ACC/291T Principles Of Accounting Ii The Latest Version A+ Study Guide **********************************************
ACC 291T Entire Course Link http://www.onlinehelp123.com/acc-291 ********************************************** ACC 291T Wk 4 Apply: Connect Homework (2021.7 New) Valley Spa purchased $8,200 in plumbing components from Tubman Co. Valley Spa Studios signed a 45-day, 8% promissory note for $8,200. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.) Multiple Choice • $8,282 • $82 • $8,200 • $8,530 • $8,450
A company borrowed $12,000 by signing a 120-day promissory note at 15%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice • $300.00 • $600.00 • $40.00 • $1,800.00
• $900.00
Jasper makes a $82,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be: Multiple Choice • Debit Notes Receivable $82,000; credit Sales $82,000. • Debit Accounts Receivable $82,000; credit Notes Receivable $82,000. • Debit Notes Receivable for $82,000; credit Cash $82,000. • Debit Cash $82,000; credit Notes Receivable for $82,000. • Debit Notes Payable $82,000; credit Accounts Payable $82,000.
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable $ 359,000 debit Allowance for uncollectible accounts 540 debit Net Sales 804,000 credit ________________________________________ All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice • $1,614 • $2,694 • $5,364 • $4,824 • $4,284
Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60day, 10% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.) Multiple Choice • Debit Bad Debt Expense $10,370; credit Accounts Receivable $10,370. • Debit Bad Debt Expense $10,200; credit Notes Receivable $10,200. • Debit Accounts Receivable $10,370; debit Bad Debt Expense $170; credit Notes Receivable $10,200. • Debit Accounts Receivable—Valley Spa $10,200; credit Notes Receivable $10,200. • Debit Accounts Receivable—Valley Spa $10,370, credit Interest Revenue $170; credit Notes Receivable $10,200.
On July 9, Mifflin Company receives a $9,500, 90-day, 12% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note? Multiple Choice • Debit Accounts Receivable $9,500; credit Sales $9,500. • Debit Notes Receivable $9,877; credit Interest Revenue $377; credit Accounts Receivable $9,500. • Debit Notes Receivable $9,785; credit Sales $9,785. • Debit Notes Receivable $9,500; credit Sales $9,500. • Debit Notes Receivable $9,500; credit Accounts Receivable $9,500.
Giorgio Italian Market bought $8,800 worth of merchandise from Food Suppliers and signed a 45day, 7% promissory note for the $8,800. Food Supplier's journal entry to record the sales transaction is: Multiple Choice • Debit Accounts Receivable $8,877; credit Sales $8,877. • Debit Notes Receivable $8,800; debit Interest Receivable $77; credit Sales $8,877. • Debit Notes Receivable $8,800; credit Sales $8,800. •
Debit Notes Receivable $8,877; credit Sales $8,877. • Debit Accounts Receivable $8,800; credit Sales $8,800.
A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $800 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: Multiple Choice • None of these is correct. • $4,600 • $6,200 • $5,400 • $800
A company had net sales of $510,000, total sales of $660,000, and an average accounts receivable of $84,500. Its accounts receivable turnover equals: Multiple Choice • 0.17 • 0.13 • 6.04 • 7.81 • 0.77
At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice
• Bad Debts Expense 24,750 Allowance for Doubtful Accounts • Bad Debts Expense 25,215 Allowance for Doubtful Accounts • Bad Debts Expense 24,285 Allowance for Doubtful Accounts • Accounts Receivable 24,750 Bad Debts Expense 465 Sales 25,215 • Accounts Receivable 25,215 Allowance for Doubtful Accounts
24,750
25,215
24,285
25,215