Chapter 8
Receivables
OBJECTIVES
Objj 1
Ob
Desc
Descri
ribe
be the
the com
commo
mon
n clas
classi
sifi
ficat
catio
ions
ns of
of recei
receivab
vable
les.
s.
Obj 23
Obj
Obj 4
Obj 5
Descri
Describe
cribe
be the
the
the direc
natur
narect
ture
of te-of
and
andoff
the
tfhemethod
accoun
achod
countin
ting
unco
uncolle
llecti
ctible
ble
rece
receiva
ivable
bles.
s.e receiva
Descri
Des
be
di
tewritewri
met
of
the
tgheofaccount
acco
unting
ing
for
for unc
uncoll
ollect
ectibl
ible
receivable
bles.
s.
Descri
Describe
be the
the allow
allowance
ance method
method of
of accou
accounti
nting
ng for
for uncol
uncollec
lectib
tible
le rece
receiva
ivable
bles.
s.
Comar
Comaree the direc
directt wri
writete-off
off and allow
allowance
ance meth
methods
ods o
off account
accounting
ing for
for un
uncol
collect
lectibl
iblee
accounts.
Descri
Describe
be the
the natur
nature"
e" chara
characte
cteris
ristic
tics"
s" and
and accou
accounti
nting
ng o
off notes
notes receiv
receivabl
able.
e.
Desc
Descri
ribe
be the
the reo
reort
rtin
ing
g of rece
receiv
ivab
able
less on the
the bala
balance
nce she
sheet
et..
Obj !
Objj #
Ob
QUESTION GRID
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Chapter 8/Receivables

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Chapter 8/Receivables
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Chapter 83Receivables
TRUE/45SE
1. ,otes receivabl
receivablee and accoun
accounts
ts receivab
receivables
les can also be
be called
called trade
trade receivab
receivables.
les.
4NS6 
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2. eceivables
eceiv
com
owners
ow
an
off
hould
d be disclos
disclosed
ed searatel'
searatel' on
on the balance
balance sheet.
sheet.
 ablesDfrom
/0 coman'
&asan'
' O
ners
0 and
$%d-$officers
1 icers sshoul
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3.
eceivables
eceivables not
not currentl'
currentl' collect
collectible
ible are
are reorted
reorted in the
the investmen
investments
ts section
section of the balance
balance
sheet.
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4. r
rade
ade receivabl
receivables
es occur
occur when
when two
two comanies
comanies trade or e6change
e6change notes receivables
receivables..
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5. Other receivables
receivables include
include non trade
trade receivab
receivables
les such
such as loans to coman'
coman' office
officers.
rs.
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!.
oth accounts
accounts receivable
receivable and
and notes receivable
receivable rerese
reresent
nt claims
claims that are
are e6ected
e6ected to
to be
collected in cash.
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#. 7hen comanies
comanies sell
sell their
their receivab
receivables
les to other
other comanie
comanies"
s" the transac
transaction
tion is
is called
called factoring
factoring
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404

Chater %+eceivables
%.
Of the
the two methods
methods of accountin
accounting
g for uncollectibl
uncollectiblee receivables
receivables"" the allowance
allowance method
method
rovides in advance for uncollectible receivables.
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8.
9enerall'
9enerall' acceted
acceted accountin
accounting
g rinciles
rinciles do not normall'
normall' allow the
the use direct
direct write-o
write-off
ff
method of accounting for uncollectible accounts.
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1$. he direct write-off
write-off method
method records
records uncollectible
uncollectible accounts
accounts e6ense in the 'ear the secific
account receivable is determined to be uncollectible.
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11. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts is debited
debited under the direct
direct writ
write-of
e-offf method when an
account is determined to be uncollectible.
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12. :nder the direct
direct write-off
write-off method"
method" no attemt
attemt is made to match ad Debt &6ense
&6ense to sales
revenues in the same accounting eriod.
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13. he difference
difference between
between )ccount
)ccountss eceivable
eceivable and its contra asset
asset account is called
called net
reali;able value.
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14. he estimate
estimate based on sales
sales method
method violates
violates the matching
matching rincile.
rincile.
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15. 7hen the estimate
estimate based
based on anal'sis
anal'sis of receivables
receivables is
is used" income
income is reduced when
when a
secific receivable is written off.
4NS6 /
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1!. 7hen an account receivabl
receivablee that has been written
written off is subse<uentl'
subse<uentl' collected
collected"" the account
receivable is reinstated.
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Chapter 8/Receivables

4$5
1#. )lthough
)lthough )llowanc
)llowancee for Doubtful
Doubtful )ccounts
)ccounts normall'
normall' has a credit balance"
balance" it ma' have
either a debit or a credit balance
balan ce before adjusting entries are recorded at the end of the
accounting eriod.
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1%. )t the end of a eriod" before the accounts
accounts are adjusted"
adjusted" )llowa
)llowance
nce for Doubtful
Doubtful )ccounts
)ccounts
has a credit balance of =25$" and net sales on account for the eriod total =5$$"$$$. f
uncollectible accounts e6ense is estimated at 1> of net sales on account" the current
rovision to be made for uncollectible accounts e6ense is =4"#5$.
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18. )t the end of a eriod" before the accounts
accounts are adjusted"
adjusted" )llowa
)llowance
nce for Doubtful
Doubtful )ccounts
)ccounts
has a debit balance of =5$$" and net sales on account for the eriod total =%$$"$$$. f
uncollectible accounts e6ense is estimated at 1> of net sales on account" the current
rovision to be made for uncollectible accounts e6ense is =%"5$$.
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2$. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts is a liabilit
liabilit'
' account.
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21. )t the end of a eriod" before the accounts
accounts are adjusted"
adjusted" )llowa
)llowance
nce for Doubtful
Doubtful )ccounts
)ccounts
has a debit balance of =2"$$$. f the estimate of uncollectible accounts determined b' aging
the receivables is =3$"$$$" the current rovision to be made for uncollectible acco
accounts
unts
e6ense is =3$"$$$.
4NS6 /
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22. )t
end ofbalance
a eriod"
before the
accounts
acco
unts areof
adjusted"
adjus
ted" )llowa
)llowance
nce for Doubtful
Doubtf
ul )ccounts
)ccounts
hasthe
a credit
of =5"$$$.
f the
estimate
uncollectible
accounts
determined
b' aging
the receivables is =5$"$$$" the current rovision to be made for uncollectible acco
accounts
unts
e6ense is =45"$$$.
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23. 7hen using the estimate-ba
estimate-based-on
sed-on-sal
-sales
es method" the entr' to record uncollectibl
uncollectiblee accounts
e6ense includes a credit to the )ccounts eceivable account.
4NS6 /
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406

Chater %+eceivables
24. 7hen using
using the estimate
estimate based on anal'sis
anal'sis of receivab
receivables"
les" the amount
amount comuted
comuted in the
anal'sis is alwa's the re<uired amount that would be recorded in the adjusting entr'.
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25. he allowance
allowance for doubtful
doubtful accounts
accounts is similar
similar to accumulated
accumulated dereciation
dereciation in that the
account reresents the total of all accounts written-off since the beginning 'ear.
'e ar.
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2!. he e<uation for comuting interest on an interest-bearing
interest-bearing note is as follows0 interest e<uals
maturit' value times interest rate times time.
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2#. he due date
date of a !$-da'
!$-da' note
note dated
dated ul' 1$
1$ is etembe
etemberr 1$.
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2%. he maturit'
maturit' value
value of a 12>" !$-da'
!$-da' note
note for =5"$$$
=5"$$$ is =5"!$$.
=5"!$$.
D/0 &as' O0 $%-$!
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
28. he maturit'
maturit' value
value of a note receivable
receivable is alwa'
alwa'ss the same as its face
face value.
4NS6 /
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3$. he interest
interest on a !>" !$-da'
!$-da' note
note for =5"$$$ is
is =3$$.
D/0 &as' O0 $%-$!
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
31.
he/ art'
art' romising
romi
n0 ote$%at-$maturit'
mat
is the a'ee.
a'ee.
D/0 sing
&asto
' a'
Oanote
! urit' is
4NS6
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
32. f the ma?er
ma?er of a note fails to
to a' the debt on the due date"
date" the note is sai
said
d to be dishonored.
dishonored.
4NS6 
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
33. 7hen a note is received
received from a customer on account"
account" it is recorded
recorded b' debiting )ccount
)ccountss
eceivable and crediting ,otes eceivable.
D/0 &as' O0 $%-$!
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

4$#
34. n comuting
comuting the maturit'
maturit' date
date of a note" the date the note
note is issued
issued is included
included but the due
date is omitted.
D/0 &as' O0 $%-$!
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
35. 7hen a note is written
written to
to settle an oen account
account no entr' iiss necessar'
necessar'..
4NS6 /
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3!. f a romiss
romissor'
or' note
note is dishonor
dishonored"
ed" the a'ee
a'ee should
should 7!t record interest income.
D/0 &as' O0 $%-$!
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3#. he receivables
receivables turnover
turnover ratio
ratio is comuted b' dividing
dividing total gross
gross sales b' the average net
receivables during the 'ear.
4NS6 /
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3%. he balance
balance of the allowance
allowance for doubtful
doubtful accounts
accounts is added to accounts
accounts receivabl
receivablee on the
balance sheet.
D/0 &as' O0 $%-$#
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
38. he accounts
accounts receivable
receivable turnover measures
measures the length
length of time in da's it ta?es
ta?es to collect a
receivable.
D/0 &as' O0 $%-$#
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
4$. ) !$-da'
!$-da'"" 12> note receivable
receivable for =2$"$$$"
=2$"$$$" dated (a' 2$" is discounted
discounted at the ban? on une
8 at 15>. he number of da's in the discount eriod is 2$.
4NS6 /
D/0 (oderate
O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
41. ) !$-da'
!$-da'"" 12> note receivable
receivable for =2$"$$$"
=2$"$$$" dated (a' 2$" is discounted
discounted at the ban? on une
8 at 15>. he roceeds are =2$"34$.
D/0 (oderate
O0 $%-)
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
42. f the roceeds
roceeds from discount
discounting
ing a note receivable
receivable are less
less than the face value
value of the note"
nterest &6ense will be debited for the e6cess
e6ce ss of the roceeds over the face value.
D/0 (oderate
O0 $%-)
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
408

Chater %+eceivables
43. he discounting
discounting of a note receivable
receivable creates
creates a contingent liabili
liabilit'
t' that continues
continues in effect
effect
until the due date of the note.
D/0 &as' O0 $%-)
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
44. ) note
note receivable
receivable can be sold to a financial
financial institut
institution
ion to secure cash before
before the matur
maturit'
it'
date. his t'e of transaction is called discounting the note receivable.
D/0 &as' O0 $%-)
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
45. he amount of cash
cash recei
received
ved for a discounted
discounted noted
noted is called maturit'
maturit' value.
value.
D/0 &as' O0 $%-)
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
4!. he roceeds
roceeds received
received from discounti
discounting
ng a note receivable
receivable at a ban? are e<ual to
to the face
value of the note less the discount charged b' the ban?.
D/0 &as' O0 $%-)
4NS6 /
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
U5TI15E COICE
1.
) note receivab
receivable
le due in 1% months is liste
listed
d on the
the balance
balance sheet
sheet under
under the cation
cation
a. long-t
long-term
erm liabil
liabiliti
ities
es
b. fi6ed assets
c. curr
current
ent as
asse
sets
ts
d. in
inve
vest
stme
ment
ntss
D/0 &as' O0 $%-$1
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2.
he receivabl
receivablee that is usuall'
usuall' evidenced
evidenced b' a formal
formal instrume
instrument
nt of credi
creditt is a@nA
a. tr
trade
ade rece
receiv
ivab
able
le..
b.
c.
d.
4NS6
,)00
,)
3.
note
receivable.
account
accounts
s receiva
receivable
ble..
income
income ta6
ta6 recei
receivabl
vable.
e.

D/0 &as' O0 $%-$1
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
7hich
7hich of the follow
following
ing receiva
receivables
bles would
would 7!t be classified as an Bother receivable
a. )dvance
)dvance to an eml
emlo'e
o'eee
b. nterest receivable
c. efund
efundabl
ablee iincom
ncomee tta6
a6
d. ,ote
,otess receiv
receivabl
ablee
D/0 &as' O0 $%-$1
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

4$8
4.
,otes or accounts
accounts receivab
receivables
les that
that result
result from sales transactio
transactions
ns are often called
a. non-tra
non-trade
de rece
receiva
ivable
bles.
s.
b. trade receivables.
c. mercha
merchandi
ndise
se receiv
receivabl
ables.
es.
d. sales
sales receiv
receivabl
ables.
es.
D/0 &as' O0 $%-$1
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
5.
he
he term
term Bre
Brece
ceiv
ivab
able
lesB
sB in
incl
clud
udes
es all
all
a. mone' claims
claims against
against other entities.
entities.
b. merchandise to be collected from individuals or comanies.
c. cash
cash to be aid
aid to cred
credito
itors.
rs.
d. cash
cash to be aid
aid to debt
debtors
ors..
4NS6 )
D/0 &as' O0 $%-$1
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!.
7hen
7hen does
does an account
account become
become uncoll
uncollect
ectibl
ible
e
a. when the debtor
debtor fails
fails to a' an
an account accordi
according
ng to a sales contract
contract
b. when the debtor fails to a' a note on the due date
c. there is no general
general rule
rule for when an account
account becomes unc
uncollect
ollectible
ible
d. at the
the end of the
the fiscal
fiscal 'ear
e. uon receit
receit of a certifi
certified
ed letter
letter from the
the debtor
debtor
4NS6 C
D/0 &as' O0 $%-$2
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#.
he t'e
t'e of account
account and normal
normal balance
balance of
of )llow
)llowance
ance for
for Doubtful
Doubtful )ccounts
)ccounts is
a. contra
contra asset"
asset" credit
credit
b. asset" debit
c. lia
liabil
bilit'
it'"" credit
credit
d. e6en
e6ense
se"" debi
debitt
e. e6en
e6ense
se"" ccre
redi
ditt
4NS6 )
/0 tic
&as ')C*)
O
0 $%-$2
,)00 ))CD)nal'tic
,)
)nal'
)C*
)/,-(easurement
%.
he two
two methods
methods of accounting
accounting for
for uncollecti
uncollectible
ble receivabl
receivables
es are the allowanc
allowancee method
method and
the
a. e<uit
e<uit'
' meth
method
od
b. direct write-off method
method
c. in
inte
tere
rest
st met
metho
hod
d
d. co
cost
st met
metho
hod
d
4NS6 
D/0 &as' O0 $%-$2
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
410

Chater %+eceivables
8.
he direct
direct write-off
write-off method of account
accounting
ing for
for uncoll
uncollectibl
ectiblee accounts
accounts
a. emhasi;es
emhasi;es balance
balance sheet
sheet relati
relationshi
onshis.
s.
b. is not generall' acceted as a basis for estimating bad debts.
c. emhasi;es
emhasi;es cash reali;able
reali;able value.
d. emhasi;es
emhasi;es the
the matching
matching of e6enses
e6enses with
with revenues.
revenues.
D/0 &as' O0 $%-$2
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
1$. :nder the direct
direct write-off
write-off method
method of accounting
accounting for uncollectibl
uncollectiblee accounts"
accounts" ad Debts
&6ense is debited
a. at the
the end of each
each accountin
accounting
g eriod.
eriod.
b. when a credit sale is ast due.
c. whenever
whenever a re-determine
re-determined
d amount of credit
credit sales
sales have been made.
d. when an account
account is determine
determined
d to be worthless
worthless..
D/0 &as' O0 $%-$2
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
11. )n alternat
alternative
ive name
name for ad Debts
Debts &6ense
&6ense is
is
a. Collec
Collectio
tion
n &6ense
&6ense..
b. Credit Eoss &6ense.
c. :ncollectibl
:ncollectiblee )ccounts
)ccounts &6ense.
&6ense.
d. Deadbea
Deadbeatt &6ens
&6ense.
e.
4NS6 C
D/0 &as' O0 $%-$2
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
12. wo
wo methods of accounti
accounting
ng for uncollectibl
uncollectiblee accounts are
are the
a. direct write-off
write-off method and
and the allowance
allowance method.
method.
b. allowance method and the accrual method.
c. allowance
allowance method
method and the
the net reali;a
reali;able
ble method.
method.
d. direct write-off
write-off method and
and the accrual
accrual method.
method.
D/0 &as' O0 $%-$2
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
13. f the direct write-of
write-offf method of accounting
accounting for uncollect
uncollectible
ible receivables
receivables is used" what
general ledger account is debited to write off a customerFs account as uncollectible
a. :ncollectibl
:ncollectiblee )ccounts
)ccounts *a'able
*a'able
b. )ccounts eceivable
c. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts
d. ad
ad Debt
Debt &6
&6en
ense
se
D/0 &as' O0 $%-$3
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

411
14. f the direct write-of
write-offf method of accounting
accounting for uncollect
uncollectible
ible receivables
receivables is used" what
general ledger account is credited to write off a customerFs account as uncollectible
a. :ncollectibl
:ncollectiblee )ccounts
)ccounts &6ense
&6ense
b. )ccounts eceivable
c. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts
d. ntere
nterest
st &6ense
&6ense
4NS6 
D/0 &as' O0 $%-$3
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
15. One of the wea?nesses
wea?nesses of the
the direct write-o
write-off
ff method
method is that it
a. understates
understates accounts
accounts receiva
receivable
ble on the balance
balance sheet
sheet
b. violates the matching rincile
c. is too diff
difficult
icult to use for man'
man' comanies
comanies
d. is base
based
d on esti
estimat
mates
es
D/0 &as' O0 $%-$3
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
1!. he E(, Co. uses the direct
direct write-off
write-off method
method of accounting
accounting for uncollectibl
uncollectiblee accounts
receivable. he entr' to write off an account that has been determined to be uncollectible
would be as follows0
a. debit )llowa
)llowance
nce for Doubtful )ccounts
)ccountsGG credit )ccounts
)ccounts eceivable
eceivable
b. debit ales eturns and )llowance"
)llowance" credit )ccounts eceivable
c. debit :ncollectible )ccounts &6enseG credit )llowance for
for Doubtful )ccounts
d. debit )ccounts
)ccounts eceivable"
eceivable" credit
credit :ncollectible
:ncollectible )ccounts
)ccounts &6ense
e. debit :ncollectib
:ncollectible
le )ccounts
)ccounts &6enseG
&6enseG credit )ccounts
)ccounts eceivable
eceivable
4NS6 &
D/0 (oderate
O0 $%-$3
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
1#. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a credit
credit balance of =5$$ at the end of the 'ear @befor
@beforee
adjustmentA" and uncollectible accounts e6ense is estimated at 3> of net sales. f net sales
are =!$$"$$$" the amount of the adjusting entr' to record the rovision for doubtful accounts
is
a.
b.
c.
d.
4NS6
,)00
,)
=1%"
1%"5$$
=1#"5$$
=1%"
1%"$$$
none
none of th
thee above
above
C
D/0 (oderate
O0 $%-$4
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
412

Chater %+eceivables
1%. :nder the allowanc
allowancee method" writing
writing off an uncollectibl
uncollectiblee account
a. affects
affects onl'
onl' income
income statem
statement
ent accounts.
accounts.
b. is not accetable ractice.
c. affects
affects onl' balance sheet accounts.
accounts.
d. affects
affects both balance
balance sheet and
and income statemen
statementt accounts.
accounts.
D/0 &as' O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
18. )n estimate
estimate based on an anal'sis
anal'sis of receivables
receivables shows that =#%$
=#%$ of accounts receivable
receivabless are
uncollectible. he )llowance for Doubtful )ccounts has a debit balance
b alance of =11$. )fter
rearing the adjusting entr' at the end of the 'ear" the balance in the )llowance
)llowance for
Doubtful )ccounts is
a. =11$
b. =#%$
c. =!#$
d. =%8$
4NS6 D
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2$. f the allowance
allowance method of accounting
accounting for uncollecti
uncollectible
ble receivables
receivables is used"
used" what general
ledger account is debited to write off a customerFs account as uncollectible
a. :ncollectibl
:ncollectiblee )ccounts
)ccounts &6ense
&6ense
b. )llowance for Doubtful )ccounts
)ccounts
c. )ccount
)ccountss eceiva
eceivable
ble
d. ntere
nterest
st &6ense
&6ense
4NS6 
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
21. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a credit
credit balance of =%$$ at the end of the 'ear @befor
@beforee
adjustmentA" and an anal'sis of accounts in the customers ledger indicates doubtful accounts
of =15"$$$. 7hich of the following entries records the roer rovision for doubtful
accounts
a. debit :ncollectible )ccounts &6ense" =%$$G credit )llowance for Doubtful )ccounts"
=%$$
b. debit :ncollectible )ccounts
)ccounts &6ense" =14"2$$G credit )llowance for Doubtful )ccounts"
=14"2$$
c. debit )llowance
)llowance for Doubtful )ccounts" =%$$G credit :ncollectible )ccounts &6ense"
=%$$
d. debit )llowance
)llowance for Doubtful )ccounts" =15"%$$G credit
credit :ncollectible )ccounts &6ense"
=15"%$$
D/0 (oderate
O0 $%-$4
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

