Term
| Tucker's Cafe signed a $15,000, 180-day, 10%, interest-bearing note on May 1, 2009. Using a 360-day year, what is the maturity value of the note? |
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Definition
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Term
| Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable? |
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Definition
| Debit Cash $5,000.00; credit Notes Payable $5,000.00 |
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Term
| Blowing Rock Hardware paid First American Bank in full for a 180-day, 12%, interest-bearing note for $10,000. Using a 360-day year, what is the journal entry for the payment of the note payable? |
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Definition
| Debit Notes Payable $10,000.00; debit Interest Expense $600.00; credit Cash $10,600.00 |
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Term
| Carson's Candy Shoppe signed a 60-day, 10% note to Jello Beans for an extension of time on its account payable in the amount of $2,000.00. What is the correct entry for Carson's Candy Shoppe to record the note payable for an extension of time? |
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Definition
| Debit Accounts Payable/Jello Beans $2,000.00; credit Notes Payable $2,000.00 |
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Term
| Wholesome Food Distributors granted an extension of time for the account payable of Moore Food Store for a 90-day, 8%, $10,000 note. Using a 360-day year, what is the journal entry for Moore Food Store to record the payment of the note payable? |
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Definition
| Debit Notes Payable $10,000.00; debit Interest Expense $200.00; credit Cash $10,200.00 |
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Term
| Carson Tyler has an overdue account in the amount of $415.50 with Mountain Oil Company. Mountain Oil Company agrees to accept a note receivable from Carson. What is the journal entry to record the acceptance of the note receivable? |
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Definition
| Debit Notes Receivable $415.50; credit Accounts Receivable/Carson Tyler $415.50 |
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Term
| Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record the dishonored note receivable? |
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Definition
| Debit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit Notes Receivable $5,000.00 |
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Term
| Mitchell Building Supplies uses the direct write-off method when handling uncollectible accounts receivable. Lark Construction owes $1,200.00 on account. Mitchell Building Supplies determined this account to be uncollectible. Which is the correct entry for writing off this account? |
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Definition
| Debit Uncollectible Accounts Expense, $1,200.00; credit Accounts Receivable/Lark Construction, $1,200.00 |
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Term
| Kitchen Supply Warehouse uses the direct write-off method when handling uncollectible accounts receivable. Coffey's Diner owes $450.00 on account. Kitchen Supply Warehouse determined this account to be uncollectible. Which is the correct entry for writing off this account? |
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Definition
| Debit Uncollectible Accounts Expense, $450.00; credit Accounts Receivable/Coffey's Diner, $450.00 |
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Term
| Maple Tree Candy Factory estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $185,000.00. In the past, actual uncollectible accounts expense has been about 0.5% of total sales on account. What is the estimated uncollectible accounts expense for the year? |
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Definition
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Term
| Pet Food Wholesale estimates its uncollectible accounts expense for the year to be $1,500.00. What is the correct entry to record the estimated uncollectible accounts expense? |
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Definition
| Debit Uncollectible Accounts Expense, $1,500.00; credit Allowance for Uncollectible Accounts, $1,500.00 |
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Term
| Maple Tree Candy Factory estimates its uncollectible accounts expense for the year to be $800.00. What is the correct entry to record the estimated uncollectible accounts expense? |
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Definition
| Debit Uncollectible Accounts Expense, $800.00; credit Allowance for Uncollectible Accounts, $800.00 |
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Term
| Mary Ann's Sewing Notions received a check for $75.00 from Cathy Martin, whose account was previously written off. Mary Ann's Sewing Notions uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Cathy Martin? |
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Definition
| Debit Accounts Receivable/Cathy Martin, $75.00; credit Allowance for Uncollectible Accounts, $75.00 |
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Term
| NC Office Supply has depreciation expense of $7,525.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense? |
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Definition
| Debit Depreciation Expense $7,525.00; credit Accumulated Depreciation $7,525.00 |
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Term
| Creative Art Supplies has depreciation expense of $950.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense? |
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Definition
| Debit Depreciation Expense $950.00; credit Accumulated Depreciation $950.00 |
