naining Time: 1 hour, 16 minutes, 34 seconds. estion Completion Status: QUESTION 1 The requirements for mora creditoris(default of the creditor) include the following O a. creditor fails to accept proper performance O b. the debt must be due O C. the debtor fails to perform on time Od. the delay in accepting performance is due to the fault of the creditor or persons for whose actions he is responsible O e. the delay is due to the fault of the debtor or persons for whose actions he is responsible Of. the debtor must tender proper performance g. b, c and e Oh. a. b, d and f QUESTION 2

Q: The debts written of as bad, if recovered subsequently are a. Credited to bad debts recovered…

A: Debtors are the persons to whom business has made credit sales and amount has not been received yet.…

Q: Percentage of Net Sales and Accounts Receivable Aging Method.   Requirements:

A: Bad debts refer to the amount that is owed from some another person or is to be received from…

Q: The cost of marginal bad debts is found by taking the difference between the levels of bad debts…

A: Bad debt refers to the loans or amount that can no longer be recovered as the person has lost all…

Q: Credit memos are manually applied to customer balances Select one: a. on the Receive payment form b.…

A: A credit memo, short for credit memorandum, is a document issued by a seller to a buyer, informing…

Q: Which of the following charges would NOT be subject to any error tolerance factor in the Loan…

A: Tolerance error in the loan estimate This means that a fee is deemed to be in "good faith" if the…

Q: Current Attempt in Progress For each of the following accounts, indicate the effect of a debit or a…

A: Assets have debit balance while liabilities and equity have credit balance.The increase in the…

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: Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales…

A: Using the allowance method, Bad Debt Expense is recognized in the period in which sales related to…

Q: Which of the following statement is not true about the del-credere commission? Select one: a. If…

A: Consignment- Consignment is a sale arrangement in which the consignor sends the goods to the…

Q: Choose the correct and explain. The following statements pertain to presentation and valuation of…

A: SOLUTION EXPLANATION- CUSTOMER ACCOUNT RECEIVABLE IS OFFSET ACCOUNT THAT CONTRA WITH ACCOUNTS WITH…

Q: Match each of the following terms with the appropriate definitions. A. Maker of a note B. Bad debts…

A: Accounts receivables are those customer accounts to whom credit sales has been made, but amount not…

Q: True or False: You can dispute an incorrect item on your credit report. True False

A: If there is an error in your credit report one should immediately takes steps to rectify it because…

Q: Statement 1: Under simplified approach for the impairment of receivables, an entity measures its…

A: Loss allowance balance is the balance which is also known as provision means this balance represents…

Q: Choose the term that is associated with estimating the uncollectible accounts balance existing in…

A: There is always some default risk associated with extending credit to the customers. When the…

Q: The definitions of default events are fairly standard, but what really constitutes a default? a. The…

A: Default refers to the failure to comply with the agreed terms of the agreement that the involved…

Q: What journal entry is used to write-off an uncollectible account under the allowance method?…

A: Concept of allowance method: Unlike the direct write off method, allowance account is maintained…

Q: pense and accounts receivable balance. Under different circumstances, another method is used called…

A: When there is only one large accounts receivable due from one client the direct write off method if…

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: If the provision for doubtful debt is increased, the accounting adjustment will be:  Select one: a.…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Modes of extinguishing obligations when creditor abandons his right to collect.

A: You have asked four different multiple choice question and as our guidelines are concerned we…

Q: When the maker of a note pays at maturity, the note is said to be dishonored. True false question.…

A: The correct answer is FALSE.Explanation:Keypoints to remember:Note: A note is like a written promise…

Q: GAAP requires companies to method to record bad debts expense. OA. use the allowance OB. use the…

A: Allowance for doubtful accounts is determined as the reduction in the accounts receivable that…

Q: To write-off a bad debt using the allowance method, the Bad Debt Expense account should be credited.…

A: Bad debt allowance method: It is a method of creating a reserve for the bad debt (debtor who…

Q: Hiroole Corporation prepares an aging schedule for its accounts receivable at the end of each month…

A: Bad debts expense is recognized in the books of the company when a debtor is unable or unwilling to…

Q: If a credit marked as "Upon receipt by the beneficiary of notice from the issuing bank that a draft…

A: The question is based on the banking term and arrangement of credit under different conditions.…

Q: True or False. 1. The loan is considered fully paid and the debtor is released from the…

A:

Q: What is grace period? O The amount of time you have before your payment is due. O The amount of time…

A: Ans.  None of the above

Q: The estimate of a bad debt expense may be based on the historical relationship between actual bad…

A: Loss from uncollectible accounts means where goods has been sold on credit and amount has not been…

Q: Which of the following statements related to estimated liabilities is false? Multiple Choice O о…

A: Estimated liabilities are those liabilities for which exact amount is not known, but with possible…

Q: When the allowance method for recognizing uncollectible accounts receivable is used, the allowance…

A: If the write-offs are equal to the difference between the beginning and ending balances, it implies…

Q: What is the normal journal entry for recording bad debt expense? Group of answer choices debit…

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Q: When an account is determined to be uncollectible, "writing off" the bad debt usually involves…

A: When the company sells the goods on credit it allows some credit period for the customers to pay off…

Q: Which of the following is the correct journal entry to write off a debtor who has been declared as…

A: The journal entry to write off a debtor who has been declared as bankrupt is as follows :

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: The adjusting entry for a bad debt expense has a debit and credit to what account.     Bad debt…

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: Discuss the best reason(s) for using the allowance method and give some examples of companies that…

A: The reasons for using the Allowance method are discussed hereunder : There are two methods to…

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…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.