What is the Direct Write Off Method and Allowance Method
100
What is the account used to write off an uncollectible account under the allowance method
What is Allowance for Doubtful Accounts
100
What is the formula for calculating simple interest?
What is PRT?
100
This measures how frequently during the year the accounts receivable are being converted to cash.
What is Accounts receivable turnover?
200
Classify the account "Notes Receivable"
What is an Asset?
200
Journal entry to write off an account under the direct write off method
What is dr: Bad Debt Expense cr: Accts Receivable
200
Classify the account "Allowance for Doubtful Accts"
What is a contra asset
200
Find the due date for a note dated May 2, terms 90 days.
What is July 31?
200
An estimate of the length of time the accounts receivable have been outstanding.
What is number of days' sales in receivables
300
Direct Write-Off Method violates this GAAP
What is the matching principle?
300
Under the allowance method, which method requires a person to look at the balance in the allowance account before making an adjusting entry
What is the aging of receivables?
300
The amount that is due at the maturity or due date of a note.
What is maturity value?
400
The entry to reinstate and collect an account already written off.
What is DR: Accts Receivable CR: Bad Debt Expense
DR: Cash CR: Accts Receivable
400
If the allowance account had a debit balance of $200 and the net sales were $100,000 and the percent of sales was 8%, how much would be adjusted in an adjusting entry
What is $8,000
400
What is the entry for a receipt of a note in payment of an account?
What is DR: notes receivable CR: Accts. Receivable
400
Selling receivables is known as
What is factoring?
500
An example of a business that uses the direct write off method
What is a Restaurant, convenience store or small retail store
500
What is the entry to write off an account under the allowance method?
What is DR: allowance for doubtful accounts and CR: Accts Receivable
500
What is the entry for a dishonored note plus interest?