FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Receivables

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Essay

Review LaterAdd Note

Review Later

If a 60-day note receivable is dated September 22, what is the due date of the note?

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

The days' sales uncollected ratio:

A) Is calculated by dividing accounts receivable by sales.
B) Is used to evaluate the liquidity of receivables.
C) Measures a company's debt to income.
D) Measures a company's ability to pay its bills on time.
E) Is calculated by dividing sales by accounts receivable.

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Dell had net sales of $8,739 million and average accounts receivable of $864 million.Its accounts receivable turnover was:

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying the answer by 365.

Assume that at March 14, 2019, it was determined that a balance of $7,000needed to be written off as uncollectible. Provide the journal entry for the write-off.

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

Electron borrowed $75,000 from TechCom by signing a promissory note and pledging$85,000 in accounts receivable as security. TechCom's entry to record the transaction should include a:

Selected financial statement data for California Ltd, at its December 31 year end is below: California's credit terms are net 30 days. A 2% discount can be taken if the bill is paid within 10 days from the invoice date.In 2018, California collects its accounts receivable:

Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year.Dell's turnover rate was 6.8 for this year and 7 for last year. This means that:

Interest on $8,400 at 7% for 60 days is:

A company must have less than 30 days' sales uncollected in order to be adequately liquid.

Assuming that Peter Corporation has a December 31 year-end, prepare the adjusting entry at December 31, 2018 for doubtful accounts.

A payee of a note usually honours a note and pays it in full.

The formula for computing interest on a note receivable is principal multiplied by interest rate multiplied by time.

Explain how the materiality principle can be used to justify the direct write-off method.

Accounts receivable turnover shows how often a company converts its average accounts receivable balance into cash during the period.

Accounts receivable turnover is calculated by:

Describe accounts receivable and how they are recorded into the accounting system.

What is the purpose of the days' sales uncollected ratio?

On December 31 of the current year, Kellan CompanyAbout 1.5% of credit sales.(b)About 5% of accounts receivable.