ACCOUNTING

What type of receivable is evidenced by a formal instrument and normally requires the payment of interest?

A trade receivable
A note receivable
Past-due accounts receivables
An account receivable

When is a receivable recorded by a service organization?

When the customer pays
When the related expenses are incurred
When the bill is sent to the customer
When service is provided on account

At what value are accounts receivable reported on the balance sheet?

Present value
Cash (net) realizable value
Fair market value
Maturity value

Short-term notes receivable are reported at their cash (net) realizable value.

True
False

Which one of these statements about promissory notes is incorrect?

The party making the promise to pay is called the maker.
A promissory note is not a negotiable instrument.
A promissory note is more liquid than an account receivable.
The party to whom payment is to be made is called the payee.

Which of the following should be classified as an “other” receivable?

Interest receivable
Notes receivable
Accounts receivable
Trade receivables

What type of receivables result from sales transactions?

Long-term receivables
Non-trade receivables
Other receivables
Trade receivables

Which one of the following is not a method used by companies to accelerate cash receipts?

Writing off receivables
Offering discounts for early payment
Accepting national credit cards for customer purchases
Selling receivables to a factor

Which of the following accounts is debited when a company factors its accounts receivable?

Loss on Sale of Accounts Receivable
Service Charge Expense
Accounts Receivable
Interest Expense

Which of the following is the value at which loans and receivables should be reported under IFRS?

Amortized cost
Maturity value
Net of bad debt expense
Cash realizable value
Exercise 8-5

Shamrock, Inc. has accounts receivable of $96,800 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,018 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below.

Balance, March 31 Estimated Percentage Uncollectible
Age of Accounts 2017 2016  
Current $67,300 $78,800 2 %
1–30 days past due 12,000 8,350 5
31–90 days past due 10,500 2,600 32
Over 90 days past due 7,000 1,050 47
$96,800 $90,800
Determine the total estimated uncollectibles.

The total estimated uncollectibles $
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the adjusting entry at March 31, 2017, to record bad debt expense.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Problem 8-1A

Teal Mountain Inc. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Calculate the total estimated bad debts on the below information.

Number of Days Outstanding
Total 0–30 31–60 61–90 91–120 Over 120
Accounts Receivable $478,000 $325,000 $85,000 $39,000 $16,000 $13,000
 
% uncollectible 1% 4% 5% 8% 11%
 
Estimated bad debts $

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

$

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

$

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

$

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

$

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

$

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

SHOW LIST OF ACCOUNTS
LINK TO TEXT https://edugen.wileyplus.com/edugen/courses/crs9002/common/art/out_VSP.png
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,000 debit.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
SHOW LIST OF ACCOUNTS
LINK TO TEXT https://edugen.wileyplus.com/edugen/courses/crs9002/common/art/out_VSP.png
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
SHOW LIST OF ACCOUNTS
LINK TO TEXT https://edugen.wileyplus.com/edugen/courses/crs9002/common/art/out_VSP.png
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entry(ies) necessary to (1) restore the account and (2) record the cash collection.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit
1. https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
2. https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
SHOW LIST OF ACCOUNTS
LINK TO TEXT https://edugen.wileyplus.com/edugen/courses/crs9002/common/art/out_VSP.png
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Question Attempts: 0 of 3 used   SAVE FOR LATER SUBMIT ANSWER
Problem 8-6A

On January 1, 2017, Bonita Industries had Accounts Receivable of $53,100 and Allowance for Doubtful Accounts of $3,600. Bonita Industries prepares financial statements annually. During the year, the following selected transactions occurred.

Jan.  5 Sold $4,500 of merchandise to Rian Company, terms n/30.
Feb.  2 Accepted a $4,500, 4-month, 8% promissory note from Rian Company for balance due.
12 Sold $11,520 of merchandise to Cato Company and accepted Cato’s $11,520, 2-month, 10% note for the balance due.
26 Sold $11,600 of merchandise to Malcolm Co., terms n/10.
Apr.  5 Accepted a $11,600, 3-month, 8% note from Malcolm Co. for balance due.
12 Collected Cato Company note in full.
June  2 Collected Rian Company note in full.
15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 11% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.)  (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
SHOW LIST OF ACCOUNTS
LINK TO TEXT

LINK TO TEXT

https://edugen.wileyplus.com/edugen/courses/crs9002/common/art/out_VSP.png
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Question Attempts: 0 of 3 used   SAVE FOR LATER SUBMIT ANSWER

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»