151.
Refer to the information above. Tutor uses the balance sheet approach in estimating
uncollectible accounts expense, and aging the accounts receivable indicates the estimated
uncollectible portion to be $8,600. What is the amount of uncollectible accounts expense
recognized in Tutor’s income statement for March?
152.
Refer to the information above. Tutor uses the balance sheet approach in estimating
uncollectible accounts expense, and aging the accounts receivable indicates the estimated
uncollectible portion to be $7,400. The net realizable value of Tutor’s accounts receivable
in the March 31 balance sheet is:
153.
Refer to the information above. Tutor uses the income statement approach in estimating
uncollectible accounts expense, and uncollectible accounts expense is estimated to be 3%
of credit sales. What is the amount of uncollectible accounts expense recognized in
Tutor’s income statement for March?
154.
Refer to the information above. Tutor uses the income statement approach in estimating
uncollectible accounts expense, and uncollectible accounts expense is estimated to be 3%
of credit sales. The net realizable value of Tutor’s accounts receivable in the March 31
balance sheet is:
155.
A promissory note:
156.
J. Lennon borrows a sum of money from Y. Ono. A promissory note is used to document
the terms of the transaction. In this situation:
157.
Anthony loaned $2,000 to Cleopatra for one year at 10% interest, all due at maturity. He
insisted the terms of the transaction be formalized in a promissory note. In this situation:
158.
When a promissory note is issued, you would expect to find:
159.
When the maker of a note defaults:
160.
Refer to the information above. The journal entry made by Salem to record this transaction
on November 1, 2014, includes:
161.
Refer to the information above. Salem’s balance sheet at December 31, 2014 includes
which of the following as a result of the sale of land on November 1?
162.
Refer to the information above. On May 1, 2015 (maturity date), the note is collected in full
by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes
which of the following in its income statement for 2015 with regard to this note?
7-90
163.
Refer to the information above. Assuming the maker of the note defaults on May 1, 2015,
Salem will record on this date:
An accounts receivable in the amount of $927,000, as well as interest revenue of
On June 1, 2015, Jensen Company acquired an 8%, ten-month note receivable from a
customer in settlement of an existing account receivable of $130,000. Interest and
principal are due at maturity.
164.
Refer to the information above. The proper adjusting entry at December 31, 2015, with
regard to this note receivable includes a:
165.
Refer to the information above. Jensen’s entry to record the collection of this note at
maturity includes a:
166.
If a 15%, two-month note receivable is acquired from a customer in settlement of an
existing account receivable of $5,000, the accounting entry for acquisition of the note will:
167.
Gold Company received a two-month, 12% note for $8,000 on June 16. Which of the
following statements is true?
168.
On November 1, Willis Corporation sold merchandise in return for a 6%, three-month note
receivable in the amount of $60,000. The proper adjusting entry at December 31 (end of
Willis’s fiscal year) includes a:
169.
If a 5%, four-month note receivable is acquired from a customer in settlement of an
existing account receivable of $50,000, the accounting entry for acquisition of the note
will:
170.
Silver Company received a two-month, 6% note for $16,000 on August 5. Which of the
following statements is true?
171.
The accounts receivable turnover rate:
172.
The accounts receivable turnover rate for Baldwin Corporation is 8, and for Basinger
Company the turnover rate is 10. These statistics indicate that:
173.
In regard to the accounts receivable turnover rate:
174.
Deegan Industries has an accounts receivable turnover rate of 8. Which of the following
statements is
not
true?
175.
Stanley, Inc.’s 2015 income statement reported net sales of $6,000,000, uncollectible
accounts expense of $160,000, and net income of $700,000. Stanley’s average accounts
receivable during 2015 amounted to $1,200,000. Using 360 days to a year, Stanley’s
176.
Assuming a 365 day year, Gore Industries calculated an average of 53 days to collect its
accounts receivable in 2015. During 2015, Gore’s accounts receivable turnover rate:
177.
Dorfmann Industries has an accounts receivable turnover rate of 12. Which of the
following statements is
not
true?