413
22. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a debit
debit balance of =5$$
=5$$ at the end of the 'ear @before
@before
adjustmentA" and uncollectible accounts e6ense is estimated at 3> of net sales. f net sales
are =!$$"$$$" the amount of the adjusting entr' to record the rovision for doubtful accounts
is
a. =1%"
1%"5$$
b. =1#"5$$
c. =1%"
1%"$$$
d. none
none of th
thee above
above
D/0 (oderate
O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
23. )fter the accounts
accounts are adjusted
adjusted and closed at the end of the fisca
fiscall 'ear" )ccounts
)ccounts eceivable
eceivable
has a balance of =45$"$$$
= 45$"$$$ and )llowance for Doubtful )ccounts has a balance of =25"$$$.
7hat is the net reali;able value of the accounts receivable
a. =25"
25"$$$
b. =425"$$$
c. =4
=45$
5$"$
"$$$
$$
d. =4
=455
55"$
"$$$
$$
D/0 &as' O0 $%-$4
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
24. f the allowance
allowance method of accounting
accounting for uncollecti
uncollectible
ble receivables
receivables is used"
used" what general
ledger account is credited to write off a customerFs account as uncollectible
a. :ncollectibl
:ncollectiblee )ccounts
)ccounts &6ense
&6ense
b. )ccounts eceivable
c. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts
d. ntere
nterest
st &6ense
&6ense
D/0 &as' O0 $%-$4
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
25. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts is listed
listed on the balance sheet
sheet under the cation
cation
a.
b.
c.
d.
4NS6
,)00
,)
stoc?ho
sto
c?holde
ldersH
rsH e<uit'
e<uit'
investments
fi
fi6e
6ed
d asse
assets
ts
curr
current
ent ass
asset
etss
D
D/0 &as' O0 $%-$4
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
414

Chater %+eceivables
2!. On the balance sheet"
sheet" the amount shown
shown for the )llowanc
)llowancee for Doubtful )ccounts
)ccounts is e<ual to
the
a. :ncollectibl
:ncollectiblee accounts
accounts e6ense
e6ense for
for the 'ear
b. total of the accounts receivables written-off dur
during
ing the 'ear
c. total estima
estimated
ted uncollectib
uncollectible
le accounts
accounts as of the end of the 'ear
d. sum of all accounts
accounts that are
are ast
ast due.
4NS6 C
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2#. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a credit
credit balance
balance of =1"1$$ at the end of the 'ear
'ear
@before adjustmentA" and an anal'sis of customersF accounts indicates doubtful
doub tful accounts of
=12"8$$. 7hich of the following entries records the roer rovision for doubtful accounts
a. debit :ncollectible )ccounts &6ense" =14"$$$G credit )llowance for Doubtful )ccounts"
=14"$$$
b. debit )llowance
)llowance for Doubtful )ccounts"
)ccounts" =14"$$$G credit :ncollectible )ccounts &6ense"
=14"$$$
c. debit )llowance
)llowance for Doubtful )ccounts" =11"%$$G
=11"%$$G credit :ncollectible
:ncollectible )ccounts
)ccounts &6ense"
=11"%$$
d. debit :ncollectible )ccounts &6ense" =11"%$$G credit )llowance for Doubtful )ccounts"
)ccounts"
=11"%$$
4NS6 D
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2%. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a credit
credit balance
balance of =1"5$$ at the end of the 'ear
'ear
@before adjustmentA" and an anal'sis of customersF accounts indicates doubtful
doub tful accounts of
=1#"8$$. 7hich of the following entries records the roer rovision for doubtful accounts
a. debit )llowance
)llowance for Doubtful )ccounts" =1!"4$$G credit :ncollectible )ccounts &6ense"
=1!"4$$
b. debit )llowance
)llowance for Doubtful )ccounts"
)ccounts" =18"4$$G credit :ncollectible )ccounts &6ense"
=18"4$$
c. debit :ncollectible )ccounts &6ense" =18"4$$G credit )llowance for Doubtful )ccounts"
=18"4$$
d. debit :ncollectible )ccounts &6ense" =1!"4$$G credit )llowance for Doubtful )ccounts"
=1!"4$$
D/0 (oderate
O0 $%-$4
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
28. 7hat is the t'e of account
account and normal balan
balance
ce of )llowance
)llowance for Doubtful
Doubtful )
)ccounts
ccounts
a. Contra
Contra asset"
asset" cre
credit
dit
b. )sset" debit
c. )sse
)sset"
t" cr
credi
editt
d. Contra
Contra asset"
asset" deb
debit
it
4NS6 )
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

415
3$. ) coman'
coman' uses the estimate
estimate of sales
sales method to account for uncollect
uncollectible
ible accounts.
accounts. 7hen
7hen
the firm writes off a secific customerFs account receivable
a. total current
current asset
assetss are
are reduced
reduced
b. total e6enses for the eriod are increased
c. total current
current assets
assets are reduced
reduced and total
total e6enses are
are increased
increased
d. there is no effect
effect on total
total current
current assets
assets or total e6enses
e6enses
4NS6 D
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
31. )n estimate
estimate based on an anal'sis
anal'sis of receivables
receivables shows that =#%$
=#%$ of accounts receivable
receivabless are
uncollectible. he )llowance for Doubtful )ccounts has a debit balance
b alance of =11$. )fter
rearing the adjusting entr' at the end of the 'ear" the balance in the :ncollectible
)ccounts &6ense is
a. =11$
b. =#%$
c. =!#$
d. =%8$
D/0 (oderate
O0 $%-$4
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
32. )C coman' uses
uses the estimate
estimate of sales method
method of accounting
accounting for uncollectibl
uncollectiblee accounts.
)C estimates that 3> of all credit sales will be uncollectible. On anuar' 1" 2$$5" the
)llowance for Doubtful )ccounts had a credit balance of =2"4$$. During 2$$5" )C wroteoff accounts receivable totaling =1"%$$ and made credit sales of =1$$"$$$. )fter the
adjusting entr'" the December 31" 2$$5" balance in the :ncollectible )ccounts &6ense
would be
a. =1"2$$
b. =3"$$$
c. =3"!$$
d. =#"2
#"2$$
D/0 (oderate
O0 $%-$4
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
33. he balance in )llowanc
)llowancee for Doubtful )ccount
)ccountss must be carefull' considered
considered rior to the
end of the 'ear adjustment when al'ing which method
a. direct
direct writ
write-o
e-off
ff meth
method
od
b. estimate based on sales
c. estimate
estimate based
based on an anal's
anal'sis
is of receivab
receivables
les
d. both
both @bA
@bA and
and @cA
@cA
D/0 &as' O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
416

Chater %+eceivables
34. Donovan Coman'
Coman' uses the
the estimate
estimate based on anal'sis
anal'sis of receivables
receivables to
to account for
uncollectible accounts. he coman' has determined that the rish Coman' account is
uncollectible. o write-off
write-off this account" Donovan should debit
a. :ncollectibl
:ncollectiblee )ccounts
)ccounts &6ense
&6ense and credit )ccount
)ccountss eceivable
b. :ncollectible )ccounts
)ccounts &6ense and credit )llowance for Doubtful )ccounts
c. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts and credit )ccounts
)ccounts eceivabl
eceivablee
d. )ccounts
)ccounts receivable
receivable and credit
credit )llowance
)llowance for Doubtful
Doubtful )cc
)ccounts
ounts
D/0 &as' O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
35. :sing the estimat
estimatee based on sales method
method of accounting for uncollect
uncollectible
ible accounts"
accounts" the entr'
to reinstate a secific receivable reviousl' written off would include a
a. credit
credit to ad
ad Debt
Debt &6ens
&6ensee
b. credit to )ccounts eceivable
c. debit to
to )llowanc
)llowancee for Doubtful
Doubtful )ccount
)ccountss
d. debit to )ccounts
)ccounts eceivable
eceivable
4NS6 D
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3!. )t the beginning of the 'ear" the balance in the
the )llowance
)llowance for Doubtful )ccounts is a credit
of =54$. During the 'ear" =35$ of reviousl'
 reviousl' written-off accounts were reinstated and
accounts totaling =41$ are written-off as uncollectible. he end of the 'ear balance in the
)llowance for Doubtful )ccounts should be
a. =35$
b. =41$
c. =4%$
d. =!$$
D/0 (oderate
O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3#. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a debit
debit balance of =%$$
=%$$ at the end of the 'ear @before
@before
adjustmentA" and an anal'sis of accounts in the customers ledger indicates doubtful accounts
of =15"$$$. 7hich of the following entries records the roer rovision for doubtful
accounts
a. debit :ncollectible )ccounts &6ense" =%$$G credit )llowance for Doubtful )ccounts"
=%$$
b. debit :ncollectible )ccounts
)ccounts &6ense" =14"2$$G credit )llowance for Doubtful )ccounts"
=14"2$$
c. debit )llowance
)llowance for Doubtful )ccounts" =%$$G credit :ncollectible )ccounts &6ense"
=%$$
d. debit :ncollectible )ccounts &6ense" =15"%$$G credit )llowance for Doubtful )ccounts"
=15"%$$
4NS6 D
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

41#
3%. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a debit
debit balance of =1"1$$
=1"1$$ at the end of the 'ear
@before adjustmentA" and an anal'sis of customersF accounts indicates doubtful
doub tful accounts of
=12"8$$. 7hich of the following entries records the roer rovision for doubtful accounts
a. debit :ncollectible )ccounts &6ense" =14"$$$G credit )llowance for Doubtful )ccounts"
=14"$$$
b. debit )llowance
)llowance for Doubtful )ccounts"
)ccounts" =14"$$$G credit :ncollectible )ccounts &6ense"
=14"$$$
c. debit )llowance
)llowance for Doubtful )ccounts" =11"%$$G
=11"%$$G credit :ncollectible
:ncollectible )ccounts
)ccounts &6ense"
=11"%$$
d. debit :ncollectible )ccounts &6ense" =11"%$$G credit )llowance for Doubtful )ccounts"
)ccounts"
=11"%$$
D/0 (oderate
O0 $%-$4
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
38. )llowance
)llowance for Doubtful
Doubtful )ccounts
)ccounts has a credit
credit balance
balance of =1"5$$ at the end of the 'ear
'ear
@before adjustmentA" and an anal'sis of customersF accounts indicates doubtful
doub tful accounts of
=1#"8$$. 7hich of the following entries records the roer rovision for doubtful accounts
a. debit )llowance
)llowance for Doubtful )ccounts" =1!"4$$G credit :ncollectible )ccounts &6ense"
=1!"4$$
b. debit )llowance
)llowance for Doubtful )ccounts"
)ccounts" =18"4$$G credit :ncollectible )ccounts &6ense"
=18"4$$
c. debit :ncollectible )ccounts &6ense" =18"4$$G credit )llowance for Doubtful )ccounts"
=18"4$$
d. debit :ncollectible )ccounts &6ense" =1!"4$$G credit )llowance for Doubtful )ccounts"
=1!"4$$
D/0 (oderate
O0 $%-$4
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
4$. 7hen the allowance
allowance method
method is used to account
account for uncollect
uncollectible
ible acco
accounts"
unts" ad Debts
Debts
&6ense is debited when
a. a customer
customerFs
Fs account
account becomes
becomes ast
ast due.
due.
b.
c.
d.
4NS6
,)00
,)
an account becomes bad and is written off.
a sal
salee is
is mad
made.
e.
management
management estimates
estimates the amount
amount of uncollecti
uncollectibles.
bles.
D
D/0 &as' O0 $%-$4
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
41. he collection
collection of an account that had been reviousl'
reviousl' written
written off under
under the allowance
allowance
method of accounting for uncollectibles
a. will increas
increasee income in
in the eriod
eriod it is collect
collected.
ed.
b. will decrease income in the eriod it is collected.
c. does not affect
affect income
income in the
the eriod it
it is collected
collected..
d. re<uires a correcting
correcting entr' for the eriod in which the account was written off.
off.
D/0 &as' O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
418

