PLEASE HELP WITH ACCOUNTING QUESTIONS: [p 272-280] Unless the amounts involved are inmaterial, what is required with regard to bad debts? The goal is to achieve "matching." Group of answer choices Bad debts must be written off four years after the original sale and the "deadbeat" customer must be reported to the IRS Companies must initiate legal action in court against people who do not pay their debts Companies are required to report a list of debtors (those who do not pay their debts) to the SEC Bad debts expense must be estimated and reported in the same period as the associated sales were reported Flag this Question Question 3 1 pts [p 271-278 [Bad debts refers to the amount of money customers owe that is not expected to be collected, or that you simply give-up on ever collecting. The net amount of "accounts receivable" may need to be adjusted to show that we do not really expect to collect everything that customers owe us.] Most of the following statements are true about accounting for bad debts. Which statement is FALSE? Group of answer choices The direct write-off method is prescribed for IFRS but is not allowed for US companies In most cases, U.S. GAAP requires companies to estimate bad debt expense, rather than using the direct write-off method The direct write-off method is "not GAAP" but may be used if the amounts are inmaterial The allowance method involves estimating bad debts expense using either the percent of sales approach (using income statement amounts) or the percent of receivables approach (using balance sheet amounts) Flag this Question Question 4 1 pts [p 282-290] Speedy Serv was unable to collect some of its accounts receivable from customers. Speedy decided to sell its receivables to Surety, a collection agency. Surety specializes in buying accounts receivable from other companies and trying to collect from the "dead-beat" customers. Speedy Serv signed over $8,000 in accounts receivable to Surety, and received $5,000 from Surety as payment for the receivables. Surety is called a: Group of answer choices Payee Ninja Pledger Factor Flag this Question Question 5 1 pts [p 275-283] Acme uses a certain method to estimate bad debts expense. Acme examines each, individual outstanding account receivable, such as the receivable from Henry, the receivable from Mary, the receivable from Pat, etc. Acme then separates the accounts receivable into different groups depending on how long they have been past due (30 days past due, 60 days past due, 90 days past due, etc.) What method is Acme using? Group of answer choices Percentage of sales method for accounts receivable Direct write-off of accounts receivable SEC allowance method for accounts receivable Aging of accounts receivable method Flag this Question Question 6 1 pts [p 276-286]. As a reminder from previous material, the formula for calculating interest is: Principal x Interest Rate x Time The Interest rate is always stated in "annual" terms. If the Time is other than one exact year, you must adjust for that. For instance, if the time were 3 months, the formula would be Principal x Interest Rate x 3/12. One could also express the time in days; the three months would become 90/360.] The bank loans Speedy Serve $6,000 so Speedy can install a new lift in its auto service bay. Speedy signs a promissory note to repay the $6,000 plus interest in 2 months. (It is a 60-day or 2-month note). The note carries interest at a rate of 8%. What is the total amount (principal plus interest) that Speedy must pay the bank when the note matures in 2 months? Group of answer choices $6,080 $5,520 $6,480 $6,000 Flag this Question Question 7 1 pts [p 280-288] On August 1, Allied Machinery sold a $75,000 lathe to Bronte. Rather than paying cash, Bronte signed a promissory note, promising to redeem (pay off) the note in 90 days. What is the journal entry Allied, the seller, should record on On August 1? Group of answer choices Debit Credit Note receivable 75,000 Sales revenue 75,000 Debit Credit Cash 75,000 Sales revenue 75,000 Debit Credit Sales deferred 75,000 Sales revenue 75,000 Debit Credit Sales revenue 75,000 Cash 75,000 [Review] Murton is a retailer in Illinois that sells lawn-care products to the public. Murton obtains its inventory from Dawson, a wholesale distributor in Indiana. On January 10, Murton ordered $20,000 in lawn-care products from Dawson. The goods were shipped to Murton "F.O.B. Destination" and were also insured while in-transit. Should Murton include the shipping and insurance costs in the value of this new inventory? Group of answer choices No Yes