For

Answers

Scoring

     0.    The party purchasing a company's receivables is called a(n) ...................

factor

0. ____

     1.    Allowance for Doubtful Accounts has a credit balance of $3,000 at
the end of the year, before adjustments.  Sales for the year amounted
to $1,950,000, and sales returns and allowances amounted to $50,000.
If uncollectible accounts expense is estimated at 1% of net sales,
the amount of the appropriate adjusting entry will be ..................................

      $

1. ____

     2.    If, instead of a percentage of net sales, the adjusting entry in Question 1
is based on an analysis of receivables that indicates doubtful accounts
of $10,500, the amount of the adjustment will be ........................................

      $

2. ____

     3.    Allowance for Doubtful Accounts has a debit balance of $500 at the end
of the year, before adjustment.  If an analysis of receivables indicates
doubtful accounts of $9,000, the amount of the appropriate adjusting
entry will be ..........................................................................................................

      $

3. ____

     4.    The maturity value of a $75,000, 180-day, 4% note receivable is ............

      $

4. ____

     5.    In writing off an uncollectible account by the direct write-off method,
the account credited is .......................................................................................

      $

5. ____

     6.    At the end of the fiscal year, after the accounts are closed, Accounts
Receivable has a balance of $900,000, and Allowance for Doubtful
Accounts has a balance of $75,000.  What is the expected net realizable
value of the receivables? ..................................................................................

      $

6. ____

     7.    Where on the balance sheet would receivables that are expected to be realized in cash within one year be reported? ..............................................

7. ____

     8.    Allowance for Doubtful Accounts is listed on the appropriate financial
statement in the subsection titled .....................................................................

8. ____

     9.    Notes receivable expected to be collected in 1 ½ years are listed on the
financial statements in the subsection titled ..................................................

9. ____

   10.    If the receivable turnover is 10, how many days are the receivables
outstanding, on the average? ...........................................................................

        10. ____

For

For

TRANSACTIONS

Debit

Scoring

Credit

Scoring

         0.   Received the final payment on a promissory note .....................................

D

0. ____

K,F

0. ____

     1-2.   Recorded the adjusting entry for estimated uncollectible accounts
at the end of the fiscal period, based upon the allowance method ........

1. ____

2. ____

     3-4.   Wrote off the account of the bankrupt debtor (included in Allowance for Doubtful Accounts provision had been made in Question 1-2) ...............

3. ____

4. ____

     5-8.   Recovered the bad debt written off in Question 3-4 ...................................

5. ____

6. ____

7. ____

8. ____

   9-10.   Replaced a customer's account receivable with a note receivable ........

9. ____

        10. ____