121. A 60-day, 12% note received from a customer for $50,000, dated May 15, is endorsed to the bank on May 25, and the bank discounts the note at 15%. If the note is dishonored by the maker and the bank charges a $20 protest fee, what is the amount payable to the bank on July 14?
A. $51,000
B. $51,020
C. $56,020
D. $50,000
122. A 90-day, 12% note for $20,000, dated September 10, is received from a customer on account. If the note is discounted at 15% on October 10, the due date is
A. December 9
B. December 10
C. December 11
D. December 8
123. A 90-day, 12% note for $20,000, dated April 10, is received from a customer on account. If the note is discounted at 15% on May 20, the days in the discount period are
A. 50
B. 90
C. 120
D. 40
124. When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, a major difference is that the direct method
A. uses a percentage of sales method to estimate uncollectible accounts.
B. is used primarily by large companies with many receivables.
C. is used primarily by small companies with few receivables.
D. uses an allowance account.
125. When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, which entry would not be found under the allowance method?
A. Bad Debt Expense 500
Allowance for Doubtful Accounts 500
B. Bad Debt Expense 500
Accounts Receivable - Bob Smith 500
C. Cash 300
Allowance for Doubtful Accounts 200
Accounts Receivable - Bob Smith 500
D. Cash 500
Accounts Receivable - Bob Smith 500
126. When comparing the direct write-off method and the allowance method of accounting for uncollectible accounts, the entry to reinstate a previously written off accounts under the allowance method would include:
A. A credit to Bad Debt Expense
B. A debit to Bad Debt Expense
C. A debit to Allowance for Doubtful Accounts
D. A credit to Allowance for Doubtful Accounts
127. Other than accounts receivable and notes receivable, name other receivables that might be included in the general ledger.
128. If sales personnel are allowed to approve customer credit, how might the cost of approving poor credit risk be controlled?
129. On March 31st the company determines that it needs to recognize $1,950 in uncollectible accounts expense based on an evaluation of accounts receivable. Journalize this recognition.