Question 11 pts Interest is usually associated withaccounts receivablenotes receivabledoubtful accountsbad debtsFlag this QuestionQuestion 21 ptsTrade accounts receivable are valued and reported on the balance sheetin the investment section.at gross amounts less sales returns and allowances.at net realizable value.at gross amount plus allowance for doubtful accounts.Flag this QuestionQuestion 31 ptsThe existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in thedirect write-off method.percentage of receivables methodpercentage of sales methodboth the percentage of receivable and percentage of sales methodsFlag this QuestionQuestion 41 ptsWhen the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited whena sale is made.an account becomes bad and is written off.management estimates the amount of uncollectibles.a customer’s account becomes past-due.Flag this QuestionQuestion 51 ptsAn aging of a company’s accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require adebit to Bad Debts Expense for $9,000.debit to Allowance for Doubtful Accounts for $7,900.debit to Bad Debts Expense for $7,900.credit to Allowance for Doubtful Accounts for $9,000Flag this QuestionQuestion 61 ptsHahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $500,000 and credit sales are $1,000,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?debit bad debt expense and credit accounts receivable for $5,000debit accounts receivable and credit bad debt expense for $15,000debit bad debt expense and credit accounts receivable for $15,000debit bad debt expense and credit allowance for doubtful for $10,000Flag this QuestionQuestion 71 ptsA 60-day note receivable dated June 14 has a maturity date ofAugust 10August 11August 12August 13Flag this QuestionQuestion 81 ptsWhen a note receivable is dishonored,interest revenue is never recorded.bad debts expense is recorded.the maturity value of the note is written off.Accounts Receivable is debited if eventual collection is expected.Flag this QuestionQuestion 91 ptsRodgers Company lends Lanier Company $10,000 on April 1, accepting a four-month, 6% interest note. Rodgers Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?debit interest expense, credit interest payable for $200debit interest expense, credit interest payable for $50debit interest receivable, credit interest revenue for $200debit interest receivable, credit interest revenue for $50Flag this QuestionQuestion 101 ptsWhen a note receivable is honored, Cash is debited for the note’snet realizable value.maturity value.gross realizable value.face value.
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