Chater %+eceivables
42. )n aging of a coman'Fs
coman'Fs accounts
accounts receivable
receivable indicates
indicates that
that =4"$$$ are estimat
estimated
ed to be
uncollectible. f )llowance for Doubtful )ccounts has a =1"2$$ credit balance" the
adjustment to record bad debts for the eriod will re<uire a
a. debit to )llowance
)llowance for Doubtf
Doubtful
ul )ccounts
)ccounts for
for =2"%$$.
b. debit to ad Debts &6ense for =2"%$$.
c. debit to )llowance
)llowance for Doubtf
Doubtful
ul )ccounts
)ccounts for
for =4"$$$.
d. credit to )llow
)llowance
ance for Doubtful
Doubtful for =4"$$$.
=4"$$$.
D/0 (oderate
O0 $%-$4
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
43. )n aging of a coman'Fs
coman'Fs accounts
accounts receivable
receivable indicates
indicates that
that =3"$$$ are estimat
estimated
ed to be
uncollectible. f )llowance for Doubtful )ccounts has a =1"2$$ debit balance" the
adjustment to record bad debts for the eriod will re<uire a
a. debit to ad
ad Debt &6ense
&6ense for =4"2$$.
b. debit to ad Debts &6ense for =3"$$$.
c. debit to ad
ad Debts
Debts &6ense
&6ense for =1"%$$.
d. credit to )llow
)llowance
ance for Doubtful
Doubtful )ccounts
)ccounts for =4"$$$.
=4"$$$.
D/0 (oderate
O0 $%-$4
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
44. )n aging of a coman'Fs
coman'Fs accounts
accounts receivable
receivable indicates
indicates that
that =3"$$$ are estimat
estimated
ed to be
uncollectible. f )llowance for Doubtful )ccounts has a =1"2$$ credit balance" the
adjustment to record bad debts for the eriod will re<uire a
a. debit to ad
ad Debt &6ense
&6ense for =4"2$$.
b. debit to ad Debts &6ense for =3"$$$.
c. debit to ad
ad Debts
Debts &6ense
&6ense for =1"%$$.
d. credit to )llow
)llowance
ance for Doubtful
Doubtful )ccounts
)ccounts for =4"$$$.
=4"$$$.
D/0 (oderate
O0 $%-$4
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
45. ) debit
debit balance
balance in the )llowa
)llowance
nce for Doubtful
Doubtful )ccount
)ccountss
a.
b.
c.
d.
4NS6
,)00
,)
is the
the normal
normal balance
balance for
for that
that account.
account.
indicates that actual bad debt write-offs have been less than what was estimated.
estimated.
cannot occur if the
the ercentage
ercentage of receivables
receivables method of estimati
estimating
ng bad debts is used.
indicates that actual bad debt write-offs have e6ceeded revious rovisions for bad debts.
D
D/0 (oderate
O0 $%-$4
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

418
4!. o record estimated uncollectible accounts using the allowance method" the adjusting entr'
would be a
a. debit to ad Debts &6ense
&6ense and a credit to )llowa
)llowance
nce for Doubtful
Doubtful )ccounts
)ccounts..
b. debit to )ccounts eceivable and a credit to )llowance for Doubtful )ccounts.
c. debit to )llowanc
)llowancee for Doubtful )ccount
)ccountss and a credit to )ccount
)ccountss eceivable.
eceivable.
d. debit to Eoss
Eoss on Credit ales
ales and a credit to )ccounts
)ccounts eceivabl
eceivable.
e.
4NS6 )
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
4#. he balance in )llowan
)llowance
ce for Doubtful
Doubtful )ccounts
)ccounts must
must be considered
considered rior to end of eriod
adjustment when using which of the following methods
a. )nal'sis
)nal'sis of receivables
receivables allowance
allowance method
method
b. Direct write-off method
method
c. )ccr
)ccrual
ual meth
method
od
d. ,et real
reali;a
i;able
ble meth
method
od
D/0 &as' O0 $%-$4
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
4%. Iou
Iou have just received
received notice that a customer of 'ours
'ours with an )ccount eceivable balance
of =1$$ has gone ban?rut and will 7!t ma?e an' future a'ments. )ssuming 'ou use the
allowance method" the entr' 'ou ma?e is to
a. debit ad Debt &6ense
&6ense and credit )llowance
)llowance for Doubtful
Doubtful )ccount
)ccounts.
s.
b. debit ad Debt &6ense and credit )ccounts eceivable.
c. debit )llowa
)llowance
nce for Doubtful )ccounts
)ccounts and credit )ccounts
)ccounts eceivable.
eceivable.
d. debit )llowa
)llowance
nce for Doubtful )ccounts
)ccounts and credit
credit ad Debt &6ense.
4NS6 C
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
48. a
anning
nning Coman'
Coman' uses the ercentage
ercentage of receivables
receivables method
method for recording
recording bad debts
e6ense. he accounts receivable balance is =2$$"$$$ and credit sales are =1"$$$"$$$. )n
aging of accounts receivable shows that 5> will be uncollectible. 7hat adjusting entr' will
(anning Coman' ma?e if the )llowance for Doubtful )ccounts has a credit balance of
=2"$$$ before adjustment
a. ad Debts
Debts &6ense
&6ense
%"$$$
%"$$$
)llowance for Doubtful )ccounts
%"$$$
b. ad Debts &6ense
1$"$$$
)llowance for Doubtful )ccounts
1$"$$$
c. ad Debts
Debts &6ense
&6ense
%"$$$
%"$$$
)ccounts eceivable
%"$$$
d. ad Debts
Debts &6ense
&6ense
1$"$$$
1$"$$$
)ccounts eceivable
1$"$$$
4NS6 )
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
420

Chater %+eceivables
5$. :nder the allowanc
allowancee method" when
when a 'ear-end
'ear-end adjustment
adjustment is made for estim
estimated
ated
uncollectible accounts
a. Eiabil
Eiabiliti
ities
es decr
decreas
ease.
e.
b. ,et ncome is unchanged.
c. otal
otal )ssets
)ssets are unchange
unchanged.
d.
d. otal
otal )ssets
)ssets decrease.
decrease.
4NS6 D
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
51. he amount
amount of a romissor
romissor'
' note is called
called the
a. re
real
ali;
i;abl
ablee value
value
b. maturit' value
c. fa
face
ce va
valu
luee
d. roc
rocee
eeds
ds
D/0 &as' O0 $%-$!
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
52. he amount of the
the romissor'
romissor' note
note lus the interest
interest earned
earned on the due date is called
called the
a. re
real
ali;
i;abl
ablee value
value
b. maturit' value
c. fa
face
ce va
valu
luee
d. net reali;
reali;able
able value
value
4NS6 
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
53. ) !$-da'" 1$> note for =%"$$$" dated )ril
)ril 15" is received from a customer on account. he
face value of the note is
a. =%"!$$
b. =#"2$$
c. =%"%$$
d. =%"$
%"$$$
4NS6 D
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
54. ) 8$-da'
8$-da'"" 12> note for =1$"$$$"
=1$"$$$" dated (a' 1" is received
received from a customer on account.
account. he
maturit' value of the note is
a. =1$"
1$"$$$
b. =1$"3$$
c. =45$
d. =8"5
8"55$
4NS6 
D/0 (oderate
O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

421
55. nterest
nterest on a note
note can be calculated
calculated without
without ?nowledge
?nowledge of the
the
a. noteFs
noteFs maturi
maturit'
t' date
date
b. rate of interest
c. notes
notes durat
duratio
ion
n
d. r
rin
inci
cial
al amoun
amountt
D/0 &as' O0 $%-$!
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
5!. On ,ovember
,ovember 1" la;er Coman'
Coman' receives
receives a !> interest
interest bearing
bearing note from am Coman'
Coman'
to settle a =2$"$$$ account
accoun t receivable. he note is due in si6 months. )t December 31"
la;er should record interest revenue of
a. =$
b. =1$$
c. =2$$
d. =!$$
D/0 (oderate
O0 $%-$!
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
5#. a.
f the
ma?er
ma?e
r of a romissor'
romissor' note fails
fails to a' the note
note on the due date" the note
note is said to be
dis
dislac
l
aced
ed
b. disallowed
c. dish
dishon
onor
ored
ed
d. disc
discou
ount
nted
ed
D/0 &as' O0 $%-$!
4NS6 C
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
5%. he journal
journal entr' to record
record a note received
received from a customer
customer to al' on account
account is
a. debit ,otes
,otes eceivableG
eceivableG credit
credit )ccounts
)ccounts eceivabl
eceivablee
b. debit )ccounts eceivableG credit ,otes
,otes eceivable
c. debit CashG credit ,otes eceivable
eceivable
d. debit ,otes
,otes eceivable
eceivableGG credit
credit ,otes *a'able
*a'able
4NS6 )
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
58. ) =!"$$$" 3$-da'" 12> note recorded on ,ovember 21 is not aid b' the ma?er at maturit'.
maturit'.
he journal entr' to recogni;e this event is
a. debit Cash"
Cash" =!"$!$G
=!"$!$G credit
credit ,otes
,otes eceivabl
eceivable"
e" =!"$!$
=!"$!$
b. debit )ccounts eceivable" =!"$!$G credit ,otes eceivable" =!"$$$G Credit nterest
eceivable" =!$
c. debit ,otes
,otes eceivable"
eceivable" =!"$!$G credit
credit )ccounts
)ccounts eceivabl
eceivable"
e" =!"$!$
d. debit )ccounts
)ccounts eceivable" =!"$!$G credit ,otes eceivable" =!"$$$G Credit nterest
evenue" =!$
D/0 (oderate
O0 $%-$!
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
422

