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Receivables
Bad Debts
Credit Sales
Direct and Indirect
V for Valuation
100
This is the term for an amount due from another party.
What is a receivable.
100
when a company directly grants credit to its customers, this account is used as an expense account to record the uncollectible accounts during each period.
What is bad debt expense.
100
On January 1, ABC Co. sold $10,000 of merchandise with a cost of $9,000 on account. The entry to record the sale is....
What is A/R $10,000 Sales $10,000 COGS $9,000 M. Inv. $9,000
100
the ______ method charges bad debt expense when accounts are written off as uncollectible.
What is direct write off method.
100
_____ is the cost of borrowing money for the borrower.
What is interest
200
the journal entry to record a credit sale is a Debit to _____ and a credit to _____.
What is debit to A/R and credit to sales.
200
name the two methods for valuing accounts receivable.
What is direct write-off method and allowance method.
200
Warner Co. year end balance of A/R is $100,00, and the allowance for doubtful accounts has a balance of $1,000. Sales for the period were $1,000,000. If uncollectible Accounts Receivable is estimated to be 2% of sales - what is the year end adjusting entry?
What is Bad debt expense $20,000 Allowance for doubtful accts $20,000
200
under the _____ method, bad debt expenses are recorded with an adjustment at the end of each accounting period.
What is allowance method.
200
On July 1, Julia Brown promises to pay xyz, inc. $1,000 in 30 days at an interest rate of 10%. What interest will Julia owe on July 31?
What is 1,000 x 10% x 30/360 = $8
300
If Joe's T-shirt shop has $100 of credit card sales with a 4% fee and the cash is received immediately - the entry is.....
What is Cash $96 CC Expense $4 Sales $100
300
using the direct write-off method, ABC Co. determines that it can't collect $200 owed to it by customer Y. The entry is....
What is Bad debt expense $200 Accounts Receivable - Y $200
300
what term describes the balance sheet valuation of accounts receivable less the allowance for doubtful accounts?
What is realizable value
300
credit card expenses are usually recorded at the time of the (sale or cash collection?)
What is sale
300
Tom agrees to pay $10,000 to abc, inc. in 60 days at an interest rate of 10%. What interest will Tom pay when the note is due?
What is 10,000 x 10% x 60/360 = $167
400
Tom's T-Shirt company records $200 sales with a 4% fee, and cash is received immediately. The journal entry is....
What is Cash $192 CC Expense $8 Sales $200
400
the _____ uses both past and current receivable information to estimate the allowance amount.
What is aging of accounts receivable
400
Jan. 10th the $400 account of customer Y is determined to be uncollectible. The journal entry assuming the ALLOWANCE method is used is...
What is allowance for doubtful accounts $400 A/R - Y $400
400
if sales are $100,000 and bad debts are estimated at 1% of sales, bad debt expense should be....
What is $1,000
400
Albert co. promises to pay $10,000 to xyz company in 6 months at an interest rate of 12%. What is the total amount Albert will pay in 6 months?
What is $10,600
500
the _______ is a contra asset account used instead of reducing accounts receivable directly.
What is allowance for doubtful accounts.
500
the _____ principle is often applied to bad debts, because it requires that expenses be recorded in the same accounting period as sales.
What is MATCHING principle.
500
customer y pays his $500 balance in full after it has already been written off. Assuming the allowance method is used, the entry is....
What is A/R - Y $500 Allowance $500 Cash $500 A/R - Y $500
500
if sales are $100,000 and accounts receivable has a balance of $20,000 and bad debts are estimated to be 2% of accounts receivable, bad debt expense should be?
What is $400
500
a company can sell all or a portion of its receivables to finance company operations. The buyer of these receivables is called the _____
What is factor