Question : 111. Bright Co. holds Park Co.’s $40,000, 120 day, 9% note. : 1247202

111. Bright Co. holds Park Co.’s $40,000, 120 day, 9% note.  The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is: 
A. Cash                                                     40,000
           Notes Receivable                                              40,000
B. Accounts Receivable                              41,200
           Notes Receivable                                              40,000
           Interest Revenue                                                   1,200
C. Cash                                                       41,200
           Notes Receivable                                              40,000
           Interest Revenue                                                    1,200
D. Accounts Receivable                                 41,200
           Notes Revenue                                                   40,000
           Interest Revenue                                                      1,200

112. Receivables are usually listed on the balance sheet after Cash in what order? 
A. Accounts Receivable, Notes Receivable, Interest Receivable
B. Interest Receivable, Notes Receivable, Accounts Receivable
C. Notes Receivable, Interest Receivable, Accounts Receivable
D. Notes Receivable, Accounts Receivable, Interest Receivable

113. Receivables are usually listed in order  
A. of the due date
B. of the size
C. alphabetically
D. of liquidity

114. Accounts Receivable Turnover measures  
A. how frequently during the year the accounts receivable are converted to cash
B. the number of days outstanding
C. the fair market value of accounts receivable
D. the efficiency of the accounts payable function

115. The number of days’ sales in receivables  
A. is an estimate of the length of time the receivables have been outstanding
B. measures the number of times the receivables turn over each year
C. is Net Credit Sales divided by Average Receivables
D. is not meaningful and therefore is not used

116. In reference to a promissory note, another word for “discount” is  
A. maturity
B. sale
C. purchase
D. interest

117. The amount received by the endorser after discounting a note receivable at the bank is called the  
A. proceeds
B. maturity value
C. face value
D. realizable value

118. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  If the note is discounted on May 21 at 15%, the proceeds are  
A. $170
B. $9,830
C. $10,000
D. $10,030

119. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  If the note is discounted on June 10 at 15%, the proceeds are  
A. $10,115
B. $10,200
C. $10,000
D. $10,030

120. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  If the note is discounted on May 21 at 15%, the amount of interest revenue or expense to be recorded by the payee of the note on May 21 is  
A. $30 interest expense
B. $30 interest revenue
C. $170 interest revenue
D. $170 interest expense