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Exam 8: Receivables

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Question 51

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The existence of uncollectible accounts is evidence of poor credit policies.

A) True
B) False

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Question 52

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The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the percentage of net sales method. -The Allowance for Uncollectible Accounts balance (after adjustment) would be

A) $12,000.
B) $15,000.
C) $18,000.
D) $20,000.

E) None of the above
F) A) and D)

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Question 53

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Because bad debt losses are incurred to generate sales,they should be charged against the sales that they helped generate.

Each of the following is a characteristic of a promissory note except a(n)

The fee for factoring without recourse is normally higher than it would be with recourse.

The maturity value of a 60-day,9 percent,$4,000 note receivable is

Which of the following accounts is classified as a short-term financial asset?

The account Allowance for Uncollectible Accounts is classified as a(n)

The following data exist for Weaver Company: Calculate the receivables turnover and the average days' sales uncollected for 2014.(Round to 1 decimal point and even days,respectively. )

Which of the following topics involves a contingent liability?

The debtor named in a promissory note is called the payee.

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the accounts receivable aging method. -The Allowance for Uncollectible Accounts balance (after adjustment) would be

A company's acceptance of credit cards like Visa is an example of

What is a contingent liability,and how does it relate to the discounting of a note receivable at the bank?

Notes receivable due within 90 days and cash are examples of short-term financial assets.

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $1,000.Net sales for the year were $500,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts. -Using the percentage of net sales method,Uncollectible Accounts Expense would be debited for

Under the allowance method,when a year-end adjustment is made for estimated uncollectible accounts,

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a debit balance of $1,000.Net sales for the year were $500,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts. Using the accounts receivable aging method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

It is considered unethical to use the estimate for bad debts to purposely manipulate the amount of net income.

On December 31,Jameson Products has a $300 credit balance in Allowance for Uncollectible Accounts.It estimates that 4 percent of the $60,000 in sales are uncollectible.After the appropriate adjusting entry for uncollectible accounts has been made,what will be the balance in Allowance for Uncollectible Accounts using the percentage of net sales method? Indicate if the balance is a debit or credit.(Show your work. )