% of net sales, the

amount of the appropriate adjusting entry will be

6.

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year, before

adjustments. Sales for the year amounted to $950,000, and sales returns and allowances amounted

to $20,000. If the analysis of the accounts in the customers' ledger indicates doubtful accounts

of $30,000, the amount of the appropriate adjusting entry will be

7.

The maturity value of a $300,000, 90-day, 12% note receivable is

8.

The due date of a 90-day note receivable dated July 12 is

9.

A note that the maker fails to pay on the due date is referred to as a(n) ____________ note.

10.

The due date of a 120-day note receivable dated on August 18 is _____________ .