Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 9, Problem 23MC
Orion Rentals is unable to collect on a note worth $25,000 and has accumulated interest of $250. It convert this note and interest to
A. $5,000
B. $5,050
C. $20,000
D. $19,950
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
39. Haru Company sold accounts receivable without recourse for P10, 600,000. Mild company received P10, 000,000 cash immediately from the factor. The remaining P600, 000 will be received once the factor verifies that none of the accounts receivable is in dispute. The accounts receivable had a face amount of P12, 000,000. Mild company had previously established an allowance for bad debts of P500, 000 in connection with these accounts. How much is the loss on factoring?
Amazon company has accounts receivable totaling $850,000 and an Allowance for doubtful Accounts balance of
$60,000. The company will have to write off an uncollectable receivable in the amount of $5,000.
Required: What will be the effect on bad debt expense of writing off this accounts receivable? Explain.
Benxa company was found to have difficulty payıng debts or so-called (to fail/failite),
and unsecured invoices would be paid $50 for every $2,000. Brown Company has notes
receivable from Benxa company of $50,000. Benxa Company's notes payable to Brown
company are secured by inventories estimated at $18,000 How much is Brown
Company's realızable receivables?
Chapter 9 Solutions
Principles of Accounting Volume 1
Ch. 9 - Which of the following is not a criterion to...Ch. 9 - Which of the following best represents the...Ch. 9 - If a customer pays with a credit card and the...Ch. 9 - A car dealership sells a car to a customer for...Ch. 9 - Tines Commerce computes bad debt based on the...Ch. 9 - Doer Company reports year-end credit sales in the...Ch. 9 - Balloons Plus computes bad debt based on the...Ch. 9 - Conner Pride reports year-end credit sales in the...Ch. 9 - Which method delays recognition of bad debt until...Ch. 9 - Which of the following estimation methods...
Ch. 9 - Which of the following best represents a positive...Ch. 9 - South Rims has an accounts receivable balance at...Ch. 9 - What information can best be elicited from a...Ch. 9 - Ancient Grains Unlimited has an accounts...Ch. 9 - Which of the following is not a way to manage...Ch. 9 - Which of the following is true about earnings...Ch. 9 - Which statement is most directly affected by a...Ch. 9 - Michelle Company reports $345,000 in credit sales...Ch. 9 - Which of the following is true of a maturity date?...Ch. 9 - Mark Industries issues a note in the amount of...Ch. 9 - A customer takes out a loan of $130,000 on January...Ch. 9 - A company collects an honored note with a maturity...Ch. 9 - Orion Rentals is unable to collect on a note worth...Ch. 9 - What is the matching principle?Ch. 9 - A beverage wholesale outlet sells beverages by the...Ch. 9 - On January 1, a flower shop contracts with...Ch. 9 - American Signs allows customers to pay with their...Ch. 9 - Which account type is used to record bad debt...Ch. 9 - Earrings Depot records bad debt using the...Ch. 9 - Racing Adventures records bad debt using the...Ch. 9 - Aron Larson is a customer of Bank Enterprises. Mr....Ch. 9 - The following accounts receivable information...Ch. 9 - What are bad debts?Ch. 9 - What are some possible negative signals when the...Ch. 9 - Berry Farms has an accounts receivable balance at...Ch. 9 - What are the two most common receivables ratios,...Ch. 9 - What is the difference between earnings management...Ch. 9 - What is an earnings management benefit from...Ch. 9 - Angelos Outlet used to report bad debt using the...Ch. 9 - What is an earnings management benefit from...Ch. 9 - What are the two methods of revenue recognition...Ch. 9 - What is the installment method?Ch. 9 - What is a possible ramification of deferred...Ch. 9 - What is the completed contract method?Ch. 9 - What is the percentage of completion method?Ch. 9 - British Imports is unable to collect on a note...Ch. 9 - Chemical Enterprises issues a note in the amount...Ch. 9 - What is the principal of a note?Ch. 9 - A customer was unable to pay the accounts...Ch. 9 - What are three differences between accounts...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On March 6,...Ch. 9 - Window World extended credit to customer Nile...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Millennial Manufacturing has net credit sales for...Ch. 9 - Mirror Mart uses the balance sheet aging method to...Ch. 9 - Aerospace Electronics reports $567,000 in credit...Ch. 9 - Dortmund Stockyard reports $896,000 in credit...Ch. 9 - Arvan Patel is a customer of Banks Hardware Store....Ch. 9 - Resin Milling issued a $390,500 note on January 1,...Ch. 9 - Mystic Magic issued a $120,250 note on January 1,...