NAL EXAMINATION--Page 5 26. The maturity July 3 is a. $30,000 b. $35,000. c. $30,500. d. $33,000 value of a $30,000, 10, 60-day note receivable dated of 27. Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of a. inadequate internal control b. external verification c. segregation of duties. d. duplication of effort 28. Harwell Company lends Newton Company $60,000 on April 1. accepting a four-month, 93 interest note. Harwell Company prepares financia statements on April 30. What the financial statements can be prepared? a. Interest Receivable adjusting entry should be made before 450 450 b. Cash 450 450 Interest Revenue 60,000 1,800 60, 000 1.800 1.800 Cash Interest Revenue .. 29. Two bases for estimating uncollectible accounts are: a. percentage of assets and percentage of sales. b. percentage of current assets and percentage of sales. d. percentage of receivables and percentage of total revenue. 30. Closing entries a. reduce the number of permanent accounts. b. cause the revenue and expense accounts to have zero balances. c. are prepared before the financial statements d. summarize the activity in every account. 31. Unearned revenues are a. earned and recorded as liabilities before they are received. b. earned but not yet received or recorded. c. received and recorded as liabilities before they are earned. d. earned and already received and recorded 32. Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited a. when a credit sale is past due. b. whenever a pre-determined amount of credit sales have been made c. when an account is determined to be uncollectible d. at the end of each accounting period