A note receivable bearing a reasonable interest rate is sold to a bank with recourse. The note receivable discounted account was appropriately credited. The note receivable discounted account should be reported as a. contra asset account for the proceeds from the discounting transaction b. contra asset account for the face amount fo the note receivable c. liability account for the proceeds from the discounting transaction d. liability account for the face amount of the note

Q: Which of the following is not a correct statement?     Accounts receivable represents credit sale,…

A: Account recievable is a current asset that shows the amount to be recieved by the debtors that have…

Q: If the proceeds of a discounted note are less than the face amount, the difference is debited to…

A:

Q: Vhen a bank grants a consumer loan to someone, it leads to: O a. an indirect flow of funds Ob. Oc a…

A: Consumer loans are a type of loan offered by banks and other financial institutions to individuals…

Q: Which of the following statements concerning receivables is correct? Notes receivable are often…

A: Receivable means, money not received yet. Note receivable is a written note promise to pay a certain…

Q: Complete the follow table to ensure the difference between the three instruments.

A: The instruments which help in negotiating the payment according to the flexibility of time and…

Q: What do firms use to record the sales value of a transaction when a note receivable has either an…

A: Notes receivable are a written promise which gives the holder of the note a right to receive…

Q: What account is credited when you record a credit memo for uncollectable receivables? A. Accounts…

A: A credit note is issued the reduce the amount of accounts receivable. Credit note reduce the…

Q: Which of the following should be classified as a current liability? a. Customers' unredeemed gift…

A: A current liability is payable within the accounting cycle or one year whichever is earlier. The…

Q: Which statement is false?  a. The amount of Accounts Receivable pledged should be excluded from…

A: Accounts receivables:-Accounts receivables includes the balance which is due to firm on the goods…

Q: Select the term that best fits each of the following definitions and descriptions. a. Notes…

A: There are varied terms used in accounting in day-to-day operations. They have a standard meaning…

Q: The objectives of Receivables Management are as follows:   a. All of above   O b. To maintain…

A: Lets understand the meaning of receivable management. As the term suggest, receivable management is…

Q: The "principal" of a note receivable refers to: a.the amount of cash borrowed. b.the present value…

A: The principal amount of a note receivable is the amount of cash borrowed.

Q: The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest…

A: Introduction: Interest: Interest is the amount charged on the principle amount. Interest is…

Q: Which of the following is correct when a company uses the net price method of recording receivables?…

A: Under net method, the sales are initially recorded with the net amount after deducting the amount of…

Q: Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections…

A: The debit memorandum is issued by the bank to notify the depositor about the deductions made from…

Q: A Credit Note would be issued by a business: A. as evidence of goods sold on credit. B. as reference…

A: Accounting refers to the process of recording, summarizing, interpretation the financial information…

Q: Which of the following statements is TRUE? a. When the stated rate of interest exceeds the…

A: The stated rate is not considered the compounding factor of the time value of money. The effective…

Q: What is the distinguishing characteristic between accounts receivable and notes receivable? a. Notes…

A: Accounts Receivable: Amount due for the goods or services used or delivered for the organization but…

Q: Statement 1: Companies record and report long-term notes receivable on a discounted basis.…

A: Let's Understand some basics  Notes Receivable are the promissory notes given by receivables of the…

Q: Discount on note receivable is: Group of answer choices the amount of total interest earned as of…

A: Discounting on bills receivable or note receivable means pledging to pay before the maturity date.…

Q: The Allowance for Doubtful Accounts represents: a. The amount of uncollected accounts written off to…

A: The allowance for doubtful accounts is a contra-asset account that is associated with accounts…

Q: When unspecified receivables are used to secure for a loan, which accounting treatment is required?…

A: Accounts receivables can be used to secure loan.Borrower takes loan on security of his receivables…

Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…

A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…

Q: Which of the following is money kept by the firm with a bank in low-interest or non-interest bearing…

A: Loan is a part of financing in which a bank or institution lends money to the business in exchange…

Q: When a company earns interest on a note receivable or on a bank account, the debit and credit are as…

A: Note Receivable:-It is a promissory note where the written promise to pay the amount at some future…

Q: the terms in the left-hand column below with the descriptions on the right.   1. Percentage of…

A: The term "credit sales" refers to the transfer of ownership of goods and services to a consumer with…

Q: When a customer is delinquent on paying a notes receivable, your company has the option to continue…

A: Here in the questions, there are multiple sub-parts so we are doing the first three sub-parts  If…

Q: In a bank reconciliation, a deposit in transit is A. deducted from the bank balance on the bank…

A: Bank reconciliation is prepared to reconcile the balance as per bank book and balance as per cash…

Q: Statement 1: A notes payable wherein its fair value exceeded its face amount can tell us that it was…

A: Notes payable: It implies a written promissory note that is borne by the bearer and it contains a…

Q: A company repays its bank borrowings.  The entry to record that transaction should be Group of…

A: Borrowing means where business taken loan from outsider to be used in business and repaid later.

Q: nts) Which of the following is NOT a difference we discussed between accounts and notes receivable?…

A: Accounts receivable represents the money owed by customers,. Accounts receivable is significantly…

Q: Under the effective interest method of interest bearing note in lump-sum payment, the interest to be…

A: The bonds are issued at premium or discount depending on the market interest rate of bonds. If…

Q: Which of the following accounting entries is correct?    a) Record of issuance of bills receivable…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: When the maker pays the full amount due on note receivable on the maturity date it is called as. a.…

A: Note receivable is a form of current asset of the business. It denotes amount to be received from…

Q: Question: Which of the following is not a control over debtors? a. investigation the credit…

A: Debtor management systems refers to all the activities that a company undertakes to keep control…

Q: QUESTION 10 Match the term on the left to the appropriate classification or description on the…

A: In this question, we are required to match the terms given in the left side with the description…

Q: Which of the following will increase the balance of accounts receivable? Group of answer choices…

A: Option B and D are incorrect because these will decrease the balance of accounts receivables. Option…

Q: Which of the following expresses the distinction between accounts receivable and notes receivable?…

A: Notes receivable: which having interest rate, maturity date. both principle and interest to be…

Q: The interest rate that banks provide to the customers for the savings deposit account is more than…

A: The bank provides different types of rates on different types of investment.

Q: The actual interest rate charged on a discounted note is called the _____ interest rate. a.effective…

A: Interest rate is the rate of return that is charged on the loan.

Q: What is meant by the discounting of a note receivable? Describe the four-step process used to…

A:

Q: Question 9 consist of noninterest-bearing demand deposits and interest-bearing checking accounts. O…

A: The correct option with explanation are as follows

Q: Discounting is a transfer or endorsement of a promissory note by the payee in favor of another party…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: ____________ to a Notes Payable or a Mortgages Payable account generally represent payments in full…

A: Notes payable: It is a liability account wherein the borrower writes a promissory note to the lender…

Q: 8. When specified receivables are used to secure for a loan on a notification basis, which…

A: The account receivables are the current assets of the company, they represent the sale made by the…

Q: When assessing credit losses on estimated uncollectible notes receivable, the discounted cash flow…

A: Discounted cash flow (DCF) technique is a financial valuation method used to determine the present…

Q: In a bank reconciliation, an EFT cash payment is A. added to the bank balance in the general ledger…

A: Bank reconciliation is prepared to reconcile the balance as per bank book and balance as per cash…

Q: 18.  IDENTIFICATION. This refers to a sale of a single of multiple receivables to any financing…

A: The question is related to the identification and true and false.