121.Current assets are usually listed in order
a.of the due date
b.of the size
c.alphabetically
d.of liquidity
122.The accounts receivable turnover measures
a.how frequently during the year the accounts receivable are converted to cash
b.the number of days of accounts receivable outstanding
c.the fair market value of accounts receivable
d.the efficiency of the accounts payable function
123.The number of days' sales in receivables
a.is an estimate of the length of time the receivables have been outstanding
b.measures the number of times the receivables turn over each year
c.is net credit sales divided by average receivables
d.is not meaningful and therefore is not used
124.Given the following information, compute accounts receivable turnover:
Gross sales
|
$150,000
|
Accounts receivable, beginning of year
|
$18,000
|
Sales
|
135,000
|
Accounts receivable, end of year
|
22,000
|
a. 6.75
b. 7.50
c. 6.13
d. 6.82
125.At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accountshas a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimatesuncollectible receivables as $25,000.
Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance ofDoubtful Accounts, respectively.
a. $19,500 and $25,000b. $30,500 and $525,000
c. $19,500 and $525,000d. $30,500 and $25,000
126.At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accountshas a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimatesuncollectible receivables as $25,000.
Determine the net realizable value of accounts receivable after adjustment.
(Hint: Determine the amount of theadjusting entry for bad debt expense and the adjusted balance of Allowance of Doubtful Accounts.)
a. $550,000b. $544,500
c. $525,000d. $575,000