The Receivables Days ratio may be distorted A/ Factoring of Accounts Receivable B Using year end figures and not averagen C Sales on long credit terms to a small num All of the above
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- 14 Momentum Products Incorporated just recorded an adjusting journal entry for the current year's estimate of bad debts. Assuming all else is equal, this adjusting journal entry will cause: Multiple Choice the accounts receivable turnover ratio to increase. net income to increase. total assets to remain unchanged. net accounts receivable to increase.An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $4,139. If Allowance for Doubtful Accounts has a $1,071 debit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. debit to Bad Debt Expense for $1,071. debit to Bad Debt Expense for $5,210. credit to Allowance for Doubtful Accounts for $4,139. debit to Bad Debt Expense for $4,139.An aging of a company's accounts receivable indicates that $5,539 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a credit to the Allowance for Doubtful Accounts of:
- An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $5,353. If Allowance for Doubtful Accounts has a $1,093 debit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $6,446 b. debit to Bad Debt Expense for $5,353 c. credit to Allowance for Doubtful Accounts for $1,093 d. debit to Bad Debt Expense for $4,26014 - Which of the following is the formula to compute accounts receivable turnover? a) The formula is net sales / average net accounts receivable. b) O The formula is cost of goods sold / average inventory The formula is net credit sales / average inventory. d) O The formula is average net accounts receivable / one day's sales.19. The accounts receivable turnover is 8.14, and average net accounts receivable during the period is $400,000. What is the amount of net credit sales for the period? Brief Exercises Identify different types of receivables. BE8.1 (LO 1), C The following are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balan a. Sold merchandise on account for $64,000 to a customer. b. Received a promissory note of $57,000 for services performed. c. Advanced $10,000 to an employee. Record basic accounts receivable transactions. PEO AR Rooord the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.)
- The method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible. No attempt is made to predict bad debts expense. percentage of sales percentage of receivables direct write-off allowanceAn aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,145. If Allowance for Doubtful Accounts has a $1,241 credit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. a-credit to Allowance for Doubtful for $4,145. b-debit to Bad Debt Expense for $2,904. c-debit to Allowance for Doubtful Accounts for $2,904. d-debit to Allowance for Doubtful Accounts for $4,145The estimated loss from uncollectible accounts can be based on the net credit sales for the year or the ____________________ balance at the end of the year.
- An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,334. If Allowance for Doubtful Accounts has a $1,290 credit balance, the adjustment to record the bad debt expense for the period will require a a.debit to Bad Debt Expense for $4,334. b.credit to Allowance for Doubtful Accounts for $4,334. c.debit to Bad Debt Expense for $1,290. d.debit to Bad Debt Expense for $3,044.If a company faded to recognize the discount on non-interest-bearing notes receivable (unearned interest income credit). meaning the nite was recorded at face how would it affect the financial statements? A. the statement of changes in equity will not affect by this error? b. at the end of the year of issuance, the statement will be understand while the balance sheet will be overstated c. the income statement won't be enormous while the balance will be overstated d. the income statement will be understated while the balance sheet will not be enoneous.What does the accounts receivable turnover ratio measure? Multiple Choice Average balance of accounts receivables How quickly accounts receivable turn into cash How quickly inventory turns into accounts receivable How quickly the accounts receivable balance increases