I. Receivables might be sold to b take advantage of deep discounts on the cash r
ID: 2510306 • Letter: I
Question
I. Receivables might be sold to b take advantage of deep discounts on the cash realizable value of receivables generate cash quickly finance companies at an amount greater than cash realizable value. 12 Under the direct write-off method of accounting for uncollectible accounts a the allowance account is incressed for the actual amount of bad debt at the time of write- a a specific account receivable is decrcased for the actual amount of bad debt at the time of c balance sheet relationships are emphasized d. bad debt expense is always recorded in the period in which the revenue was recorded. of uncollectible account expense is understated at year end 8. If the amount net income will be understated b. stockholders' equity will be understated. c. allowance for doubtful accounts will be overstated a. -a net accounts receivable will be overstated 1% The financial statements of the Colter Manufacturing Company report net credit sales of S cost of goods sold of $600,000, and accounts receivable of $80,000 and $40,000 at the be and end of year, respectively. What is the average collection period (assume a 365-day y accounts receivable in days? a. 36.5 days b. 80 days 54.7 days d. 50 days Manning Retailers accepted $75,000 of Citibank Visa credit card charges for merchan July 1, Citibank charges 4% for its credit card use. The journal entry to record this tr Manning Retailers will inchude a credit to Sales of $75,000 and a debt(s) to: a. Cash $72,000 and Service Charge Expense $3,000. 15 Accounts Receivable $72,000 and Service Charge Expense $3,000 c. Cash $72,000 and Interest Expense $3,000. d. Accounts Receivable $75,000.Explanation / Answer
Question Answer Explanation 11 C Receivable is sold to generate cash quickly. It entails some cost. 12 B Direct write off is a method in which account receivable are reduced at the time when they actually become uncollectible. 13 D It will result in showing excess account receivable on net basis. 14 Please given complete question. Credit sales amount is missing. 15 A Cash will be debited by $ 72K and service charge expenses by $ 3K