Reference no: EM131201308

Question: Journalize Summer's entry to adjust the allowance account to its correct balance at December 31, 2012.
Prepare a T-account to compute the ending balance of Allowance for uncollectible accounts.
Use the direct write-off method to journalize Peterson's write-off of the uncol- lectible receivables.
What is Peterson's balance of Accounts receivable at February 29, 2012? Does Peterson expect to collect the total amount?

Question:  Journalize the entries required for Gate City Cycles, assuming Gate City uses the direct write-off method.
Journalize these sale transactions for the restaurant.
For each of the notes receivable, compute the amount of interest revenue earned during 2012. Use a 360-day year, and round to the nearest dollar.

Question:  Journalize the following transactions for the bank (explanations are not required):
Lending the money on June 6.
Collecting the principal and interest at maturity. Specify the date. For the computation of interest, use a 360-day year.

Question:  How much net income did Northend earn for the month?
Show two ways Northend can report receivables on its classified balance sheet.
Compute Southside's (a) acid-test ratio, (b) days' sales in average receivables for 2012, and (c) accounts receivable turnover ratio. Evaluate each ratio value as strong or weak. Southside sells on terms of net 30.

Question:  Match the terms with their correct definition.
Recall the components of internal control you learned in Chapter 7. Identify the internal control weakness in this situation, and propose a way to correct it.
Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance for uncollectible accounts at December 31, 2012.

Question:  Show how GPS Technology will report its net Accounts receivable on its December 31, 2012 balance sheet.
Prepare T-accounts to show the ending balances in Accounts receivable and Allowance for uncollectible accounts. Compute net accounts receivable at October 31. How much does Windy Mountain expect to collect?

Question:  Show how Windy Mountain Flagpoles will report net Accounts receivable on its October 31, 2012 balance sheet.
Journalize sales, collections, uncollectible account expense using the direct write- off method, and write-offs of uncollectibles during October 2012.

Question:  Show how Accounts receivable would be reported for Windy Mountain Flagpoles on its October 31, 2012 balance sheet under the direct write-off method.

Question:  Journalize for High Performance:
Sale on account, $23,000. (Ignore cost of goods sold.)
Collection of $8,000 on account.
Write-off of the remaining portion of Anthony's account receivable. High Performance uses the direct write-off method for uncollectibles.
Reinstatement of Anthony's account receivable.
Collection in full from Anthony, $15,000.

Question:  Show how High Performance would report receivables on its balance sheet after all entries have been posted.

Question:  Journalize all entries required for Marathon Running Shoes.
Journalize all entries for Synergy Bank related to the note for 2012 and 2013.
Which party has a
note receivable?
note payable?
interest revenue?
interest expense?

Question:  How much in total would Kelsing pay the bank if she pays off the note early on April 30, 2013?
Journalize all required entries from February 1 through April 30, 2012. Use a 360-day year for interest computations.
Record the transactions in Hot Heat's journal.

Question:  Calculate Algonquin's acid-test ratio for 2013. Determine whether Algonquin's acid-test ratio improved or deteriorated from 2012 to 2013. How does Algonquin's acid-test ratio compare with the industry average of 0.80?
Calculate the days' sales in receivables for 2013. How do the results compare with Algonquin's credit terms of net 30?

Question:  Calculate Algonquin's accounts receivable turnover ratio. How does Algonquin's ratio compare to the industry average accounts receivable turnover of 10?
Compute Contemporary's average collection period on receivables during 2012.

Question:  Suppose Contemporary's normal credit terms for a sale on account are "2/10, net 30." How well does Contemporary's collection period compare to the company's credit terms? Is this good or bad for Contemporary?
What types of receivables are most likely to be collected by Organizational Kings?

Question:  List the following procedures in the correct order.
Another person, such as the owner or the manager, compares the amount of the bank deposit to the total of the customer credits posted by the accountant. This gives some assurance that the day's cash receipts went into the bank and that the same amount was posted to customer accounts.
The person who handles cash should not prepare the bank reconciliation.
An employee with no access to the accounting records deposits the cash in the bank immediately.
The remittance slips go to the accountant, who uses them for posting credits to the customer accounts.
Someone other than the accountant opens the mail. This person separates cus- tomer checks from the accompanying remittance slips.

Question:  Journalize all September entries using the allowance method. Uncollectible account expense was estimated at 3% of credit sales. Show all September activ- ity in Accounts receivable, Allowance for uncollectible accounts, and Uncollectible account expense (post to these T-accounts).

Question:  Using the same facts, assume instead that Daisy used the direct write-off method to account for uncollectible receivables. Journalize all September entries using the direct write-off method. Post to Accounts receivable and Uncollectible account expense and show their balances at September 30, 2012.
What amount of uncollectible account expense would Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.

Question:  What amount of net accounts receivable would Daisy report on its September 30, 2012 balance sheet under each of the two methods? Which amount is more real- istic? Give your reason.
Journalize the transactions.

Question:  Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.
Show how Mountain Terrace Medical Center should report net accounts receiv- able on its December 31, 2012 balance sheet. Use the three line reporting format.

Question:  Open T-accounts for Allowance for uncollectible accounts and Uncollectible account expense. Keep running balances, assuming all accounts begin with a zero balance.
Record the transactions in the general journal, and post to the two T-accounts.

Question:  Assume the December 31, 2013, balance of Accounts receivable is $135,000. Show how net Accounts receivable would be reported on the balance sheet at that date. Use the three line format of reporting the net accounts receivable.

Question:  Record the transactions in the journal of Relaxing Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)
Determine the due date and maturity value of each note.

