ACC 291T Wk 4 – Apply: Connect Homework (2021.7 New)

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ACC 291T Wk 4 - Apply: Connect Homework (2021.7 New)
ACC 291T Wk 4 – Apply: Connect Homework (2021.7 New)
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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 60-day, 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 45-day, 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      24,750

Bad Debts Expense 25,215

Allowance for Doubtful Accounts      25,215

Bad Debts Expense 24,285

Allowance for Doubtful Accounts      24,285

Accounts Receivable      24,750

Bad Debts Expense 465

Sales            25,215

Accounts Receivable      25,215

Allowance for Doubtful Accounts      25,215