A receivable that is evidenced by a formal instrument and that normally requires the payment of interest is:
an account receivable.
a trade receivable.
a note receivable.
Kersee Company on June 15 sells merchandise on account to Soo Eng Co. for $1,000, terms 2/10, n/30. On June 20 Eng Co.
returns merchandise worth $300 to Kersee Company. On June 24 payment is received from Eng Co. for the balance due. What is
the amount of cash received?
($1,000-$300) x 2%
Accounts and notes receivable are reported in the current assets section of the balance sheet at:
cash (net) realizable value.
net book value.
Net credit sales for the month are $800,000. The accounts receivable balance is $160,000. The allowance is calculated as 7.5% of
the receivables balance using the percentage of receivables basis. If the Allowance for Doubtful Accounts has a credit balance of
$5,000 before adjustment, what is the balance after adjustment?
accounts receivable $160,000 x allowance as 7.5%
In 2010 Patterson Wholesale Company had net credit sales of $750,000. On January 1, 2010, Allowance for Doubtful Accounts
had a credit balance of $18,000. During 2010, $30,000 of uncollectible accounts receivable were written off. Past experience
indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts
receivable balance at December 31 was $200,000, what is the required adjustment to the Allowance for Doubtful Accounts at
December 31, 2010?
An analysis and aging of the accounts receivable of Raja Company at December 31 reveal these data:
Allowance for doubtful accounts per books before adjustment (credit)