College Acct 1- Chapter 7

Front

What entry should Uniform Supply make on January 30 of the next year when the note is paid? Synergy Corp. accepted a $2,400, 90-day, 10% note from Johnson Inc. on November 1.

Back

Debit Cash $2,460; Credit Interest Revenue $20; credit Interest Receivable $40; credit Notes Receivable $2,400

Front

Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is unable to pay, but Majesty intends to continue collection efforts. What entry should Majesty record on the maturity date for this dishonored note? Options: Debit Accounts Receivable $7,200; credit Notes Receivable $7,200, Debit Accounts Receivable $7,056; debit Interest Revenue $144; credit Notes Receivable $7,200, Debit Bad Debt Expense $7,344; credit Notes Receivable $7,344, Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200, Debit Accounts Receivable $7,200; credit Allowance for Doubtful Accounts $7,200

Back

Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200

Front

Bloom Marketing uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $98,500, allowance for doubtful accounts of $425 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 5% of accounts receivable, what is the amount of bad debts expense adjusting entry?

Back

$4,500

Front

Office Tile bought $2,500 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $2,500. Food Supplier's journal entry to record the sales transaction is:

Back

Debit Notes Receivable $2,500; credit Sales $2,500

Front

A company borrowed $100,000 by signing a 90-day promissory note at 8%. The total interest due on the maturity date is: (USE 360 DAYS A YEAR.)

Back

$2,000

Front

When does a note receivable become due? Options: On the date of the credit sale, On the date of the first payment, On the last day of the month, On the maturity date, On the date the note was signed

Back

On the maturity date

Front

Smart Phone Repair factored $35,000 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 $33,600, a debit to Factoring Fee Expense of $1,400, and a Credit to Accounts Receivable of $35,000

Front

Fix Guru bought $4,000 worth of merchandise from LZ Inc. and signed a 90-day, 6% promissory note for the $4,000. LZ Inc's journal entry to record the collection on the maturity date is:

Back

Debit Cash $4,060; Credit Interest Revenue $60; credit Notes Receivable $4,000

Front

What is the journal entry to record the collection for Kenai Company after selling $600 of merchandise with a 3% service charge from National Bank? Options: Debit Accounts Receivable $582; Debit Credit Card Expense $18; Credit Sales $600, Debit Cash $582; Debit Credit Card Expense $18; Credit Sales $600, Debit Cash $582; Credit Sales $582, Debit Cash $618; Credit Accounts Receivable $618, Debit Cash $618; Credit Credit Card Expense $18; Credit Sales $600

Back

Debit Cash $582; Debit Credit Card Expense $18; Credit Sales $600

Front

Beep Sports borrowed $8,000 by signing a 180-day promissory note at 8%. The maturity value of the note is: (Use 360 days a year.)

Back

$8,320