College Acct 1- Chapters 7-9 Review

Front

Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid?

Back

Debit Cash $4,920; Credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800

Front

Craigmont 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 bad debts expense adjusting entry?

Back

$3,515

Front

A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (USE 360 DAYS A YEAR.)

Back

$450

Front

The maturity date of a note receivable:

Back

Is the day the note is due to be repaid

Front

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:

Back

Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a Credit to Accounts Receivable of $45,000

Front

Net Accounts Receivable is:

Back

Gross Accounts Receivable - Allowance for Doubtful Accounts

Front

Allowance for Doubtful Accounts is a contra-account paired with: Accounts Receivable, Cash, Net Income, Expenses, Revenue

Back

Accounts Receivable

Front

Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record this transaction?

Back

Debit Cash $71,250; Debit Factoring Fee Expense $3,750; Credit Accounts Receivable $75,000

Front

Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on December 31, to record the accrued interest on the note?

Back

Debit Interest Receivable $100; Credit Interest Revenue $100

Front

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

Back

$112.50