Question 31 8 points On May 1 of the current year, Yam Jam sold produce to a customer for $3,000 with credit terms 2/10, 1/40. How would Yarn jam record the sale on May 12 2.940 Accounts Receivable Cash Discount OA Sales Revenue 3,000 3000 Accounts Receivable Cash Discount Sales Revenue 2940 2,940 Accounts Receivable Sales Revenue 2940 Accounts Receivable Sales Revenue 3,000 3,000 On January 10 of the current year, Cheese Valley sold cheese to a customer for $6,000 with credit terms 1/10,n/30. The customer made the correct payment on January 16. How would Cheese Valley record the collection of cash on January 162 Cash Accounts Receivable 5,940 5,940 OA Cash 5,940 B. Sales Discount 60 Sales Revenue 6,000 Cash 5,940 Sales Discount Accounts Receivable 6,000 6,000 Cash D. Accounts Receivable Question 33 8 points Save Ans Net accounts receivable (Net realizable value) is calculated as: Beginning balance of Accounts Receivable less all write offs for the period. Account Receivable less Sales Discounts and Sales Allowances OB. Accou Net Revenues minus Sales Discount and Sales Allowance Accounts receivable minus Allowance for Uncollectible Accounts Before any adjustments, Snow Company had an end of the year accounts receivable balance of $225,000 and the allowance for uncollectible accounts had a $800 credit balance. An analysis of accounts receivable determines that the allowance for uncollectible accounts should be 4% of accounts receivable. The adjusting entry would include a credit to Allowance for Uncollectible Accounts of: $8,000 B. 59.800. oc, 59,000 OD. 8,200. Question 35 8 points Save Answer Kiwi Corp uses the direct write-off method. They have an actual bad debt of $500. What Journal entry will they record at the time the bad debt occurs? Cannot determine without Allowance for Uncollectible Accounts balance CA Allowance for Uncollectible Accounts Accounts Receivable B. $500 $500 Bad Debt Expense $500 Allowance for Uncollectible Accounts $500 $500 Bad Debt Expense Accounts Receivable D. $500 Question 36 8 points Sant Answer Space United has to write off $5,000 in uncollectible accounts receivable. What Journal entry will they record using the allowance method? 197 Bad Debt Expense 5,000 Accounts Receivable 5,000 Bad Debt Expense 5,000 Allowance for Uncollectible Accounts B. 5,000 Allowance for Uncollectible Accounts 5,000 Accounts Receivable . 5,000 Allowance for Uncollectible Accounts 5,000 D. Bad Debt Expense 5,000 Berry Farms delivers and sells product worth $1,000 to a store on account. What will Berry Farm record? Debit Accounts Receivable $1,000, credit Sales Revenue $1,000. OA Debit Cash $1,000, credit Sales Revenue $1,000 OB Debit Sales Revenue $1,000, credit Accounts Receivable 51,000. Debit Cash $1,000, credit Deferred Revenue$1,000 The normal balance of the account "Sales Allowances" is a _because Debit; it is a contra revenue account to Sales Revenue o Credit, it is a contra asset account to Accounts Receivable Debit, it is an expense in the income statement o Credit; it is a contra expense account to Bad Debt Expense OD Question 39 8 points Save Answer Santo's Shed had account balances in Accounts Receivable of $219,000 and in Allowance for Uncollectible Accounts of $600 (debit) before any adjustments on December 31. An analysis on December 31 determined that the allowance for uncollectible accounts should be 5% of accounts receivable. The amount of the end of period adjustment would be: $11.550 $10.950 B 930 C 510.350 D. 510,550 Question 40 8 points Save Answer Marco Manufacturing lends cash to the CEO on July 1, 2020 and accepts a $9,000 note receivable that offers 8% interest and is due in twelve months. How would Marco Manufacturing record the year-end adjustment to accrue interest on December 31, 2020? Interest Revenue 600 Interest Receivable 600 Interest Receivable 360 B. Interest Revenue 360 Interest Receivable 600 Interest Revenue 600 Interest Receivable 300 OD. Interest Revenue 300
