Accounting for accounts receivable

Multiple choice questions quiz

The journal entry for recording accounts receivable is:

The payment terms 2/10, n/30 tell us that:

The cash discount (also known as purchase discount or sale discount) is given to customers for:

The accounts receivable that cannot be collected because of their bankruptcy or another reason are termed as:

Under allowance method, the journal entry to record uncollectible accounts expense is:

The Fortune Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information:

• Accounts receivable on December 31, 2017: $380,000
• Required balance in Allowance for Doubtful Accounts account on December 31, 2017: $3,000
• Existing balance in Allowance for Doubtful Accounts account on December 31, 2017: $2,500

The journal entry required to recognize uncollectible accounts expense on December 31, 2017 is:

Allowance for doubtful accounts is an example of:

Under allowance method, the journal entry to write off an uncollectible account is:

Under direct write off method, the journal entry to recognize uncollectible accounts expense is:

Under allowance method, the correct journal entry to reinstate a previously written off account is:

The correct journal entry for collection of accounts receivable is:

A promissory note is written by:

In a promissory note, the debtor makes:

Which of the following journal entries converts an account receivable into a note receivable?

Accounts receivable are reported in the balance sheet:

The John & Stewart Company provides you the following selected information:

• Balance in accounts receivable account on December 31, 2017: $70,000
• Balance in allowance for doubtful accounts account on December 31, 2017 after making adjusting entry for uncollectible accounts expense: $2,000
• Uncollectible accounts expense for the year 2017: $500

On the basis of above information, the net realizable value of accounts receivable to be shown in the balance sheet as at December 31, 2017 would be:

The US Company uses sales method to estimate its credit losses. It provides you the following selected information:

• Total credit sales for the year 2017: $800,000
• Estimated uncollectible credit sales for the year 2017: 1%
• Balance in allowance for doubtful accounts account on December 31, 2017 before making adjusting entry for uncollectible accounts expense: $5,000

The uncollectible accounts expense to be reported in the income statement for the year 2017 is:

The main purpose of factoring accounts receivable is:

In a factoring with recourse, the loss resulting from bad debts is born by:

In a factoring without recourse transaction, the loss resulting from bad debts is born by: