Question :
91. The amount due the date of maturity for a $6,000, : 1256918
91. The amount due on the date of maturity for a $6,000, 60-day, 8%, note receivable is:
A. $6,000
B. $6,480
C. $5,520
D. $6,080
E. $5,920
92. Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom’s journal entry to record the sales portion of the transaction is:
A.
Accounts Receivable
5,000
Sales
5,000
B.
Notes Receivable
5,000
Sales
5,000
C.
Accounts Receivable
5,125
Sales
5,125
D.
Notes Receivable
5,125
Sales
5,125
E.
Notes Receivable
5,000
Interest Receivable
125
Sales
5,125
93. MixRecording Studios purchased $7,800 in electronic components from TechCom. MixRecording Studios signed a 60-day, 10% promissory note for $7,800. TechCom’s journal entry to record the sales portion of the transaction is:
A.
Accounts Receivable
7,800
Sales
7,800
B.
Accounts Receivable
7,930
Sales
7,930
C.
Notes Receivable
7,800
Sales
7,800
D.
Notes Receivable
7,930
Sales
7,930
E.
Notes Receivable
7,800
Interest Receivable
130
Sales
7,930
94. Wallah Company agreed to accept $5,000 in cash along with an $8,000, 90-day, 13.5% note from customer Judith Klemper to settle her $13,000 past-due account. How should Wallah record this transaction?
A.
Accounts Receivable – J. Klemper
13,000
Note Receivable
8,000
Cash
5,000
B.
Note Receivable
8,000
Sales
8,000
C.
Cash
5,000
Note Receivable
8,000
Sales
13,000
D.
Cash
5,000
Note Receivable
8,000
Account Receivable – J. Klemper
13,000
E.
Sales
13,000
Note Receivable
8,000
Cash
5,000
95. When the maker of a note honors a note this indicates that the note is:
A. Signed
B. Paid in full
C. Guaranteed
D. Notarized
E. Cosigned
96. Failure by a promissory note’s maker to pay the amount due at maturity is known as:
A. Protesting a note
B. Closing a note
C. Dishonoring a note
D. Discounting a note
E. Depreciating a note
97. Teller, a calendar year company, purchased merchandise from TechCom on October 17 of the current year. TechCom accepted Teller’s $4,800, 90-day, 10% note as payment. What entry should TechCom make on January 15 of the next year when the note is paid, assuming an adjusting entry for interest was made for interest on December 31?
A.
Notes Receivable
4,800
Interest Receivable
120
Sales
4,920
B.
Cash
4,920
Notes Receivable
4,920
C.
Cash
4,920
Interest Revenue
100
Interest Receivable
20
Notes Receivable
4,800
D.
Cash
4,920
Interest Revenue
20
Interest Receivable
100
Notes Receivable
4,800
E.
Cash
4,920
Interest Revenue
120
Notes Receivable
4,800
98. Temper Company has credit sales of $3.10 million for year 2013. Temper estimates that .9% of the credit sales will not be collected. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222. Temper prepares a schedule of its December 31, 2013, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:
December 31, 2013Accounts Receivable
Age of Accounts
Receivable
Expected Percent Uncollectible
$620,000
Not yet due
1.05
%
248,000
1 to 30 days past due
1.80
49,600
31 to 60 days past due
6.30
24,800
61 to 90 days past due
31.75
4,960
Over 90 days past due
66.00
Assuming the company uses the aging of Accounts Receivable method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $25,246.40
B. $27,468.40
C. $23,024.40
D. $27,900.00
E. $24,420.40
99. Temper Company has credit sales of $3.10 million for year 2013. Temper estimates that .9% of the credit sales will not be collected. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222. Assuming the company uses the percent of sales method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $25,246.40
B. $27,468.40
C. $23,024.40
D. $27,900.00
E. $24,420.40
100. Temper Company has credit sales of $3.10 million for year 2013. Accounts Receivable total $947,360 and the company estimates that 2% of accounts receivable will remain uncollectible. Historically, .9% of sales have been uncollectible. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted debit balance of $2,575. Temper prepareda schedule of its December 31, 2013, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:
December 31, 2013Accounts Receivable
Age of Accounts
Receivable
Expected Percent Uncollectible
$620,000
Not yet due
1.05
%
248,000
1 to 30 days past due
1.80
49,600
31 to 60 days past due
6.30
24,800
61 to 90 days past due
31.75
4,960
Over 90 days past due
66.00
Assuming the company uses the percent of accounts receivable method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $18,947.20
B. $16,372.20
C. $23,024.40
D. $27,900.00
E. $21,522.20