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On February...Ch. 9 - Laminate Express extended credit to customer Amal...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Starlight Enterprises has net credit sales for...Ch. 9 - Outpost Designs uses the balance sheet aging...Ch. 9 - Clovis Enterprises reports $845,500 in credit...Ch. 9 - Fortune Accounting reports $1,455,000 in credit...Ch. 9 - Anderson Air is a customer of Handler Cleaning...Ch. 9 - Rain T-Shirts issued a $440,600 note on January 1,...Ch. 9 - Element Surfboards issued a $210,800 note on...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Jars Plus recorded $861,430 in credit sales for...Ch. 9 - The following accounts receivable information...Ch. 9 - Funnel Direct recorded $1,345,780 in credit sales...Ch. 9 - Review the select information for Bean Superstore...Ch. 9 - The following select financial statement...Ch. 9 - Noren Company uses the balance sheet aging method...Ch. 9 - Elegant Universal uses the balance sheet aging...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Organics Plus is considering which bad debt...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Bristax Corporation recorded $1,385,660 in credit...Ch. 9 - The following accounts receivable information...Ch. 9 - Ink Records recorded $2,333,898 in credit sales...Ch. 9 - Review the select information for Liquor Plaza and...Ch. 9 - The following select financial statement...Ch. 9 - Elegant Linens uses the balance sheet aging method...Ch. 9 - Goods for Less uses the balance sheet aging method...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Shimmer Products is considering which bad debt...Ch. 9 - Review the new revenue recognition guidance issued...Ch. 9 - You are considering two possible companies for...Ch. 9 - You own a construction company and have recently...Ch. 9 - When a customer is delinquent on paying a notes...
Additional Business Textbook Solutions
Find more solutions based on key concepts
What led MailChimps founders to change its focus on the customers they were selling to?
Principles of Management
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
Define cost pool, cost tracing, cost allocation, and cost-allocation base.
Cost Accounting (15th Edition)
Define cost pool, cost tracing, cost allocation, and cost-allocation base.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
What is the difference between cost reporting and cost control?
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Ibra LLC sold OMR 2000 goods to one of their reputed customer Mr Syed and collected the cheque immediately. The company sent the cheque to the bank for deposit, but the bank returned the cheque because of non-sufficient funds in Mr Syed’s account. How will you adjust the above reconciliation item in bank reconciliation statement? a. Deduct OMR 2000 from company’s cash book balance b. Add OMR 2000 to Company’s cash book balance c. Deduct OMR 2000 from bank reconciliation statement balance d. Add OMR 2000 to the bank statement balance Clear my choicearrow_forward1. the accountant finds from the copy of the loan record and from the company's checking account that the Bank has calculated the interest on 31/12 in the amount of 4,000 euros and has withdrawn the installment of the loan in the amount of 8,000 euros. 2. An additional 20,000 euros from customers are bad debts, the company's policy for the closing year is to cover them with provisions by 100%, and it also amortizes bad customers amounting to 10,000 euros. write the journal entriesarrow_forwardOtter company has a receivable amounting to P1,200,000 otter had previously established an allowance for bad debts of 50,000 in connection with these receivables.otter company sold these receivables with recourse for P1,060,000. Otter received P1,000,000 cash immediately from the factor. the remaining P60,000 will be received once the factor verifies that none of the receivables is in dispute. control was surrendered by Otter. the fair value of the recourse obligation is P26,000The loss on factoring to be recognized by Otter Company is?arrow_forward
