I need some help with my Accounting Homework

Question 22

Separate accounts receivable information for each customer is important because it reveals all of the following except:

• How much each customer has purchased on credit.
• How much each customer has paid.
• How much each customer still owes.
• The basis for sending bills to customers.
• When the customer intends to pay outstanding balances.

Question 23

A credit sale of $5,275 to a customer would result in which of the following?

• A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger.
• A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger.
• A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger.
• A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger.
• A credit to Sales and a credit to the customer's account in the accounts receivable subsidiary ledger.

Question 24

Sellers allow customers to use bank (or third-party) credit cards for all of the following reasons except:

• To be able to charge more due to fees and interest.
• To avoid the risk of customers not paying.
• To speed up receipt of cash from the credit sale.
• To increase total sales.
• To avoid having to decide who gets credit and how much.

Question 25

A promissory note:

• Is a short-term investment for the maker.
• Is a written promise to pay a specified amount of money at a certain date.
• Is a liability to the payee.
• Is another name for an installment receivable.
• Cannot be used in payment of an account receivable.

Question 26

The maturity date of a note receivable:

• Is the day of the credit sale.
• Is the day the note was signed.
• Is the day the note is due to be repaid.
• Is the date of the first payment.
• Is the last day of the month.

Question 27

A finance company or bank that purchases and takes ownership of another company's accounts receivable is called a:

• Payer.
• Pledger.
• Factor.
• Payee.
• Pledgee.

Question 28

Factoring receivables is beneficial to a seller for all of the following reasons except:

• Allows firms to receive cash earlier.
• Passes ownership of the receivables to the factor.
• There are no fees for factoring.
• Seller avoids the cost of billing and accounting for receivables.
• May pass the risk of bad debts to the factor.

Question 29

• Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $46,800.
• Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
• Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000.
• Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.
• Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.

Question 30

The account receivable turnover measures:

• How long it takes to sell accounts receivable to a factor.
• How often, on average, receivables are received and collected during the period.
• The relation of cash sales to credit sales.
• How long it takes to sell merchandise inventory.
• All of the options are correct.

Question 31

The matching principle, as applied to bad debts, requires.:

• The use of the direct write-off method for bad debts.
• That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
• That bad debts not be written off.
• The use of the allowance method of accounting for bad debts.
• That bad debts be disclosed in the financial statements.

Question 32

Honoring a note receivable indicates that the maker has:

• Signed.
• Paid in full.
• Guaranteed.
• Notarized.
• Cosigned.