Chater %+eceivables
!$. On ,ovember
,ovember 1" Jim Coman'
Coman' acceted
acceted a 3-month note receivabl
receivablee as a'ment for
for services
services
rovided to Chu Coman'. he
he terms of the note were =%"$$$ face value and !> interest.
Jim Coman' closes its boo?s at December 31 and does not use reversing entries. On
/ebruar' 1" the journal entr' to record the collection of the note should include a credit to
a. ,otes
,otes eceiv
eceivabl
ablee for =
=%"1
%"12$
2$
b. nterest eceivable for =12$
c. ntere
nterest
st even
evenue
ue for
for =12$
=12$
d. ntere
nterest
st evenu
evenuee for =4$
=4$
D/0 (oderate
O0 $%-$!
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!1. ) note receivab
receivable
le or romissor'
romissor' note
a. has the art' to
to whom the
the mone' is
is due as the ma?er.
ma?er.
b. is not a formal credit instrument.
c. cannot be factored
factored to another
another art'.
art'.
d. ma' be used
used to settle
settle an
an accounts
accounts receivabl
receivable.
e.
4NS6 D
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!2. 7hen a coman' receives
receives an interes
interest-bea
t-bearing
ring note receivabl
receivable"
e" it will
a. debit ,otes
,otes eceivable
eceivable for
for the maturit
maturit'
' value of the
the note.
b. debit ,otes eceivable for the face value of the note.
c. credit ,otes eceivabl
eceivablee for the maturit
maturit'
' value of the
the note.
d. credit ,otes eceivabl
eceivablee for the face
face value of the note.
note.
D/0 &as' O0 $%-$!
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!3. *ane Coman'
Coman' receives
receives a =3"$$$" 3-month"
3-month" !> romissor'
romissor' note
note from Dag
Dag Coman' in
settlement of an oen accounts receivable. 7hat entr' will *ane Coman' ma?e uon
receiving the note
a. ,otes
,otes eceiva
eceivable
ble
3"$
3"$$$
$$
)ccounts eceivableKDag Coman'
b. ,otes eceivable
3"$45
)ccounts eceivableKDag Coman'
c. ,otes
,otes eceiva
eceivable
ble
3"$
3"$45
45
)ccounts eceivableKDag Coman'
nterest evenue
d. ,otes
,otes eceiva
eceivable
ble
3"$
3"$$$
$$
nterest eceivable
)ccounts eceivableKDag Coman'
nterest evenue
45
4NS6 )
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3"$$$
3"$45
3"$$$
45
45
3"$$$
Chapter 8/Receivables

423
!4. he maturit'
maturit' value
value of a =2$"$$$"
=2$"$$$" 8>" 4$-da'
4$-da' note receivab
receivable
le dated ul'
ul' 3 is
a. =2
=2$"
$"$$
$$$.
$.
b. =2$"2$$.
c. =2
=21"
1"%$
%$$.
$.
d. =2
=22"
2"$$
$$$.
$.
D/0 &as' O0 $%-$!
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!5. Larer Coman'
Coman' lends
lends Lewell
Lewell Coman' =2$"$$$
=2$"$$$ on (arch 1" acceting
acceting a four-mon
four-month"
th" !>
interest note. Larer Coman' reares financial statements on (arch 31. 7hat adjusting
entr' should be made before the financial statements can be reared
a. Cash
1$
1$$
nterest evenue
1$$
b. nterest eceivable
3$$
nterest evenue
3$$
c. ntere
nterest
st eceiva
eceivable
ble
1$$
nterest evenue
1$$
d. ,ote
,ote eceiva
eceivable
ble
2$"
2$"$$$
$$$
Cash
4NS6 C
D/0 &as' O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2$"$$$
!!. right
right Co. holds *ar? Co.Hs
Co.Hs =2$"$$$"
=2$"$$$" 12$ da'" 8> note.
note. he entr' made b' right
right Co. when
the note is collected" assuming no interest has reviousl' been accrued is0
a. Cash
Cash
2$"$
2$"$$$
$$
,otes eceivable
2$"$$$
b. )ccounts eceivable
2$"!$$
,otes eceivable
2$"$$$
nterest evenue
!$$
c. Cash
Cash
2$
2$"!
"!$$
$$
,otes eceivable
2$"$$$
nterest evenue
d. )ccount
)ccountss eceiva
eceivable
ble
2$"!$$
2$"!$$
,otes evenue
nterest evenue
4NS6 C
D/0 (oderate
O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!$$
2$"$$$
!$$
!#. eceivables
eceivables are usuall'
usuall' listed
listed on the balance
balance sheet after
after Cash in what
what order
order
a. )ccounts
)ccounts eceivable"
eceivable" ,otes
,otes eceivable"
eceivable" nterest
nterest eceivabl
eceivablee
b. nterest eceivable" ,otes eceivable" )ccounts
)ccounts eceivable
c. ,otes eceivable
eceivable"" nterest
nterest eceivable"
eceivable" )ccounts
)ccounts eceivable
eceivable
d. ,otes eceivable"
eceivable" )ccount
)ccountss eceivable"
eceivable" nterest eceivable
eceivable
D/0 &as' O0 $%-$#
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
424

Chater %+eceivables
!%. eceivables
eceivables are usuall'
usuall' listed
listed in order
a. of th
thee due
due da
date
te
b. of the si;e
c. alha
alhabe
beti
tica
call
ll'
'
d. of li
li<ui
<uidi
dit'
t'
D/0 &as' O0 $%-$#
4NS6 D
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!8. )ccounts
)ccounts eceivabl
eceivablee urnov
urnover
er measures
measures
a. how fre<uentl'
fre<uentl' during
during the 'ear the
the accounts receivab
receivable
le are converted
converted to cash
b. the number of da's outstanding
c. the fair
fair mar?et
mar?et value of accounts
accounts receivab
receivable
le
d. the efficienc
efficienc'
' of the accounts
accounts a'able
a'able function
function
4NS6 )
D/0 &as' O0 $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#$. he number
number of da'sF
da'sF sales
sales in receivabl
receivables
es
a. is an estimate
estimate of the length
length of time
time the receivables
receivables have been
been outstanding
outstanding
b.
c.
d.
4NS6
,)00
,)
measures
the
number
of times
the
receivables
turn over each 'ear
is ,et Credit
Cred
it ales
divided
divided
b' )ve
)
verage
rage eceivables
eceivables
is not meaningf
meaningful
ul and therefo
therefore
re is not
not used
used
)
D/0 &as' O0 $%-$#
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
#1. n reference
reference to a romissor'
romissor' note"
note" another
another word for Bdiscount
BdiscountBB is
a. matu
maturrit'
it'
b. sale
c. u
urrch
chas
asee
d. in
inte
tere
rest
st
4NS6 D
D/0 &as' O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#2. he amount received
received b' the
the endorser after
after discounti
discounting
ng a note receivable
receivable at the ban? is called
called
the
a. roc
rocee
eeds
ds
b. maturit' value
c. fa
face
ce va
valu
luee
d. re
real
ali;
i;abl
ablee valu
valuee
4NS6 )
D/0 &as' O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables

425
#3. ) !$-da'
!$-da'"" 12> note
note for =1$"$$$"
=1$"$$$" dated (a'
(a' 1" is received
received from
from a customer
customer on account.
account. f
the note is discounted on (a' 21 at 15>" the roceeds are
a. =1#$
b. =8"%3$
c. =1$"
1$"$$$
d. =1
=1$"
$"$3
$3$
$
4NS6 D
D/0 (oderate
O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#4. ) !$-da'
!$-da'"" 12> note
note for =1$"$$$"
=1$"$$$" dated (a'
(a' 1" is received
received from
from a customer
customer on account.
account. f
the note is discounted on une 1$ at 15>" the roceeds are
a. =1
=1$"
$"1
115
b. =1$"2$$
c. =1$"
1$"$$$
d. =1
=1$"
$"$3
$3$
$
D/0 (oderate
O0 $%-)
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#5. )
!$-da'"
note
note foron=1$"$$$"
=1$"$
(a'
(a'
is received
received
from
from arevenue
customer
customer
account.
account.
the!$-da'
note is" 12>
discounted
(a'$$"
21 dated
at 15>"
the1"amount
of interest
or on
e6ense
to bef
recorded b' the a'ee of the note on (a' 21 is
a. =3$ intere
interest
st e6ens
e6ensee
b. =3$ interest revenue
c. =1#$ intere
interest
st revenue
revenue
d. =1#$ intere
interest
st e6en
e6ense
se
4NS6 
D/0 (oderate
O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#!. ) !$-da'
!$-da'"" 12> note received
received from a customer
customer for =5$"$$$" dated
dated (a' 15" is endorsed to the
ban? on (a' 25" and the ban? discounts the note at 15>. f the note is dishonored b' the
ma?er and the ban? charges a =2$ rotest fee" what is the amount a'able to the ban? on
ul' 14
a. =51"
51"$$$
b. =51"$2$
c. =5!"
5!"$2$
d. =5
=5$"
$"$$
$$$
$
D/0 (oderate
O0 $%-)
4NS6 
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
426

Chater %+eceivables
##. ) 8$-da'" 12> note for =2$"$$$" dated )ril
)ril 1$" is received from a customer on account. f
the note is discounted at 15> on (a' 1$" the due date is
a. ul' 8
b. ul' 1$
c. ul' 11
d. ul' %
4NS6 )
D/0 Difficult
O0 $%-)
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#%. ) 8$-da'" 12> note for =2$"$$$" dated )ril
)ril 1$" is received from a customer on account. f
the note is discounted at 15> on (a' 1$" the da's in the discount eriod are
a. !$
b. 8$
c. 12$
d. 3$
D/0 (oderate
O0 $%-)
4NS6 )
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
E9ERCISE/OTER
1.
Other than accounts
accounts receivable
receivable and
and notes
notes receivable
receivable"" name other receivables
receivables that might
might be
be
included in the general ledger.
4NS6
nterest eceivable" eceivables from Officers or &mlo'ees" a
a6es
6es eceivable.
D/0 &as' O0 $%-$1
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2.
f sales
sales ersonnel
ersonnel are
are allowed
allowed to arove
arove customer
customer credit
credit"" how might
might the
the cost of aroving
aroving
oor credit ris? be controlled
4NS6
)llow sales ersonnel to arove customer credit for onl' sales of small amounts.
D/0 &as' O0 $%-$2
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3.
On (arch
(arch 31st
31st the coman' determines
determines that
that it needs to recogni;e
recogni;e =1"85$.$$
=1"85$.$$ in uncolle
uncollectibl
ctiblee
accounts e6ense based on an evaluation of accounts receivable. ournali;e this recognition.
4NS6
(ar 31st :ncollectible )ccounts &6ense
1"85$.$$
)llowance for Doubtful )ccounts
1"85$.$$
D/0 &as' O0 $%-$2
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
Chapter 8/Receivables
4.

