Receivables MCQs

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Which is the appropriate way to disclose the credit card expense on the income statement?






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When a firm writes off a bad debt under the allowance method of accounting for bad debts






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When a firm collects (recovers) an account receivable that was previously written off under the allowance method of accounting for bad debts,






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The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment, of $450. The bad debts are estimated at 3% of $650,000...






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The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment of $500. The bad debts are estimated at 7% of $60,000 o...






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Which accounting principle or concept permits the direct write-off method of accounting for bad debts?






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A firm using the allowance method of accounting for bad debts expense has recovered a bad debt that was written off one year ago. The appropriate jour...






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On July 18, a firm received from one of its customers, Algo Rythym, a written promise to pay the firm $1,200, at 12% interest, on September 17, for me...






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A 90-day, 11%, promissory note that is dated June 13 will have a maturity date of






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The interest on a $1,500, 15%, 4-month note is






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Which of the following is not true with regard to a $3,000, 14%, 90-day note that is dishonored?






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A $10,000, 12%, 60-day note receivable is received on January 12. The note is discounted at 12% on January 18. The maturity value of the note is






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A $10,000, 12%, 60-day note receivable is received on January 12. The note is discounted at 12% on January 18. The proceeds of the note will be