Select the one term in Column I that best fits the following definition: The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

Select the one term in Column I that best fits the following definition: The difference between an asset’s account balance and its related contra account.

Select the one term in Column I that best fits the following definition: The amount of accounts receivable a business expects to collect.

Select the one term in Column I that best fits the following definition: A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.

Select the one term in Column I that best fits the following definition: A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.

Select the one term in Column I that best fits the following definition: Analyzing accounts receivable according to when they are due.

Select the one term in Column I that best fits the following definition: Canceling the balance of a customer account because the customer does not pay.

Select the one term in Column I that best fits the following definition: A written and signed promise to pay a sum of money at a specified time.

Select the one term in Column I that best fits the following definition: A promissory note signed by a business and given to a creditor.

Select the one term in Column I that best fits the following definition: A promissory note that a business accepts from a customer.

Select the one term in Column I that best fits the following definition: The person or business that signs a note and thus promises to make payment.

Select the one term in Column I that best fits the following definition: The person or business to whom the amount of a note is payable.

Select the one term in Column I that best fits the following definition: The original amount of a note, sometimes referred to as the face amount.

Select the one term in Column I that best fits the following definition: The percentage of the principal that is due for the use of the funds secured by a note.

Select the one term in Column I that best fits the following definition: The date on which the principal of a note is due to be repaid.

Select the one term in Column I that best fits the following definition: The length of time from the signing date of a note to the maturity date.

Select the one term in Column I that best fits the following definition: The amount that is due on the maturity date of a note.

Select the one term in Column I that best fits the following definition: The interest earned on money loaned.

Select the one term in Column I that best fits the following definition: A note that is not paid when due.

Which of the following is the correct journal entry for the transaction on December 3: Wrote off Langston Corporation’s past-due account as uncollectible, $645.75. M203?

Post each entry to the customer accounts in the accounts receivable ledger on the following page.

Continue to use page 12 of the general journal shown on page 154 of this test. What is the December 31 adjusting entry for estimated uncollectible accounts expense for the year, if the company uses the aging of accounts receivable to estimate that $4,500.00 of outstanding accounts receivable will become uncollectible and the Allowance for Uncollectible Accounts balance on the December 31 unadjusted trial balance is a $321.53 credit?

Based on the Accounts Receivable Ledger, what is the debit balance for Farris Company as of May 2?

According to the Accounts Receivable Ledger, what is the debit balance for Langston Corporation as of March 15?

The allowance method of accounting for uncollectible accounts does not comply with generally accepted accounting principles.

When a customer account is written off under the allowance method, the book value of accounts receivable decreases.

A note provides a business with legal evidence of a debt in the event it becomes necessary to go to court to collect.

Total assets are reduced when a business accepts a note receivable from a customer needing an extension of time to pay an account receivable.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 5. The book value of accounts receivable must be a reasonable and unbiased estimate of the money the business expects to collect in the future.

The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

The expense of an uncollectible account should be recorded in the accounting period that the account becomes uncollectible.

The account Allowance for Uncollectible Accounts has a natural credit balance.

A business usually knows at the end of the fiscal year which customer accounts will become uncollectible.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 10. The account Allowance for Uncollectible Accounts is reported on the income statement.

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.

The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

A business having a $$400.00 debit balance in Allowance for Uncollectible Accounts and estimating its uncollectible accounts using accounts receivable aging to be$$ 5,000.00 would record a $5,400.00 credit to Allowance for Uncollectible Accounts.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 14. Interest rates are stated as a percentage of the principal.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 15. Interest income is classified as revenue from normal operations.

When using the allowance method, writing off an uncollectible account does not change the net realizable value of accounts receivable.

The direct write-off method complies with generally accepted accounting principles.

The direct write-off method matches the expense of uncollectible accounts to the revenue that is earned in the same period.

A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.

A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.

Analyzing accounts receivable according to when they are due.

The amount of accounts receivable a business expects to collect.

The person or business to whom the amount of a note is payable.

The original amount of a note, sometimes referred to as the face amount.

The person or business that signs a note and thus promises to make payment.

Crediting the estimated value of uncollectible accounts to a contra account.

The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

The difference between an asset’s account balance and its related contra account.

The amount that is due on the maturity date of a note.

Directions: Select the one term in Column I that best fits each definition in Column II. 12. The interest earned on money loaned.

The date on which the principal of a note is due to be repaid.

Directions: Select the one term in Column I that best fits each definition in Column II. 14. A note that is not paid when due.

Directions: Select the one term in Column I that best fits each definition in Column II. 15. A promissory note signed by a business and given to a creditor.

A promissory note that a business accepts from a customer.

The percentage of the principal that is due for the use of the funds secured by a note.

Directions: Select the one term in Column I that best fits each definition in Column II. 18. A written and signed promise to pay a sum of money at a specified time.

The length of time from the signing date of a note to the maturity date.

Canceling the balance of a customer account because the customer does not pay.

Which of the following is the correct journal entry for the transaction on December 6: Wrote off Fisher Corporation’s past-due account as uncollectible, $2,410.16. M122?

Post each entry to the customer accounts in the accounts receivable ledger on the following page.

Use page 14 of the general journal shown on page 159. What is the amount of the December 31 adjusting entry for estimated uncollectible accounts expense for the year, if the company estimates that $3,200.00 of outstanding accounts receivable will become uncollectible and the Allowance for Uncollectible Accounts balance on the December 31 unadjusted trial balance is a $248.18 credit?

What is the balance for Jordan Company as of December 1 in the Accounts Receivable Ledger?

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 1. The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

The expense of an uncollectible account should be recorded in the accounting period that the account becomes uncollectible.

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 4. The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

A business having a $$400.00 debit balance in Allowance for Uncollectible Accounts and estimating its uncollectible accounts using accounts receivable aging to be$$ 5,000.00 would record a $5,400.00 credit to Allowance for Uncollectible Accounts.

Interest rates are stated as a percentage of the principal.

The allowance method of accounting for uncollectible accounts does not comply with generally accepted accounting principles.

A business usually knows at the end of the fiscal year which customer accounts will become uncollectible.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 9. The account Allowance for Uncollectible Accounts is reported on the income statement.

Total assets are reduced when a business accepts a note receivable from a customer needing an extension of time to pay an account receivable.

The book value of accounts receivable must be a reasonable and unbiased estimate of the money the business expects to collect in the future.

When a customer account is written off under the allowance method, the book value of accounts receivable decreases.

When using the allowance method, writing off an uncollectible account does not change the net realizable value of accounts receivable.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 14. The direct write-off method complies with generally accepted accounting principles.

Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 15. The direct write-off method matches the expense of uncollectible accounts to the revenue that is earned in the same period.

A note provides the business with legal evidence of the debt should it be necessary to go to court to collect.

Interest income is classified as revenue from normal operations.

The account Allowance for Uncollectible Accounts has a natural credit balance.