You are watching: Which one of the following is not one of the principles of managing accounts receivable?
LO 9.1Which of the following best represents the corresponding principle criteria?Expenses space reported in the period in i beg your pardon they to be incurred.Expenses may be reported in a different period than the corresponding revenues.Revenue and expenses are matched based upon when costs are paid.Revenue is recognized when an bespeak occurs and not when the actual revenue is initiated.
LO 9.1If a customer pays v a credit transaction card and the service has been provided, i m sorry of the following accounts will be offered to document the sales entry because that this transaction?Cost of products Sold, goods Inventory, Sales RevenueSales Revenue, credit Card Expense, accounts ReceivableAccounts Receivable, goods Inventory, credit transaction Card ExpenseCost of goods Sold, credit Card Expense, Sales Revenue
LO 9.1A auto dealership sells a auto to a customer because that $35,000. The customer makes a 10% down payment, and also the dealership finances the continuing to be 90% in-house. How much will the auto dealership document in accounts Receivable for this customer?$31,500$19,250$8,750$7,000
LO 9.2Tines business computes poor debt based on the allowance method. They recognize their existing year’s balance estimation to it is in a credit of $45,000. The previous period had a credit balance in allowance for hesitant Accounts the $12,000. What have to be the reported number in the adjusting entry because that the current period?$12,000$45,000$33,000$57,000
LO 9.2Doer agency reports year-end credit sales in the amount of $390,000 and also accounts receivable of $85,500. Doer provides the income statement technique to report bad debt estimation. The estimation portion is 3.5%. What is the approximated balance uncollectible making use of the earnings statement method?$13,650$2,992.50$136,500$29,925
LO 9.2Balloons plus computes poor debt based on the pin money method. They identify their existing year’s balance estimate to be a credit of $84,000. The previous duration had a credit balance in allowance for cynical Accounts that $26,000. What need to be the reported figure in the adjusting entry because that the present period?$84,000$58,000$26,000$110,000
LO 9.2Conner pride reports year-end credit sales in the lot of $567,000 and accounts unification of $134,000. Conner provides the balance sheet an approach to report negative debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance paper method?$26,082$6,164$260,820$61,640
LO 9.2Which technique delays recognition of bad debt until the specific customer accounts receivable is identified?income declare methodbalance paper methoddirect write-off methodallowance method
LO 9.2Which that the adhering to estimation approaches considers the lot of time past due once computing negative debt?balance paper methoddirect write-off methodincome statement methodbalance sheet aging the receivables method
LO 9.3Which of the following ideal represents a confident product the a lower number of days’ sales in receivables ratio?collection of receivables is quick, and also cash have the right to be used for other business expenditurescollection that receivables is slow, maintaining cash secured to receivablescredit extension is lenientthe lender just lends to the optimal 10% that potential creditors
LO 9.3South Rims has actually an account receivable balance at the end of 2018 that $357,470. The net credit sales because that the year are $769,346. The balance at the finish of 2017 to be $325,300. What is the accounts receivable turnover price for 2018 (rounded to two decimal places)?2.02 times2.25 times2.15 times1.13 times
LO 9.3What details can best be elicited from a receivable ratio?company power with existing debt collectioncredit extension effect on cash saleslikelihood the future client bankruptcy filingsan boost in future credit sales to existing customers
LO 9.3Ancient Grains endless has an account receivable turnover proportion of 3.34 times. The net credit transaction sales because that the year room $567,920. What is the days’ sales in receivables ratio for 2018 (rounded come the nearest totality number)?190 days109 days110 days101 days
LO 9.4Which that the complying with is not a means to regulate earnings?Change the an approach for negative debt estimation.Change the figure for the uncollectible percentage.Under the balance paper aging method, adjust the past-due categories.Change the days of common stock issuance.
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LO 9.4Which the the complying with is true around earnings management?It functions within the constraints of GAAP.It works outside the limit of GAAP.It do the efforts to boost stakeholder’s views of the company’s gaue won position.Both B and CBoth A and C
LO 9.4Which statement is many directly impacted by a adjust to net income?balance sheetincome statementstatement of preserved earningsstatement that cash flows
LO 9.4Michelle firm reports $345,000 in credit sales and also $267,500 in accounts receivable at the end of 2019. Michelle at this time uses the revenue statement technique to record poor debt estimate at 4%. To manage earnings an ext efficiently, Michelle transforms bed debt estimation to the balance sheet technique at 4%. Just how much is the difference in network income between the earnings statement and balance sheet methods?$3,100$13,800$10,700$77,500
LO 9.6Which of the complying with is true the a maturity date?It should be calculated in days, no in month or years.It is the day when principal and interest on a note are to be repaid to the lender.It is the date of facility of keep in mind terms in between a lender and customer.It is no a characteristic of a keep in mind receivable.
LO 9.6Mark Industries issues a note in the quantity of $45,000 on august 1, 2018 in exchange because that the sale of merchandise. I m sorry of the following is the correct journal entry because that this sale?
LO 9.6A client takes the end a loan of $130,000 ~ above January 1, through a maturity day of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would certainly be the recorded interest number at the time?$7,150$65,000$14,300$2,383
LO 9.6A firm collects an honored keep in mind with a maturity day of 24 months from establishment, a 10% interest rate, and also an early loan lot of $30,000. Which accounts are used to record collection of the honored keep in mind at maturity date?Interest Revenue, attention Expense, CashInterest Receivable, Cash, note ReceivableInterest Revenue, interest Receivable, Cash, note ReceivableNotes Receivable, attention Revenue, Cash, interest Expense
LO 9.6Orion Rentals is can not to collect on a keep in mind worth $25,000 and also has accumulated interest that $250. It convert this note and also interest to account receivable. After some time, Orion is still unable to collection the debt and it decides to market the converted note to a repertoire agency. The collection company will pay just 20% that the value of account receivable come Orion. What is the amount of cash payment to Orion indigenous the collection agency?