42#
ournali;e
ournali;e the
the following
following transa
transaction
ction using
using the
the direct
direct write-of
write-offf met
method
hod of accounti
accounting
ng for
uncollectible receivables.
une 1$ eceived =1"3$$ from an Downs and wrote
wrote off the remainder
remainder owed of =4"2$$.
Oct. 11 einstated the account of an Downs and received =4"2$$ cash in full a'ment.
4NS6
une 1$
Cash
1"3$$
ad Debt &6ense
4"2$$
)ccounts eceivable-an Downs
5"5$$
Oct 11
11
1
1
)ccounts eceivable-an Downs
ad Debt &6ense
4"2$$
Cash
)ccounts eceivable-an Downs
4"2$$
4"2$$
4"2$$
D/0 &as' O0 $%-$3
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-1
5.
(ega tamers
tamers utili;es
utili;es the
the direct
direct write-of
write-offf method
method for account
accountss receivable.
receivable. On
On etember
etember
15th it is notified b' the attorne's for Lub Ca en that Lub Ca en is ban?rut and no
cash is e6ected in the li<uidation of Lub Ca enHs. ournali;e the =!55.$$ shown as
accounts receivable from Lub Ca enHs as a write-off.
4NS6
et 15th :ncollectible )ccounts &6ense
!55.$$
)ccounts eceivable - Lub Ca en
!55.$$
D/0 &as' O0 $%-$3
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
!.
he followin
following
g journal
journal entries
entries illust
illustrate
rate the
the two methods
methods of accounting
accounting for
for uncollect
uncollectible
ible
receivables. dentif' each.
@aA
:ncollectible )ccounts &6ense
)ccounts eceivable-illings
45$
@bA
)llowance for Doubtful )ccounts
)cccounts eceivable-Lelena
)
45$
4NS6
@a
@aAA Dire
Direct
ct 7ri
7rite
te-O
-Off
ff (eth
(ethod
od
@bA
)l
)llo
lowa
wanc
ncee (etho
ethod
d
45$
45$
428

Chater %+eceivables
D/0 &as' O0 $%-$3  $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#.
Determine
Determine the amount to
to be added to )llowa
)llowance
nce for Doubtf
Doubtful
ul )ccount
)ccountss in each
each of the
following cases. ndicate the ending balance
balance in each case.
@aA
@bA
Credit
Credit balance
balance of =4$$ in
in the allowance
allowance account
account just rior to adjustm
adjustment.
ent. )nal'sis
)nal'sis
of accounts receivable indicates doubtful accounts of =%"5$$.
Credit
Credit balance
balance of =4$$ in
in the allowance
allowance account
account just rior to adjustm
adjustment.
ent.
:ncollectible accounts are estimated at 2> of sales" which totaled =1"$$$"$$$ for
the 'ear.
4NS6
@aA =%"1$$
1$$ an
and =%
=%"5$$
5$$
@bA =2
=2$"
$"$$
$$$
$ and
and =2
=2$"
$"4$
4$$
$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
%.
(ega ales
ales has
has 9ross
9ross sales
sales of =1"525"$$$.
=1"525"$$$.$$.
$$. Of these sales"
sales" =1"1#5"$$$.$$
=1"1#5"$$$.$$ were on
on
accounts receivable. During the 'ear of 2$$# there were sales returns
returns and allowances and
sales discounts on sales made on account of =55"$$$.$$. (ega ales calculates that ! 1+2>
of the eriod sales less sales returns and allowances and sales discounts will be
uncollectible.
Calculate the net reali;able value of sales and write the journal entr' to recogni;e the eriod
e6ense of uncollectible accounts.
4NS6
*eriod credit sales
=1"1#5"$$$
Eess sales returns" allowances" and discounts
55"$$$
,et sales on account
=1"12$"$$$
*ercentage estimate for uncollectibles
)mount calculated to be uncollectible
! 1+2>
=#2"%$$.$$
Dec 31" 2$$# :ncollectible )ccounts &6ense
#2"%$$.$$
)llowance for Doubtful )ccounts
D/0 Difficult
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#2"%$$.$$
Chapter 8/Receivables
8.

428
ournali;e
ournali;e the followi
following
ng transact
transactions
ions using
using the
the allowance
allowance method
method of
of accounting
accounting for
uncollectible receivables.
une 1$ eceived =1"3$$ from an Downs and wrote
wrote off the remainder
remainder owed of =4"2$$.
Oct. 11 einstated the account of an Downs and received =4"2$$ cash in full a'ment.
4NS6
une 1$
Cash
1"3$$
)llowance for Doubt
btfful )ccounts
4"2$
"2$$
)ccounts eceivable-an Downs
5"5$$
Oct 11
11
1
1
)ccounts eceivable-an Downs
ad Debt &6ense
4"2$$
Cash
)ccounts eceivable-an Downs
4"2$$
4"2$$
4"2$$
D/0 &as' O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-2
1$. )t the end of the current 'ear"
'ear" )ccounts
)ccounts eceivable
eceivable has a balance
balance of =#$$"$$$G )llowan
)llowance
ce
for Doubtful )ccounts has a credit balance of =5"5$$G and net
n et sales for the 'ear total
=2"5$$"$$$. ad Debt &6ense is estimated at 1+2 of 1> of net sales.
Determine @aA the amount of the adjusting entr' for uncollectible accountsG @bA the adjusted
balances of )ccounts eceivable" )llowance of Doubtful )ccountsG and ad Debt &6enseG
and @cA the net reali;able value of accounts receivable.
4NS6
@aA
=12"5$$ @=2"5$$"$$$ × .$$5A
)djusted alance
@bA
)ccounts eceivable
)llowance for Doubtful )ccounts @=5"5$$ M =12"5$$A
ad Debt &6ense
=#$$"$$$
1%"$$$
12"5$$
@cA
,et reali;able value @ =#$$"$$$ - =1%"$$$A
=!%2"$$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-3
430

Chater %+eceivables
11. )t the end of the current 'ear"
'ear" )ccounts
)ccounts eceivable
eceivable has a balance
balance of =8$$"$$$G )llowan
)llowance
ce
for Doubtful )ccounts has a credit balance of =3"5$$G and net
n et sales for the 'ear total
=3"$$$"$$$. ad Debt &6ense is estimated at 1+2 of 1> of net sales.
Determine @aA the amount of the adjusting entr' for uncollectible accountsG @bA the adjusted
balances of )ccounts eceivable" )llowance of Doubtful )ccountsG and ad Debt &6enseG
and @cA the net reali;able value of accounts receivable.
4NS6
@aA
=15"$$$ @=3"$$$"$$$ × .$$5A
)djusted alance
@bA
)ccounts eceivable
=8$$"$$$
)llowance for Doubtful )ccounts @=3"5$$ M =15"$$$A
1%"5$$
ad Debt &6ense
15"$$$
@cA
,et reali;able value @ =8$$"$$$ - =1%"5$$A
=%%1"5$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-3
12. )t the end of the current 'ear"
'ear" )ccounts
)ccounts eceivable
eceivable has a balance
balance of =#$$"$$$G )llowan
)llowance
ce
for Doubtful )ccounts has a credit balance of =5"5$$G and net
n et sales for the 'ear total
=2"5$$"$$$. :sing the aging method" the balance of )llowance for Doubtful )ccounts is
estimated as =25"$$$.
Determine @aA the amount of the adjusting entr' for uncollectible accountsG @bA the adjusted
balances of )ccounts eceivable" )llowance of Doubtful )ccountsG and ad Debt &6enseG
and @cA the net reali;able value of accounts receivable.
4NS6
@aA
=18"5$$ @=25"$$$ -=5"5$$A
)djusted alance
@bA
@cA
)
ivoau
bbletful )ccounts @=5"5$$ M =18"5$$A
)cllcoowuanntscefeocreD
ad Debt &6ense
=#$
$""$
$$
$$
$
25
,et reali;able value @ =#$$"$$$ - =25"$$$A
=!#5"$$$
18"5$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-4
Chapter 8/Receivables

431
13. )t the end of the current 'ear"
'ear" )ccounts
)ccounts eceivable
eceivable has a balance
balance of =%$$"$$$G )llowan
)llowance
ce
for Doubtful )ccounts has a credit balance of =3"5$$G and net
n et sales for the 'ear total
=3"$$$"$$$. ad Debt &6ense is estimated at 1+2 of 1> of net sales.
Determine @aA the amount of the adjusting entr' for uncollectible accountsG @bA the adjusted
balances of )ccounts eceivable" )llowance of Doubtful )ccountsG and ad Debt &6enseG
and @cA the net reali;able value of accounts receivable.
4NS6
@aA
=15"$$$ @=3"$$$"$$$ × .$$5A
)djusted alance
@bA
)ccounts eceivable
=%$$"$$$
)llowance for Doubtful )ccounts @=3"5$$ M 15"$$$A
1%"5$$
ad Debt &6ense
15"$$$
@cA
,et reali;able value @ =%$$"$$$ - =1%"5$$A
=#%1"5$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-3
14. )t the end of the current 'ear"
'ear" )ccounts
)ccounts eceivable
eceivable has a balance
balance of =8$$"$$$G )llowan
)llowance
ce
for Doubtful )ccounts has a credit balance of =3"5$$G and net
n et sales for the 'ear total
=3"$$$"$$$. :sing the aging method" the balance of )llowance for Doubtful )ccounts is
estimated to be =35"$$$.
Determine @aA the amount of the adjusting entr' for uncollectible accountsG @bA the adjusted
balances of )ccounts eceivable" )llowance of Doubtful )ccountsG and ad Debt &6enseG
and @cA the net reali;able value of accounts receivable.
4NS6
@aA
=31"5$$ @=35"$$$ -=3"5$$A
)djusted alance
@bA
@cA
)
ivoau
bbletful )ccounts @=3"5$$ M =31"5$$A
)cllcoowuanntscefeocreD
ad Debt &6ense
=8$
$""$
$$
$$
$
35
,et reali;able value @ =8$$"$$$ - =35"$$$A
=%!5"$$$
31"5$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-4
432

