Question :
101. Teller purchased merchandise from TechCom October 17 of the current : 1225947
101. Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller’s $4,800, 90-day, 10% note. If the note is dishonored, what entry should TechCom make on January 15 of the next year?
A. Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920.
B. Debit Cash $4,920; credit Notes Receivable $4,920.
C. Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20, credit Notes Receivable $4,800.
D. Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800.
E. Debit Accounts Receivable $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800.
102. MixRecording Studios purchased $7,800 in electronic components from TechCom. MixRecording Studios signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note?
A. $130
B. $7,800
C. $7,930
D. $8,050
E. $8,130
103. The Allowance for Doubtful Accounts:
A. Is a contra asset account.
B. Is used instead of reducing accounts receivable directly.
C. Is debited when uncollectible accounts are written off.
D. All of these.
E. Is credited when bad debts expense is estimated and recorded.
104. Hankco accepts all major bank credit cards, including Omni Bank’s, which assesses a 4% charge on sales for using its card. On June 28, Hankco had $3,500 in Omni Card credit sales. What entry should Hankco make on June 28 to record the deposit?
A. Debit Cash $3,500; credit Sales $3,500.
B. Debit Accounts Receivable $3,500; credit Sales $3,500.
C. Debit Cash $3,640; credit Credit Card Expense $140; credit Sales $3,500.
D. Debit Cash $3,360; debit Credit Card Expense $140; credit Sales $3,500.
E. Debit Accounts Receivable $3,360; debit Credit Card Expense $140; credit Sales $3,500.
105. Calco accepts all major bank credit cards, including First Bank’s, which assesses a 3.5% charge on sales for using its card. On May 25, Calco had $4,800 in First Bank Card credit sales. What entry should Calco make on May 25 to record the deposit?
A. Debit Accounts Receivable $4,800; credit Sales $4,800.
B. Debit Cash $4,632; debit Credit Card Expense $168; credit Sales $4,800.
C. Debit Cash $4,800; credit Sales $4,800.
D. Debit Cash $4,968; credit Credit Card Expense $168; credit Sales $4,800.
E. Debit Accounts Receivable $4,632; debit Credit Card Expense $168; credit Sales $4,800.
106. Darby uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
A. $4,845
B. $4,180
C. $3,515
D. $3,700
E. $3,850
107. Darby uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be .5% of sales, what is the amount of the bad debts expense adjusting entry?
A. $4,625
B. $3,960
C. $5,290
D. $4,750
E. $4,825
108. On August 9, Pierce Company receives a $8,500, 90-day, 8% note from customer Eric Simms as payment on his account. Compute the maturity date for the note.
A. October 8
B. October 7
C. November 8
D. November 7
E. November 6
109. On August 9, Pierce Company receives a $8,500, 90-day, 8% note from customer Eric Simms as payment on his account. Compute the amount due at maturity for the note.
A. $8,628
B. $8,192
C. $8,613
D. $8,500
E. $8,670
110. On August 9, Pierce Company receives a $8,500, 90-day, 8% note from customer Eric Simms as payment on his account. What entry should be made on August 9 to record receipt of the note?
A. Debit Accounts Receivable $8,500; credit Sales $8,500.
B. Debit Notes Receivable $8,670; credit Sales $8,670.
C. Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.
D. Debit Notes Receivable $8,500; credit Sales $8,500.
E. Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.
