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1. Which of the two methods of estimating uncollectibles provides for the most accurate estimate of the current net realizable value of the receivables?
2. For a business, what are the advantages of a note receivable in comparison to an account receivable?
3. Tecan Company issued a note receivable to Bauer Company. (a) Who is the payee? (b) What is the title of the account used by Bauer Company in recording the note?
4. If a note provides for payment of principal of $75,000 and interest at the rate of 8%, will the interest amount to $6,000? Explain.
5. The maker of a $6,000, 10%, 120-day note receivable failed to pay the note on the due date of April 30. What accounts should be debited and credited by the payee to record the dishonored note receivable?
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