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Term
| The Style Company signed a one-year, 10%, interest-bearing note for $10,000.00 with First American Bank. What is the journal entry for the issuance of the note payable? |
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Definition
| Debit Cash $10,000.00; Credit Notes Payable $10,000.00 |
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Term
| Sports Warehouse received a payment in the amount of $697.50 for a note receivable. Interest on the note receivable was $47.50. What is the journal entry to record the payment of the note receivable? |
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Definition
| Debit Cash $697.50; Credit Interest Income $47.50; Credit Notes Receivable $650.00 |
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Term
| Master Marketing received a payment of a note receivable in the amount of $1,295.00. Interest on the note receivable was $95.00. What is the journal entry to record the payment of the note receivable? |
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Definition
| Debit Cash $1,295.00; Credit Interest Income $95.00; Credit Notes Receivable $1,200.00 |
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Term
| High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note? |
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Definition
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Term
| Beach Bums Surf Shop signed a 90-day, 5%, interest-bearing note for $3,000.00 with First National Bank. What is the journal entry for the issuance of the note payable? |
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Definition
| Debit Cash $3,000.00; credit Notes Payable $3,000.00 |
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Term
| Sneakers Snack Shop signed a $30,000, 90-day, 8%, interest-bearing note on August 1, 2009. Using a 360-day year, what is the maturity value of the note? |
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Definition
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Term
| Hair Design Supply Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $1,200,000.00. In the past, actual uncollectible accounts expense has been about 2.0% of total sales on account. What is the estimated uncollectible accounts expense for the year? |
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Definition
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Term
| On Your Mark Writing Supplies estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $175,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year? |
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Definition
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Term
| Pet Food Wholesale estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $750,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year? |
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Definition
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Term
| Western Textile Company estimates uncollectible accounts expense by calculating a percentage of total sales on account. Total sales on account for the year are $5,275,000.00. In the past, actual uncollectible accounts expense has been about 1.0% of total sales on account. What is the estimated uncollectible accounts expense for the year? |
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Definition
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Term
| On Your Mark Writing Supplies received a check for $225.00 from Pen & Paper, whose account was previously written off. On Your Mark Writing Supplies uses the Allowance Method for uncollectible accounts. What is the correct entry to re-open the account for Pen & Paper? |
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Definition
| Debit Accounts Receivable/ Pen & Paper, $225.00; Credit Allowance for Uncollectible Accounts, $225.00 |
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Term
| Legal Eagles Law Firm uses the direct write-off method when handling uncollectible accounts receivable. Joe Coffey owes $250.00 on account. Legal Eagles Law Firm determined this account to be uncollectible. Which is the correct entry for writing off this account? |
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Definition
| Debit Uncollectible Accounts Expense, $250.00; Credit Accounts Receivable/Joe Coffey, $250.00 |
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Term
| Steve's Auto Shop uses the direct write-off method when handling uncollectible accounts receivable. John Taylor owes $375.00 on account. Steve's Auto Shop determined this account to be uncollectible. Which is the correct entry for writing off this account? |
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Definition
| Debit Uncollectible Accounts Expense, $375.00; Credit Accounts Receivable/John Taylor, $375.00 |
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Term
| Kitchen Supply Warehouse uses the direct write-off method when handling uncollectible accounts receivable. Coffey's Diner owes $450.00 on account. Kitchen Supply Warehouse determined this account to be uncollectible. Which is the correct entry for writing off this account? |
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Definition
| Debit Uncollectible Accounts Expense, $450.00; credit Accounts Receivable/Coffey's Diner, $450.00 |
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Term
| Hair Design Supply estimates its uncollectible accounts expense for the year to be $4,250.00. What is the correct entry to record the estimated uncollectible accounts expense? |
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Definition
| Debit Uncollectible Accounts Expense, $4,250.00; credit Allowance for Uncollectible Accounts, $4,250.00 |
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