Quiz #5 Solution

Quiz #5 Solution - Quiz#5 Name Lab Section/Time Select the...

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Quiz #5 Name: Lab Section/Time: Select the best answer by clearly circling the answer directly on your quiz. Please circle only one answer or the question will be marked as incorrect. 1.Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account: A. decreases net income. B. increases the allowance for doubtful accounts. C. has no effect on the allowance for doubtful accounts. D. has no effect on net income. 2. True or False? The percentage-of-receivables approach of estimating uncollectible accounts emphasizes matching over valuation of accounts receivable. TRUE FALSE 3. True or False? When the stated rate of interest exceeds the effective or market rate, the present value of the note receivable will be less than its face value. TRUE FALSE 4.On March 1, 2012, Planet, Inc. assigns $3,000,000 of its accounts receivables as collateral for a $2 million loan with a bank. The bank assesses a 3% finance fee on the amount of the note, and it charges periodic interest on the note at 6%. What journal entry would Planet make on
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Quiz #5 Solution - Quiz#5 Name Lab Section/Time Select the...

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