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strayer acc100 week 5 QUIZ CH 9

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Question;Question 1;Under the direct write-off method of accounting for;uncollectible accounts;the allowance account is increased for the actual amount of;bad debt at the time of write-off.;bad debt expense is always recorded in the period in which;the revenue was recorded.;balance sheet relationships are emphasized.;a specific account receivable is decreased for the actual;amount of bad debt at the time of write-off.;Question 2;The net amount expected to be received in cash from;receivables is termed the;cash-good value.;cash realizable value.;gross cash value.;cash-equivalent value.;Question 3;When a note is accepted to settle an open account, Notes;Receivable is debited for the note's;maturity value.;net realizable value.;face value plus interest.;face value.;Question 4;Short-term notes receivables;use the same estimations and computations as accounts;receivable to determine cash realizable value.;present the same valuation problems as long-term notes;receivables.;are reported at their gross realizable value.;have a related allowance account called Allowance for;Doubtful Notes Receivable.;Question 5;Bad Debt Expense is considered;avoidable unless there is a recession.;an internal control weakness.;an avoidable cost in doing business on a credit basis.;a necessary risk of doing business on a credit basis.;Question 6;Schwartzman Co., makes a credit card sale to a customer for;$800. The credit card sale has a grace period of 30 days and then an interest;charge of 1.5% per month is added to the balance. If the unpaid balance on the;above sale is $640 at the end of the grace period, the interest charge is;$16.00.;$9.60.;$11.00.;$6.40.;Question 7;A company has net credit sales of $750,000 for the year and;it estimates that uncollectible accounts will be 2% of sales. If Allowance for;Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its;balance after adjustment will be a credit of;$15,000.;$17,000.;$13,000.;$15,040.;Question 8;A 60-day note receivable dated July 13 has a maturity date;of;September 11;September 12;September 10;September 13;Question 9;Kill Corporation's unadjusted trial balance includes the;following balances (assume normal balances);Accounts Receivable;$ 850,000;Allowance for Doubtful Accounts 15,000;Bad debts are estimated to be 6% of outstanding receivables.;What amount of bad debt expense will the company record?;$15,000;$36,000;$50,100;$51,000;Question 10;Lifetime sells softball equipment. On November 14, they;shipped $3,000 worth of softball uniforms to Palos Middle School, terms 2/10;n/30. On November 21, they received an order from Tinley High School for $1,800;worth of custom printed bats to be produced in December. On November 30, Palos;Middle School returned $300 of defective merchandise. Lifetime has received no;payments from either school as of month end. What amount will be recognized as;net accounts receivable on the balance sheet as of November 30?;$3,000;$4,800;$2,700;$4,500

 

Paper#38464 | Written in 18-Jul-2015

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