Please answer and explain

1. Trade receivables are classified as current assets when they are reasonable expected to be collected

a. Within one year

b. Within normal operating cycle

c. Within one year or within the normal operating cycle, whichever is shorter

d. Within one year or within the normal operating cycle, whichever is longer

2. If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as

a. a deduction from sales in the income statement.

b. an item of "other income and expense" in the income statement.

c. a deduction from accounts receivable in determining the net realizable value of accounts receivable.

d. sales discounts forfeited in the cost of goods sold section of the income statement.

3. Which of the following should be recorded in Accounts Receivable?

a. Receivables from officers

b. Receivables from subsidiaries

c. Dividend receivable

d. Sale of goods on account to a customer

4. Which of the following accounts is not affected when an account receivable written off as uncollectible is recovered?

a. Cash

b. Bad debts expense

c. Accounts Receivable

d. Allowance for bad debts

5. Which of the following transaction will decrease the recorded accounts receivable?

a. Sale of goods on account.

b. Collection of accounts previously written off.

c. Return of goods sold to a customer on account.

d. Cash discount availed using the net method.

6. Jedrick Company prepares an account receivable aging schedule with a series of computations as follows: 2% of the total peso balance of accounts from 1-60 days past due, plus 5% of the total peso balance of accounts from 61-120 days past due and so on. How would you describe the total of the amounts determined in this series of computations?

a. It is the amount of uncollected accounts expense for the year.

b. It is the amount that should be added to the allowance for uncollectible accounts at year-end.

c. It is the amount of the desired credit balance of the allowance for uncollectible accounts to be reported in the year-end financial statements.

d. When added to the total of accounts written off during the year, this new sum is the desired credit balance of the allowance account.

7. When the allowance method of recognizing uncollectible account expense is used, the entries at the time of collection of an account previously written off would

a. Increase profit.

b. Increase the amortized cost of accounts receivable.

c. Decrease profit.

d. Decrease the amortize cost of accounts receivable.

8. Courage Company, which has an adequate amount in its allowance for doubtful accounts, write-off as uncollectible an account receivable from a bankrupt customer. This action will:

a. Have no effect on total current assets

b. Reduce net income for the period

c. Reduce total current assets

d. Reduce the amount of total equity

9. A non-interest-bearing note receivable:

a. Cause no interest revenue to be recorded.

b. Includes a specified principal amount plus specified interest

c. Includes a specified principal amount but an unspecified interest

d. Includes an unspecified principal amount and unspecified interest

10. On July 1 of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of the interest are due on June 30 of next year. On December 31 of the current year, the entity should report in the statement of financial position

a. No interest receivable

b. A deferred credit for interest applicable to next year

c. Interest receivable for the interest accruing this year

d. Interest receivable for the entire amount of the interest due on June 30 of next year

11. The amortization of discount on note receivable will:

a. Increase the amount of interest received to arrive at interest income.

b. Decrease the amount of interest received to arrive at interest income.

c. Decrease the carrying value of the note receivable.

d. Increase the face value of the note receivable.