Question:  Journalize the entry to record the inception of each of the three notes and also journalize a single adjusting entry at December 31, 2012, the fiscal year end, to record accrued interest revenue on all three notes.
Journalize the collection of principal and interest at maturity of all three notes.

Question:  Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)
Compute these ratios for 2012 and 2011:
Acid-test ratio
Days' sales in receivables
Accounts receivable turnover

Question:  Considering each ratio individually, which ratios improved from 2011 to 2012 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?
What types of receivables are most likely to be collected by Tutor Tots?
List the following procedures in the correct order.

Question:  Journalize all November entries using the allowance method. Uncollectible account expense was estimated at 1% of credit sales. Show all November activ- ity in Accounts receivable, Allowance for uncollectible accounts, and Uncollectible account expense (post to these T-accounts).
Using the same facts, assume instead that Blossom used the direct write-off method to account for uncollectible receivables. Journalize all November entries using the direct write-off method. Post to Accounts receivable and Uncollectible account expense and show their balances at November 30, 2012.

Question:  What amount of uncollectible account expense would Blossom report on its November income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.
What amount of net accounts receivable would Blossom report on its November 30, 2012 balance sheet under each of the two methods? Which amount is more realistic? Give your reason.

Question:  Journalize the transactions.
Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.

Question:  Show how Park Terrace Medical Center should report net Accounts receivable on its December 31, 2012 balance sheet. Use the three line reporting format.
Open T-accounts for Allowance for uncollectible accounts and Uncollectible account expense. Keep running balances, assuming all accounts begin with a zero balance.

Question:  Record the transactions in the general journal, and post to the two T-accounts.
Assume the December 31, 2012, balance of Accounts receivable is $139,000. Show how net Accounts receivable would be reported on the balance sheet at that date. Use the three line format of reporting the net accounts receivable.

Question:  Record the transactions in the journal of Sleepy Recliner Chairs. Explanations are not required. (For notes stated in days, use a 360-day year. Round to the nearest dollar.)
Determine the due date and maturity value of each note.

Question:  Journalize the entry to record the inception of each of the three notes and also journalize a single adjusting entry at October 31, 2012, the fiscal year end, to record accrued interest revenue on all three notes.
Journalize the collection of principal and interest at maturity of all three notes.

Question:  Journalize all transactions for Rural Beginnings. Round all amounts to the near- est dollar. (For notes stated in days, use a 360-day year.)
Compute these ratios for 2012 and 2011:
Acid-test ratio
Days' sales in receivables
Accounts receivable turnover

Question:  Considering each ratio individually, which ratios improved from 2011 to 2012 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?
Journalize the entry to record Johnson's uncollectible account.
Journalize the entry to record and establish the allowance using the percentage method for January credit sales.

Question:  Journalize the entry to record the identification of the customer's bad debt.
Prepare all required journal entries and post them to Shine King's ledger.
Reconcile the Accounts receivable control account to the Accounts receivable subsidiary ledger.

Question:  Should Sanchez start accepting debit and credit cards? Show the computations of net income under her present arrangement and under the plan. (Challenge)
How much more or less would net income be for 2011 if Pauline's Pottery were to use the allowance method for bad debts? Please use the percentage-of-sales method.

Question:  How much of the receivables balance at the end of 2011 does Pauline's Pottery actually expect to collect? (Disregard beginning account balances for the purpose of this question.)
Compute these amounts, and then explain for Pauline's Pottery why net income is more or less using the allowance method versus the direct write-off method for uncollectibles.

Question:  Is McMurphy's practice of smoothing income ethical? Why or why not?
What can a business like this do to prevent employee fraud of this kind?
What effect would Dylan's actions have on the balance sheet? The income statement?

Question:  How much discretion does a business have with regard to accommodating hardship situa- tio.ns? (Challenge)
Do accounts receivable appear to be an important asset for Amazon.com ?

Question:  Assume that all of "Accounts receivable, Net, and Other" is accounts receivable. Further assume that gross receivables at December 31, 2009, were $908 million. Answer the fol- lowing questions based on these data, plus what is reported on the balance sheet.
How much did customers owe Amazon.com at December 31, 2009?
How much did Amazon.com expect to collect from customers after December 31, 2008?
Of the total receivable amount at December 31, 2009, how much did Amazon.com
expect not to collect?

Question:  Compute Amazon.com 's acid-test ratio at the end of 2009. Marketable securities are short-term investments. Disregard deferred tax assets. If all the current liabilities came due immediately, could Amazon pay them?

Question:  As a group, visit a copy center to familiarize yourselves with its operations. If possible, interview the manager or another employee. Then write a loan request that Davidson and Thornton will submit to a bank with the intent of borrowing $40,000 to be paid back over three years. The loan will be a personal loan to the partnership of Davidson and Thornton, not to Rolltide Copy Center. The request should specify all the details of Davidson and Thornton's plan that will motivate the bank to grant the loan. Include a budgeted income statement for the first six months of the copy center's operation.

Question:  As a group, interview a loan officer in a bank. Have the loan officer evaluate your loan request. Write a report, or make a presentation to your class-as directed by your instructor-to reveal the loan officer's decision.
Record the transactions in Big Ted's journal.
Determine the due date and maturity value of each note.

Question:  Determine the discount and proceeds from the sale (discounting) of each note.
Journalize the discounting of notes (1) and (2).
Determine the due date and maturity value of each note.
Determine the discount and proceeds from the sale (discounting) of each note.
Journalize the discounting of notes (1) and (2).