To ensure receivables are not overstated on the

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Intermediate Accounting: Reporting and Analysis
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Chapter 6 / Exercise E6-8
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
37.To ensure receivables are not overstated on the balance sheet, they are reported:a.At gross realizable value.b.At their cash (net) realizable value.c.Less estimated uncollectible receivables.d.Both b and c above.
38.Which of the following is false:
39.When an account is written off under the allowance method the:
40.A company has Accounts Receivable of $60,000 for the year and it estimates that uncollectible accounts will be 10% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of:
41.Under the allowance method, the entry to estimate uncollectible accounts is a debit to:a.Bad Debts Expense and a credit to Accounts Receivable.b.Bad Debts Expense and a credit to Allowance for Doubtful Accounts.c.Allowance for Doubtful Accounts and a credit to Bad Debts Expense.d.Allowance for Doubtful Accounts and a credit to Accounts Receivable.
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We have textbook solutions for you!
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Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise E6-8
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
Acct 2001Exam 1: Practice Questions42.The due date on a 90 day promissory note dated June 1:
43.The interest on a $6,000, 8%, 9-month note receivable is
44.The maturity value of a $25,000, 12%, 90-day note receivable dated February 20 (rounded to the nearest whole number) is:
45.Martinez Co. paid Acme Co. for merchandise with a $2,000, 90-day, 8% note dated April 1. If Martinez pays off the note at maturity, what entry should Acme make on its books at that time assuming interest has not been accrued?a.CashNotes Receivable2,1602,160b.Notes PayableInterest ExpenseCash2,0001602,160c.CashNotes ReceivableInterest Revenue2,0402,00040d.CashNotes ReceivableInterest Revenue2,1602,000160
46.Which accounts would be debited and credited in the entry to record accrued interest on a note receivable?
47.Bengal Retailers accepted $2,000 of Visa credit card charges for merchandise sold on November1. Visa charges a 2% fee for its credit card use. The entry to record this transaction by Bengal Retailers will include a credit to Sales revenue of $2,000 and a debit(s) to:
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