here the operating cycle extends beyond one year because of normal credit terms as in the case of installment sales. a. The entire receivables are classified as current with disclosure of the amount not realizable within one year b. The entire receivables are shown as noncurrent c. The portion due i

here the operating cycle extends beyond one year because of normal credit terms as in the case of installment sales. a. The entire receivables are classified as current with disclosure of the amount not realizable within one year b. The entire receivables are shown as noncurrent c. The portion due i

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 19MC: Which of the following is true of a maturity date? A. It must be calculated in days, not in months...

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2.Which of the following statements is valid? a. Net accounts receivable is not affected by a recovery of an account previously written off. b. A three year, non-interest bearing promissory note is initially recorded in the accounts at its face value. c. When individual customers' accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers' accounts in the statement of financial position. d. When the rate stated on a note is greater than the prevailing market rate of interest for similar obligations, the present value of the note at initial recognition is greater than its face value.
25) Under the direct-write-off method, uncollectible accounts expense is recognized A. As a percentage of net sales during the period. B. As a percentage of net credit sales during the period. C. As indicated by aging the accounts receivable at the end of the period. D. As specific accounts receivable are determined to be worthless.
An account becomes uncollectible Oa. There is no general rule for when an account becomes uncollectible. Ob. at the end of the fiscal year Oc. when a discount is availed on notes receivable Od. when an account receivable is converted into a note receivable
1. Which of the following note shall be discounted to get the initial measurement? A. Interest bearing note due in 3 years B. Note due in 12 months C. Non-interest bearing note due in 3 years D. Note due in 6 months 2 Which is true concerning the presentation of receivables in the statement of financial position? A. Non-trade receivable is presented as a non-current asset B. Only trade accounts receivable and trade notes receivable shall be presented as "Trade and Other Receivable" C. Trade and Non-trade Receivables are shown separately in line with materiality and aggregation principle D. Trade and Non-Trade Receivables which are currently collectible shall be presented as one line item called "Trade and Other Trade receivables"
which of the following statements is not valid in determining statement of financial position disclosure of accounts receivable?a. accounts receivable should be identified on the statement of financial position as "pledged" if they are used as security for a loan though the loan is shown on the same statement of financial position as a liability.b. the portion of installment accounts receivable from customers which falls due more than 12 months from the statement of financial position date usually would be excluded from current assetsc. allowance to be deducted from accounts receivable for discounts returns and adjustments to be made in the future on accounts are shown in the current statement of financial positiond. trade receivables are best shown separately from nontrade receivables where amounts of each are material
Prepare the year-end adjusting entry for bad debts according to each of the following situations: Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $610,084 and Allowance for Doubtful Accounts has a balance of $20,670. What is the net realizable value of the accounts receivable? Select the correct answer. $20,670 $610,084 $630,754 $589,414
At the beginning of the current period, Whispering Winds Corp. had balances in Accounts Receivable of $200,600 and in Allowance for Doubtful Accounts of $9,630. During the period, it had net credit sales of $770,000 and collections of $746,470. It wrote off as uncollectible accounts receivable of $7,481. Uncollectible accounts are estimated to total $22,900 at the end of the period. (Omit recording cost of goods sold.) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period (c) Record bad debt expense for the period. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Liabili ties Assets Stockholders' Equity Allow. Retained Earnings For Doubtf Comm Accts. Cash ul on Rev. Exp. Rec. Accts Stock…
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $664,657 and Allowance for Doubtful Accounts has a balance of $21,609. What is the net realizable value of the accounts receivable? a.$21,609 b.$664,657 c.$643,048 d.$686,266
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
Which of the following is true of a maturity date? A. It must be calculated in days, not in months or years. B. It is the date when principal and interest on a note are to be repaid to the lender. C. It is the date of establishment of note terms between a lender and customer. D. It is not a characteristic of a note receivable.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period