Accounting for accounts receivable
Fill-in-the-blanks quiz

By: Rashid Javed | Updated on: May 5th, 2018

Directions!

Read the whole text carefully and think the correct word that should fill in the blank space(s) and then confirm your answer by pressing the 'see answer' button. Don't press the 'see answer' button before reading the question text.

If you are unable to solve these fill-in-the-blank questions, read accounting for accounts receivable chapter from explanations section of our website.

Question: 1
When goods are sold on credit, account is debited and account is credited.
Question: 2
is allowed to credit customers to encourage them to make prompt payments.
Question: 3
Cash discount is also known as .
Question: 4
The payment terms 2/15, n/30 means that a discount would be allowed if the payment is made within 15 days. Otherwise, full amount is payable within 30 days.
Question: 5
When cash is collected from credit customers, account is debited and account is credited.
Question: 6
The sales discount account is a revenue account.
Question: 7
The sales discount is deducted from to arrive at net sales.
Question: 8
Sales discount forfeited is reported as on the income statement.
Question: 9
Accounts receivable that cannot be collected because of bankruptcy or another reason are called .
Question: 10
Face value of accounts receivable - = Net realizable value of accounts receivable.
Question: 11
When adjusting entry to recognize uncollectible accounts expense is made under allowance method, account is debited and account is credited.
Question: 12
The uncollectible accounts expense account is closed to account.
Question: 13
The account is a contra asset account that reduces the gross amount of accounts receivable to their value.
Question: 14
When a receivable is written off under allowance method, account is debited and account is credited.
Question: 15
The Naxum Company uses aging method to estimate the allowance for doubtful accounts. On December 31, 2018, the existing balance in allowance for doubtful accounts account is $20,000 and the required balance in this account is $22,000. The adjusting entry on December 31, 2018 would be made in the amount of .
Question: 16
The Noran Company estimates that 2% of its total credit sales will prove to be uncollectible. The existing balance in allowance for doubtful accounts account is $4,000. If the credit sales for the year 2018 are $50,000, the adjusting entry on December 31, 2018 would be made for the amount of .
Question: 17
A promissory note is written by a in favor of a creditor.
Question: 18
Factoring means selling to a financial instituion at a discount.
Question: 19
The institution to whom receivables are sold is known as .
Question: 20
When accounts receivable are factored without recourse, the bears the loss resulting from bad debts.
Question: 21
In a factoring , the seller guarantees the collection of accounts receivable.
Question: 22
When accounts receivable are converted into notes receivable, account is debited and account is credited.
A D V E R T I S E M E N T
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Accounting for accounts receivable
Fill-in-the-blanks quiz

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