Money that an employer has advanced an employee is classified on the employer's books as an: Answer Employee Account Payable Employee Bad Debt Employee Account Receivable Employee Deferred Charge 1 points
The percentage of sales method of estimating uncollectible accounts expense is used to adjust: Answer Allowance for Doubtful Accounts Bad Debt Expense Sales Returns & Allowances Accounts Receivable Aging 1 points Question 3 Receivables not currently collectible are reported: Answer In the Investments section of the Balance Sheet As a Current Liability in the Balance Sheet As Bad Debt Expense in the Income Statement As Bad Debt Expense in the Balance Sheet 1 points.
Question 4 The receivable that is usually evidenced by a formal instrument of credit is a(n): Answer Account Receivable Note Receivable Income Tax Refund Receivable Trade Receivable 1 points.
Question 5 The term "receivables" includes all Answer Merchandise to be collected from companies or individuals Cash to be paid to debtors Cash to be paid to creditors Money claims against other entities 1 points.
Question 6 An account becomes uncollectible when: Answer When the debtor fails to pay an account according to a sales contract When the debtor fails to pay a note on the due date There is no general rule for when an account becomes uncollectible At the end of the fiscal year 1 points.
Question 7 The direct write-off method of accounting for uncollectible accounts: Answer Emphasizes balance sheet relationships Is not generally accepted as a basis for estimating bad debts Emphasizes cash realizable value Emphasizes the matching of expenses with revenues.
Question 8 Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year, and uncollectible accounts expense is estimated at 4% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is Answer $24,500 $23,500 $24,000 None of the above
Question 9 A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is: Answer $10,000 $10,200 $200 $9,800 1 points
Question 10 Receivables are usually listed in order Answer Of liquidity Of due date Of the size Alphabetically.