Sample Test Questions Ch 8 JR2-1

Sample Test Questions Ch 8 JR2-1 - Days Past Due 0-30 31-60...

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Chapter 8 – (page 1 of 1) 1. Winslow Company loaned Barton Company $30,000 on September 1, 2006. The interest on the note was 8% and both principle and interest are due in 6 months on March 1, 2007. How much interest revenue will Winslow record at December 31, 2006 when it prepares its annual financial statements? a. $600 b. $800 c. $1,200 d. $1,600 Use the following information to answer the next two questions: Angelo Co. had the following aging schedule at December 31, 2006:
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Unformatted text preview: Days Past Due 0-30 31-60 61+ A/R $80,000 $30,000 $20,000 Allowance % 5% 40% 90% 2. If Angelos beginning (Jan. 1, 2006) Allowance for Doubtful Accounts was $29,000, and Angelo wrote off $19,000 during the year, how much does Angelo need to increase its allowance account in 2006? a. $9,000 b. $10,000 c. $24,000 d. $34,000 3. What is the net realizable value of the accounts receivable at December 31? a. $24,000 b. $34,000 c. $96,000 d. $130,000...
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This note was uploaded on 03/29/2010 for the course ACCT 2521 taught by Professor Everett during the Spring '10 term at East Carolina University .

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