Acct. Ch. 9 Accounting for Receivables

A separate account that keeps track of each individual customer's account balances is called?

• Control Account
• Subsidiary Account
• Ledger
• Contra Asset

Keeps a single total of all Accounts Receivable...

• Accounts Payable
• Subsidiary Account
• Contra Account
• Control Account

Which is NOT an advantage of accepting third party credit cards?

• Paying a fee to the credit card company
• Higher Sales
• Convenience to Customer
• Get cash quicker

What is the "new" account we debit when we have to pay a fee to a third party credit card company?

• Sales Discount
• Cost of Goods Sold
• Credit Card Expense
• Bad Debts Expense

Which makes no attempt to predict bad debts expense?

• Direct Write Off Method
• Allowance Method

The write-off of a specific account does not affect net income.

• Direct write-off method
• Allowance method

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

• A short-term investment

• A note-receivable

• A note payable

• An account receivable

What kind of account is Allowance for Doubtful Accounts?

• Contra Revenue
• Contra Asset
• Debit
• Expense

What is another name for Uncollectibles?

• Uncommon
• Bad People
• Bad Debts
• Good Credit

A promissory note:

• Cannot be used in payment of an account receivable.

• Is a short-term investment for the maker.

• Is a liability to the payee.

• Is a written promise to pay a specified amount of money at a certain date.