Receivables, Accounting

Question: Remmers Company on June 15 sells merchandise on account to Tucci Co. for $1000 terms 2/10, n/30. On June 20, Tucci Co. returns merchandise worth $300 to Remmers Company. On June 24, payment is received from Tucci Co. for the balance due. What is the amount of cash received?
A
$700

B
$680

C
$686

D
None

Note: Not available
1. Report
Question: Which of the following approaches for bad debts is best describe as a balance sheet method?
A
Percentage of receivables basis.

B
Direct write-off method.

C
Percentage of sales basis.

D
Both a and b

Note: Not available
1. Report
Question: Net sales for the month are $800,000 and bad debts are expected to be 1.5% of net sales. The company uses the percentage of sales basis.If the Allowance for Doubtful Accounts has a credit balance after adjustment?
A
$15,000

B
$27,000

C
$23,000

D
$31,000

Note: Not available
1. Report
Question: In 2002, Roland Carlson Company had net credit sales of $750,000. On January 1,2002, Allowance for Doubtful Accounts had a credit balance of $18,000. During written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31,2002?
A
$10,050

B
$10,500

C
$22,500

D
$40,000

Note: Not available
1. Report
Question: An analysis and aging of the accounts receivable of Machiavelli Company at December 31 reveals the following data.
Accounts receivable $800,000
Allowance for doubtful accounts per books before adjustment $50,000
Amounts expected to become unconnectable $65,000
The cash reliable value of the accounts receivable at December 31,after adjustment is:
A
$685,000

B
$750,000

C
$800,000

D
$735,000

Note: Not available
1. Report
Question: One of the following statements about promissory notes is incorrect. The incorrect statement is:
A
The party making the promise to pay is called the market.

B
The party to whom payment is to be made is called the payee.

C
A promissory note is not a negotiable instrument.

D
A promissory note is more liquid than an account receivable.

Note: Not available
1. Report
Question: Which of the following statement about VISA credit card sales is incorrect?
A
The credit card issuer makes the credit investigation of the customer.

B
The retailer is not involved in the collection process.

C
Two parties are involved.

D
The retailer receives cash more quickly than it would from individual customer on account.

Note: Not available
1. Report
Question: Morgan Retailers accepted $50,000 of Citibank VISA credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to Sales of $50,000 and a debit(s) to:
A
Cash $48,000 and Services Charges Expense $2,000

B
Accounts Receivable $48,000 and Service Charge Expense $2,000

C
Cash $50,000

D
Accounts Receivable $50,000

Note: Not available
1. Report
Question: Bickner Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Streisand Co. The entry to record this transcation is as follows.
A

Title Dr Cr
Note Receivable $1030 ---
Accounts Receivable --- $1030

B

Title Dr Cr
Note Receivable $1000 ---
Accounts Receivable --- $1000

C

Title Dr Cr
Note Receivable $1000 ---
Sales --- $1000

D

Title Dr Cr
Notes Receivable $1020 ---
Accounts Receivable --- $1020

Note: Not available
1. Report
Question: Schlicht Co. holds Osgrove Inc's $10,000, 120-day, 9% note. The entry made by Schlicht Co. when the note is collected, assuming no interest has been previously accured, is:
A

Title Dr Cr
Cash $10,300 ---
Notes Receivable --- $10,300

B

Title Dr Cr
Cash $10,000 ---
Notes Receivable --- $10,000

C

Title Dr Cr
Accounts Receivable $10,300 ---
Notes Receivable --- $10,300

D

Title Dr Cr
Cash $10,300 ---
Notes Receivable --- $10,000
Interest Revenue --- $300

Note: Not available
1. Report

Title	Dr	Cr
Note Receivable	$1030	---
Accounts Receivable	---	$1030

Title	Dr	Cr
Note Receivable	$1000	---
Accounts Receivable	---	$1000

Title	Dr	Cr
Note Receivable	$1000	---
Sales	---	$1000

Title	Dr	Cr
Notes Receivable	$1020	---
Accounts Receivable	---	$1020

Title	Dr	Cr
Cash	$10,300	---
Notes Receivable	---	$10,300

Title	Dr	Cr
Cash	$10,000	---
Notes Receivable	---	$10,000

Title	Dr	Cr
Accounts Receivable	$10,300	---
Notes Receivable	---	$10,300

Title	Dr	Cr
Cash	$10,300	---
Notes Receivable	---	$10,000
Interest Revenue	---	$300

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Question: Remmers Company on June 15 sells merchandise on account to Tucci Co. for $1000 terms 2/10, n/30. On June 20, Tucci Co. returns merchandise worth $300 to Remmers Company. On June 24, payment is received from Tucci Co. for the balance due. What is the amount of cash received?

Question: Which of the following approaches for bad debts is best describe as a balance sheet method?

Question: Net sales for the month are $800,000 and bad debts are expected to be 1.5% of net sales. The company uses the percentage of sales basis.If the Allowance for Doubtful Accounts has a credit balance after adjustment?

Question: One of the following statements about promissory notes is incorrect. The incorrect statement is:

Question: Which of the following statement about VISA credit card sales is incorrect?

Question: Morgan Retailers accepted $50,000 of Citibank VISA credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to Sales of $50,000 and a debit(s) to:

Question: Bickner Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Streisand Co. The entry to record this transcation is as follows.

Question: Schlicht Co. holds Osgrove Inc's $10,000, 120-day, 9% note. The entry made by Schlicht Co. when the note is collected, assuming no interest has been previously accured, is:

Accounts receivable	$800,000
Allowance for doubtful accounts per books before adjustment	$50,000
Amounts expected to become unconnectable	$65,000