Chater %+eceivables
15. (ega tamers
tamers utili;es
utili;es the allowance for doubtful
doubtful accounts
accounts method for accounts
accounts receivabl
receivablee
that are deemed uncollectible. On December
D ecember 12th it is notified b' /anc
/anc'
' 7heels and ir
ires
es
that it is submitting =2#5.$$ in settlement of its =55$.$$ outstanding accounts receivable.
Due to the ownerHs failing health the coman' is closing
c losing and it e6ects to ma?e no further
a'ments. ournali;e this declaration.
4NS6
Dec 12th
Cash
2#5.$$
)llowance for Doubtful )ccounts
2#5.$$
)ccounts eceivable - /anc' 7heels and ires
55$.$$
D/0 (oderate
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
1!. On une 3$th the
the coman' has a credit
credit balance
balance of =2#"2#5.$$
=2#"2#5.$$ in its allowance
allowance for doubtful
doubtful
accounts. )n evaluation of accounts receivable indicates that the roer balance should be
=31"$25.$$. ournali;e this recognition.
4NS6
un 3$th :ncollectible )ccounts &6ense
3"#5$.$$
for Doubtful )ccounts
D/0 &as' O0 )llowance
$%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
3"#5$.$$
1#. 9ood Da' ervice
ervice Center
Center received
received a 12$-da'"
12$-da'" !> note
note for =5$"$$$"
=5$"$$$" dated
dated )ril
)ril 12 from
from a
customer on account.
@aA
@aA
@bA
@bA
@cA
Dete
Determ
rmin
inee tthe
he due
due dat
datee of
of the
the no
note
te..
Dete
Determ
rmin
inee tthe
he matu
maturi
rit'
t' value
value of the
the not
note.
e.
ourna
ournali;
li;ee the eentr
ntr'
' to reco
record
rd the
the recei
receitt of the
the a'
a'ment
ment of the
the no
note
te at maturi
maturit'
t'..
4NS6
@aA
)ugu
)ugust
st 1$ de
detterm
ermine
ned
d as fol
follows
lows00
)ril
(a'
une
ul'
)ugust
otal
@b
@bAA
1% da's @3$-12A
31 da's
3$ da's
31 da's
1$ da's
12$ da's
=51"
=51"$$
$$$
$ N=5
N=5$"
$"$$
$$$
$ M @=5$
@=5$"$
"$$$
$$ 6 !>
!> 6 @12$
@12$+3
+3!$
!$A
A
@cA
)ug. 1$
Ca
Cash
,ote eceivable
nterest evenue
51"$$$
5$"$$$
1"$$$
Chapter 8/Receivables

433
D/0 (oderate
O0 $%-$!
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement O*0 &6amle &6ercise %-5
1%. Calcul
Calculate
ate the
the foll
followi
owing0
ng0
@aA
@bA
f the
the interest
interest on a note is
is =5$$" the
the interest
interest rate
rate is !> and the
the time
time is !$ da's"
da's" what
is the rincial
f the
the rincial
rincial of a note is
is =3$"$$$"
=3$"$$$" the interes
interestt is =5$$
=5$$ and the
the time is
is !$ da's"
da's"
what is the interest rate
4NS6
@a
@aAA =5$"
=5$"$$
$$$
$ @=
@=5$
5$$
$ P 3!
3!$+
$+!$
!$AA Q .$!
.$!
@b
@bAA 1$>
1$> @=5$$
@=5$$ Q =3$"
=3$"$$$
$$$AA P @3!$
@3!$+!
+!$A
$A R 1$>
1$>
D/0 &a
&as'
O0 $%-$#
,)00 ))C
,)
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
18. Determine
Determine the due
due date and amount
amount of interes
interestt due at maturit'
maturit' on
on the foll
following
owing notes0
notes0
@aA
@bA
Origination
Date
(ar 1
(a' 15
/ace
)mount
=4"$$$
=8"$$$
erm
of ,ote
!$ da's
8$ da's
nterest
ate
8>
%>
(aturit'
Date
SSSSSSSSSS
SSSSSSSSSS
nterest
)mount
SSSSSSSSSS
SSSSSSSSSS
4NS6
@aA )ril 3$G =!$ R @=4"$$$ × .$8A × @!$+3!$A
@bA )ugust 13G =1%$ R @=8"$$$ × .08) × (90/360)
D/0 &a
&as'
O0 $%-$#
,)00 ))C
,)
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
2$. ased on the
the following
following data
data and using
using a 3!5-da' 'ear"
'ear" comute
comute @aA
@aA the accounts
accounts receivab
receivable
le
turnover and @bA the number of da'sH
d a'sH sales in receivables. he industr' average is a
collection eriod of once ever' 2$ da's" and the number
n umber of da'sH sales
sales in receivables
average 1$. @cA Comment on this situation.
12+31+$# )ccounts eceivable" net
12+31+$% )ccounts eceivable" net
/or the 'ear ended 12+31+$#" net credit sales
/or the 'ear ended 12+31+$%" net credit sales
4NS6
@a
@aAA =1"!$
=1"!$$"
$"$$$
$$$ Q N@=8
N@=8$"
$"$$$
$$$ M =#$"
=#$"$$$
$$$AA Q 2
2 R 2$
@bA
@cA
=#$"$$$
=#$"$$$ Q @=1"!
@=1"!$$"$
$$"$$$
$$ Q 3!5 da'sA
da'sA R 15.8#
15.8# da's
da's
his
his situa
situatio
tion
n is bett
better
er than
than the
the indus
industr'
tr' averag
average.
e.
=8$"$$$
=#$"$$$
=1"25$"$$$
=1"!$$"$$$
434

Chater %+eceivables
D/0 (oderate
O0 $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
1ROB5E
1.
/or a business
business that
that ma?es
ma?es advance rovision
rovision for uncoll
uncollectibl
ectiblee receivabl
receivables
es
@aA
ourna
ournali;
li;ee the entrie
entriess to record
record the foll
followi
owing0
ng0
@1A ecord the adjusti
adjusting
ng entr'
entr' at December
December 31" the end of the fiscal
fiscal 'ear"
'ear" to
rovide for doubtful accounts. he accounts receivable account has a balance
of =%$$"$$$" and the contra asset account before adjustment has a debit
balance of =!$$. )nal'sis of the receivables
receivables indicates doubtful accounts of
=2$"$$$.
@2A n (arch
(arch of the followi
following
ng fiscal
fiscal 'ear"
'ear" the =55$
=55$ owed b' /la?e
/la?e Co. on account
account
is written off as uncollectible.
@3A &ight months
months later"
later" =2$$ of the /la?e
/la?e Co.
Co. account
account is reinstated
reinstated and a'ment
a'ment of
that amount is received.
@4A n October"
October" =4$$ is received
received on the
the =!$$ owed b' Doe Co.
Co. and the
the remainder
remainder
@bA
written
offin
as@aA
uncollectible.
asedison
the data
@1A above"
above" what
what is the net
net reali;able
reali;able value of
of the accounts
accounts
receivable as reorted on the balance sheet as of December 31
)ssuming
)ssuming that
that the
the business
business had
had been following
following the
the direct
direct writewrite-off
off rocedure
rocedure in
accounting for uncollectible receivables" journali;e the entries to record the
following0
@1A ecorde
ecorded
d the write
write-of
-offf of account
account of
of /la?e
/la?e Co. N@aA
N@aA @2A above
above.
.
@2A einstated
einstated account
account of /la?e Co. for
for =2$$
=2$$ and recorded
recorded a'ment
a'ment of
of that
that
amount received N@aA @3A above.
@3A ecorded
ecorded the receit
receit of =4$$ from
from Doe Co. in
in @aA @4A ab
above
ove and wrote
wrote off the
remainder owed as uncollectible.
@cA
Chapter 8/Receivables
4NS6
@aA
@1A
@2A
@3A
@4A
@bA
@bA
:ncollectible )ccounts &6ense
)llowance for Doubtful )ccounts
2$"!$$
2$"!$$
)llowance for Doubtful )ccounts
)ccounts eceivable-/la?e Co
55$
)ccounts eceivable-/la?e Co
)llowance for Doubtful )ccounts
2$$
55$
2$$
Cash
Ca
)ccounts eceivable-/la?e Co
2$$
Cash
)llowance for Doubtful )ccounts
)ccounts eceivable-Doe Co
4$$
2$$
2$$
!$$
=#
=#%$"
%$"$$
$$$
$ @=%$
@=%$$"
$"$$$
$$$ - =2$"$
=2$"$$$A
$$A
@cA
@1A
@2A
@3A
:ncollectible )ccounts &6ense
)ccounts eceivable-/la?e Co
55$
)ccounts eceivable-/la?e Co
:ncollectible )ccounts &6ense
2$$
Cash
)ccounts eceivable-/la?e Co
2$$
Cash
4$$
:ncollectible )ccounts &6ense
)ccounts eceivable-Doe Co
2$$
D/0 (oderate
O0 $%-$3  $%-$4  $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
55$
2$$
2$$
!$$

435
436

2.
he aging
aging of /reedom
/reedom ales
ales is shown
shown below.
below. Calculate
Calculate the amount
amount of each eriodi
eriodicit'
cit' range
range
that is deemed to be uncollectible. he )llowance for Doub
Doubtful
tful )ccounts carries a credit
balance of =1"135.$$. 7rite the adjusting entr' for the end of the current 'ear.
Chater %+eceivables
)ge nterval0
,ot ast due
1T3$ da's ast due0
31T!$ da's ast due0
!1T8$ da's ast due0
81T1%$ da's ast due0
1%1T3!5 da's ast due0
Over 3!5 da's ast due0
otal0
alance0
#5$"$$$
4#"5$$
21"#5$
11"25$
5"$!5
2"5$$
1"145
%38"21$
&st :ncollectible )ccts
*ercentage0
)mount0
2.5$>
5.$$>
1$.$$>
2$.$$>
3$.$$>
5$.$$>
85.$$>
4NS6
)ge nterval0
,ot ast due
1T3$ da's ast due0
31T!$ da's ast due0
!1T8$ da's ast due0
81T1%$ da's ast due0
1%1T3!5 da's ast due0
Over 3!5 da's ast due0
otal0
Dec 31
alance0
#5$"$$$
4#"5$$
21"#5$
11"25$
5"$!5
2"5$$
1"145
%38"21$
&st :ncollectible )ccts
*ercentage0
)mount0
2.5$>
1%"#5$.$$
5.$$>
2"3#5.$$
1$.$$>
2"1#5.$$
2$.$$>
2"25$.$$
3$.$$>
1"518.5$
5$.$$>
1"25$.$$
85.$$>
1"$%#.#5
28"4$#.25
:ncollectible )ccounts &6ense
2%"2#2.25
)llowance for Doubtful )ccounts
Calc
Ca
lcul
ulat
atio
ion
n of e6ens
e6ense0
e0 )mo
)mount
unt of
of calcu
calcula
late
ted
d uncoll
uncollec
ecti
tibl
blee accou
account
ntss
Eess credit balance of account
)dditional credit amount to establish calcHd
value
D/0 Difficult
O0 $%-$4
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
2%"2#2.25
=28"4
=28"4$#
$#.25
.25
1"135.$$
=2%"2#2.25
Chapter 8/Receivables

3.
43#
(r. * issued
issued a 8$-da'
8$-da'"" #> note
note for =2$$"$$$"
=2$$"$$$" dated /ebruar
/ebruar'
' 3rd to
to U7V Co. on account.
account.
@aA Determine the due date of the note.
@bA Determine the interest.
@bA Determine the maturit'
maturit' value of the
the note.
@cA ournali;e the entr' to record
record the receit of the note b' U7V Co.
@dA ournali;e the entr' to record the receit of a'ment of the note at maturit' b' U7V
U7V
Co.
4NS6
@aA (a' 4
/eb 4 - /eb 2%
(arch
)ril
(a'
@b
@bAA
25 da's
31 da's
3$ da's
4 da's
8$ da's
nte
ntere
rest
st R /ace
/ace )m
)moun
ountt @or
@or ri
rinci
ncia
alA
lA P ate
ate P ime
ime
nterest R =2$$"$$$ × .07 × 90/360
nterest R =3"5$$
W@@cA
cA
(atu
(aturi
rit'
t' Ualu
luee R /a
/ace
ce )moun
mountt M nte
ntere
rest
st
(aturit' Ualue
Ualue R =2$$"$$$ M 3"5$$
(aturit' Ualue R =2$3"5$$
@dA
Cash
203,500
,otes eceivable
nterest evenue
D/0 (o
(oderate
200,000
3,500
O0 $%-$4
,)00 ))C
,)
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
4.
East Da' ervice
ervice Center
Center received
received a 8$-da'
8$-da'"" !>
!> note
note for =5$"$$$" dated (arch 12 from
from a
customer on account.
@aA
@bA
@c
@cAA
Determine the due date of the note.
Deter
erm
mine th
the m
maaturit' valu
alue of
of th
the no
note.
our
ournal
nali;
i;ee the
the ent
entr'
r' to
to rec
recor
ord
d tthe
he rec
recei
eit
t of the
the a
a'm
'ment
ent of the
the no
note
te at matu
maturi
rit'
t'..
438

Chater %+eceivables
4NS6
@aA
une 1$
1$ de
determi
rmined
ned as
as fo
follows0
(arch
)ril
(a'
une
otal
@bA
18 da's @31-12A
3$ da's
31 da's
1$ da's
8$ da's
=5$"#5$ N=5$"$$$ M @=5$"$$$ × !> × @8$+3!$A
@cAX
une 1$
Cash
,ote eceivable
nterest evenue
D/0 (o
(oderate
50,750
50,000
750
O0 $%-$!
,)00 ))C
,)
))C )nal'tic
)nal'tic  )C*)
)C*) /,-(easurement
5.
7olfe
7olfe Coman'
Coman' issued
issued a !$-da'"
!$-da'" %> note
note for =15"$$$"
=15"$$$" dated
dated )ril
)ril 5"
5" to Eam
Eamb
b Coman' on
account.
@a
@aAA
@bA
@cA
Dete
Determ
rmin
inee the
the due
due dat
datee of th
thee note
note..
Determ
Determine
ine the maturi
maturit'
t' value
value o
off the
the note
note..
ourna
ournali;
li;ee the entrie
entriess to record
record the foll
followi
owing0
ng0
@1A
@1A re
recei
ceit
t of
of the
the not
notee b' the
the a'e
a'ee"
e" and
and
@2A receit
receit b' the
the a'ee
a'ee of the
the amount
amount due on the note at maturit'.
maturit'. ound answers
answers
to the nearest =1.
4NS6
@aA
une 4
@bA
=15"2$$
@cA
,ote eceivable-7olfe Co
)ccount eceivable-7olfe Co
15"$$$
Cash
,ote eceivable-7olfe Co
nterest evenue
15"2$$
D/0 &as' O0 $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
15"$$$
15"$$$
2$$
Chapter 8/Receivables
!.

On the basis
basis of the followin
following
g data related
related to
to assets
assets due within
within one
one 'ear for
for 7al
7all'
l' Co."
reare a artial balance sheet in good form at December 31" 2$$5. how total current
assets.
Cash
,otes receivable
)ccounts receivable
)llowance for doubtful accounts
nterest receivable
=125"$$$
5$"$$$
2#5"$$$
25"$$$
1"$$$
4NS6
7all' Co.
alance heet
December 31" 2$$5
)ssets
Current assets0
Caash
C
,otes receivable
)cccounts receivable
)
Eess allowance for doubtful accounts
nterest receivable
otal current assets
=125"$$$
5$"$$$
=2#5"$$$
25"$$$
25$"$$$
1"$$$
=42!"$$$
D/0 &as' O0 $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
#.
438
our
ournal
nali;
i;ee the foll
follow
owin
ing
g trans
transac
acti
tion
ons0
s0
(ar.. 1
(ar
(a' 3$
Dec.. 11
Dec
eceiv
eceived
ed a 8
8$-d
$-da'
a'"" 1$>
1$> note
note for
for =3!"
=3!"$$$"
$$$" dated
dated (arch
(arch 1" from
from ur?e
ur?e Co.
Co. on
account.
he
he not
notee of (arc
(arch
h 1 was
was dish
dishon
onor
ored
ed..
)ccet
)cceted
ed =33
=33"$$
"$$$
$ in full
full sett
settlem
lement
ent of the amount
amount owed
owed on the note
note
dishonored on (a' 3$. he allowance method of accounting for uncollectible
receivables is used.
440

Chater %+eceivables
4NS6
(ar. 1
,otes eceivable
)ccounts eceivable-ur?e Co.
3!"$$$.$$
3!"$$$.$$
(a'. 3$ )ccounts eceivable-ur?e Co.
,otes eceivable
nterest evenue
3!"8$$.$$
Dec. 11
33"$$$.$$
3"8$$.$$
3!"$$$.$$
8$$.$$
Ca
Cash
)llowance for Doubtful )ccounts
)ccounts eceivable-ur?e Co.
3!"8$$.$$
D/0 (oderate
O0 $%-$4  $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
%.
he follow
following
ing are
are the
the current
current asset
assetss from
from La'
La' Co.
Co. as of December
December 31" 2$$#0
2$$#0
)ccounts eceivable
42"$$$
)llowance for Doubtful )ccounts
Cash
nterest eceivable
(erchandise nventories
,otes eceivable
3"$$$
#4"$$$
3"5$$
1$4"$$$
1$$"$$$
*reare the current asset section of the balance sheet.
4NS6
La' Co.
alance heet
December 31" 2$$#
)ssets
Current )ssets0
Cash
,otes eceivable
)ccounts eceivable
Eess allowance for doubtful accounts
nterest eceivable
(erchandise nventor'
otal Current )ssets
D/0 (oderate
O0 $%-$#
,)00 ))C )nal'tic
,)
)nal'tic  )C*)
)C*) /,-(easurement
= #4"$$$
1$$"$$$
42"$$$
3"$$$
38"$$$
3"5$$
1$4"$$$
32$"5$$
Chapter 8/Receivables
8.

441
/or the
the fiscal
fiscal 'ear
'earss 2$$# an
and
d 2$$%"
2$$%" )C
)C Co. reo
reorte
rted
d the follo
followin
wing0
g0
,et ales
)ccounts eceivable
Iear
Ie
ar &nded December 31"
2$$#
2$$%
=44"123"4%!
=3!"124"8!1
#48"321
#18"3!5
@aA Comute the accounts receivable turnover
turnover for 2$$%.
@bA Comute the number of da'sH sales in receivable at tthe
he end of 2$$%.
4NS6
@aA
)ccount
)ccountss recei
receivabl
vablee turnove
turnoverr R ,et
,et ales
ales + )verage
erage ac
accou
counts
nts rece
receiva
ivable
ble
)ccounts receivable turnover R 3!"124"8!1 + @@#48"321M#18"3!5A+2A
)ccounts receivable turnover R 48.18
@bA
,umber
,umber of da's
da'sHH sales
sales in recei
receivabl
vables
es R )ccou
)ccounts
nts recei
receivabl
vable"
e" end of 'ear+
'ear+)
)ve
ve..
dail' sales
,umber of da'sH sales in receivables R #18"3!5+@3!"124"8!1+3!5 da'sA
,umber of da'sH sales in receivables R #.3
D/0 (oderate
O0 $%-$#
,)00 ))C )nal'tic
,)
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)C*) /,-(easurement
1$. ournali;e
ournali;e the follow
following
ing transa
transactions
ctions00
(ar.. 1
(ar
)r. 3$
)r
)r.. 3$
)r
(a' 1$
eceiv
eceived
ed a !$
!$-da'
-da'"" 1$>
1$> note
note for =24"$$$
=24"$$$"" dated
dated toda'
toda'"" from
from o' Co.
Co. on
account.
ece
eceiv
ived
ed amo
amount
unt due
due on note
note above
above..
eceived
eceived a 8$-da'"
8$-da'" 1$>
1$> note
note for =4"%$$" dated )ril
)ril 3$"
3$" from
from ear
ear Co. on
account.
Discounted
Discounted the note
note dated )ril
)ril 3$ at hird
hird ,atio
,ational
nal an?
an? at a discount
discount rate
rate of
1$>.
442
Chater %+eceivables

4NS6
(ar. 1
)r. 3$
)r. 3$
(a' 1$
,otes eceivable
)ccounts eceivable-o' Co
24"$$$
Cash
,otes eceivable
nterest evenue
24"4$$
,otes eceivable
)ccounts eceivable-ear
Cash
nterest evenue
,otes eceivable
24"$$$
24"$$$
4$$
4"%$$
4"%$$
4"%13.33
1$.33
4"%$$.$$
D/0 Difficult
O0 $%-)
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11. account.
mall Co.
CoOn
. received
=1$"$$$"
=1$")shle'
$$$" 12>"
8$-d
a' note"the
dated
datnote
ed October
1" from
frat
om
7ade
7ade
Co. on the
Octobera 31"
Co. 8$-da'
discounted
at the ban?
8>.
Determine
items below and insert answers in the saces rovided.
@aA
@bA
@cA
@dA
@eA
@f
@fAA
Due date of note
(aturit' value of note
Discount eriod
Discount amount
*roceeds from discounting note
nte
ntere
rest
st SSSSS
SSSSSSS
SSSSS
SSSSSS
SSSSS
SSSSS
SSSSS
SSSSS
SSSS
S
@insert evenue or &6enseA
4NS6
@aA
@bA
@cA
@dA
@eA
@fA
December 3$
=1$"3$$
!$ da's
=15$.$$
=1$"15$.$$
evenue =1
=15$.$$
D/0 (oderate
O0 $%-)
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)C*) /,-(easurement
SSSSSSSSSS
SSSSSSSSSS
SSSSSSSSSS da's
SSSSSSSSSS
SSSSSSSSSS
SSSSSSSSSS