- Researching GAAP Situation Hamilton Company operates in an industry with numerous competitors. It is experiencing a shortage of cash and decides to obtain money from a large bank by using some of its receivables as collateral. Hamilton pledges 5100,000 of its receivables, is charged a 12% fee on this amount, and notifies these credit customers to make their payments directly to the bank. Hamilton transfers the receivables to the bank, and the bank assumes the servicing activities, but Hamilton is responsible for all bad debts which it reasonably estimates to be 2% of the receivables amount. When the balance of the receivables pledged is reduced to 3,000, Hamilton is required to repurchase the receivables, notify the remaining credit customers to make payments to it, and reassume the servicing activities. The bank has the right to sell the receivables, except to Hamiltons major competitor. Hamiltons president has asked you how to account for (and record) this transaction. Directions Research the related generally accepted accounting principles and prepare a short memo to the president that answers his question. Cite your reference and applicable paragraph numbers.arrow_forwardBenxa company was found to have difficulty paying debts (to fail/failite), and unsecured claims would be paid $50 for every $2,000. Brown Company has notes receivable from Benxa company of $50,000. Benxa Company's notes payable to Brown company are secured by inventories estimated at $18,000. How much is Brown Company's realizable receivables?arrow_forwardWhat's the answer?arrow_forward
- Wanda Company sold accounts receivable without recourse for P8,200,000. The company received P8,000,000 cash immediately from the factor. The remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts. What amount of loss on factoring should be recognized?arrow_forwardnder Corporation is experiencing a temporary cash shortage and decides to transfer a group of its accounts receivable to Newton Company on March 22. Inder does not normally transfer its receivables. Newton accepts $80,000 of Inder’s accounts receivable, remits 80% of the accounts receivable transferred, and charges a 12% commission on the gross amount of the transferred receivables. Title to the receivables is transferred to Newton, and Newton has the right to assign, pledge, or sell the receivables. During the period, sales returns and allowances on transferred accounts amounted to $1,700. Required: 1. Prepare all the journal entries necessary by Inder to record the preceding information, assuming the transfer was without recourse. 2. Prepare all the journal entries necessary by Inder to record the preceding information, assuming the transfer was with recourse and the recourse obligation had an estimated fair value of $4,900.arrow_forwardUnion Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $418,000 in its disbursement account. As compensation to the bank for maintaining the zero-balance account, the firm will have to pay a monthly fee of $1,110 and maintain a $298,000 non-interest-earning deposit in the bank. The firm currently has no other deposits in the bank. Evaluate the proposed zero-balance account, and make a recommendation to the firm, assuming that it has an opportunity cost of 12.6%. The current opportunity cost is $ ?. (round to the nearest dollar.)arrow_forward
- XYZ Services sells (without recourse) $100,000 of receivables to a bank on 2/1/20. The bank retains 3% of the receivables and they charge a fee equal to 2% of the receivables. What effect (if any) does the sale on 2/1/20 have on the assets, liabilities, and equity of the bank that purchases the receivablesarrow_forwardInder Corporation is experiencing a temporary cash shortage and decides to transfer a group of its accounts receivable to Newton Company on March 22. Inder does not normally transfer its receivables. Newton accepts $110,000 of Inder’s accounts receivable, remits 80% of the accounts receivable transferred, and charges a 16% commission on the gross amount of the transferred receivables. Title to the receivables is transferred to Newton, and Newton has the right to assign, pledge, or sell the receivables. During the period, sales returns and allowances on transferred accounts amounted to $1,000. Required: 1. Prepare all the journal entries necessary by Inder to record the preceding information assuming the transfer was without recourse. 2. Prepare all the journal entries necessary by Inder to record the preceding information assuming the transfer was with recourse and the recourse obligation had an estimated fair value of $5,600. 3. Assume that Inder uses IFRS. How would…arrow_forwardDexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,100 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. Record write off of Leer Co. account. Record the reinstatement of an account previously written off. Record the cash received on account.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY