What entry should be made to record the receipt of payment

Assignment Help Accounting Basics

Reference no: EM13900210

1. The maker of a $6,000, 10%, 120-day note receivable failed to pay the note on the due date of April 30. What accounts should be debited and credited by the payee to record the dishonored note receivable?

2. The note receivable dishonored in Question 1 is paid on May 30 by the maker, plus interest for 30 days, 9%. What entry should be made to record the receipt of the payment?

3. Under what section should accounts receivable be reported on the balance sheet?

4. To reduce its bad debt expense, Adang Inc. decided to quit granting credit to customers. Is this a wise decision by Adang Inc.? Explain.

5. The accounts receivable turnover increased, while the number of days' sales in receivables decreased for the current year for Nackerud Co. Are changes for the current year good or bad? Explain.

Reference no: EM13900210

Questions Cloud

What are the primary functional requirements for the system : How would Education In Australia go about developing its information systems and Justify your choice of your selected approach to systems development.

What form or forms of confrontation should be used : How would you decide when to confront this woman's sin in counseling? What form or forms of confrontation should be used

What is the population standard deviation : A score that is 6 points below the mean corresponds to a z-score of z =22.00. What is the population standard deviation?

Explain what asset management methods will be most cost : Explain what asset management methods will be most cost effective while investing in your selected country

What entry should be made to record the receipt of payment : The note receivable dishonored in Question 1 is paid on May 30 by the maker, plus interest for 30 days, 9%. What entry should be made to record the receipt of the payment?

Evaluate the financial statements and the financial position : Evaluate the financial statements and the financial position of health care institutions

What is meant by the risk structure of interest rates? : What is meant by the risk structure of interest rates?

What is a convertible bond? : What is a convertible bond?

What accounts should be debited and credited by the payee : The maker of a $6,000, 10%, 120-day note receivable failed to pay the note on the due date of April 30. What accounts should be debited and credited by the payee to record the dishonored note receivable?

User Account

All Pages