Question
(This is all part of one question.) 1a). A note receivable due in 6 months is listed on the balance sheet under the caption: investments
(This is all part of one question.)
1a). A note receivable due in 6 months is listed on the balance sheet under the caption:
| investments |
| fixed assets |
| long-term liabilities |
| current assets |
1b). After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net expected realizable value of the accounts receivable?
| $450,000 |
| $25,000 |
| $455,000 |
| $425,000 |
1c). An estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. After preparing the adjusting entry at the end of the year, the balance in the Uncollectible Accounts Expense is:
$110 |
$780 |
$890 |
$670 |
1d). Using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a:
both a debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts |
credit to Accounts Receivable |
credit to Allowance for Doubtful Accounts |
debit to Accounts Receivable
|
1e). On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the:
Uncollectible accounts expense for the year |
total estimated uncollectible accounts as of the end of the year |
total of the accounts receivables written-off during the year |
sum of all accounts that are past due |
1f). A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is:
$10,000 |
$9,550 |
$10,300 |
$450 |
1g). A 60-day, 10% note for $8,000, dated April 15, is received from a customer on account. The face value of the note is:
$8,600 |
$8,000 |
$8,800 |
$7,200 |
1h). A $6,000, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is:
debit Cash, $6,060; credit Notes Receivable, $6,060 |
debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060 |
debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue, $60 |
debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Receivable, $60 |
1i). Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is:
$17,500 |
$ none of the above |
$18,500 |
$18,000 |
1j). On September 1, Blazer Company receives a 10% interest bearing note from Ram Company to settle a $12,000 account receivable. The note is due in six months. At December 31, Blazer should record interest revenue of:
$600 |
$400 |
$0 |
$100 |
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