91. The amount due on the date of maturity for a $6,000, 60-day, 8%, note receivable is:
A. $6,000
B. $6,480
C. $5,520
D. $6,080
E. $5,920
92. Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the sales portion of the transaction is:
A.
Accounts Receivable
|
5,000
|
|
Sales
|
|
5,000
|
B.
Notes Receivable
|
5,000
|
|
Sales
|
|
5,000
|
C.
Accounts Receivable
|
5,125
|
|
Sales
|
|
5,125
|
D.
Notes Receivable
|
5,125
|
|
Sales
|
|
5,125
|
E.
Notes Receivable
|
5,000
|
|
Interest Receivable
|
125
|
|
Sales
|
|
5,125
|
93. MixRecording Studios purchased $7,800 in electronic components from TechCom. MixRecording Studios signed a 60-day, 10% promissory note for $7,800. TechCom's journal entry to record the sales portion of the transaction is:
A.
Accounts Receivable
|
7,800
|
|
Sales
|
|
7,800
|
B.
Accounts Receivable
|
7,930
|
|
Sales
|
|
7,930
|
C.
Notes Receivable
|
7,800
|
|
Sales
|
|
7,800
|
D.
Notes Receivable
|
7,930
|
|
Sales
|
|
7,930
|
E.
Notes Receivable
|
7,800
|
|
Interest Receivable
|
130
|
|
Sales
|
|
7,930
|
94. Wallah Company agreed to accept $5,000 in cash along with an $8,000, 90-day, 13.5% note from customer Judith Klemper to settle her $13,000 past-due account. How should Wallah record this transaction?
A.
Accounts Receivable – J. Klemper
|
13,000
|
|
Note Receivable
|
|
8,000
|
Cash
|
|
5,000
|
B.
Note Receivable
|
8,000
|
|
Sales
|
|
8,000
|
C.
Cash
|
5,000
|
|
Note Receivable
|
8,000
|
|
Sales
|
|
13,000
|
D.
Cash
|
5,000
|
|
Note Receivable
|
8,000
|
|
Account Receivable – J. Klemper
|
|
13,000
|
E.
Sales
|
13,000
|
|
Note Receivable
|
|
8,000
|
Cash
|
|
5,000
|
95. When the maker of a note honors a note this indicates that the note is:
A. Signed
B. Paid in full
C. Guaranteed
D. Notarized
E. Cosigned
96. Failure by a promissory note's maker to pay the amount due at maturity is known as:
A. Protesting a note
B. Closing a note
C. Dishonoring a note
D. Discounting a note
E. Depreciating a note
97. Teller, a calendar year company, purchased merchandise from TechCom on October 17 of the current year. TechCom accepted Teller's $4,800, 90-day, 10% note as payment. What entry should TechCom make on January 15 of the next year when the note is paid, assuming an adjusting entry for interest was made for interest on December 31?
A.
Notes Receivable
|
4,800
|
|
Interest Receivable
|
120
|
|
Sales
|
|
4,920
|
B.
Cash
|
4,920
|
|
Notes Receivable
|
|
4,920
|
C.
Cash
|
4,920
|
|
Interest Revenue
|
|
100
|
Interest Receivable
|
|
20
|
Notes Receivable
|
|
4,800
|
D.
Cash
|
4,920
|
|
Interest Revenue
|
|
20
|
Interest Receivable
|
|
100
|
Notes Receivable
|
|
4,800
|
E.
Cash
|
4,920
|
|
Interest Revenue
|
|
120
|
Notes Receivable
|
|
4,800
|
98. Temper Company has credit sales of $3.10 million for year 2013. Temper estimates that .9% of the credit sales will not be collected. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222. Temper prepares a schedule of its December 31, 2013, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:
December 31, 2013Accounts Receivable
|
Age of Accounts
Receivable
|
Expected Percent Uncollectible
|
$620,000
|
Not yet due
|
1.05
|
%
|
248,000
|
1 to 30 days past due
|
1.80
|
|
49,600
|
31 to 60 days past due
|
6.30
|
|
24,800
|
61 to 90 days past due
|
31.75
|
|
4,960
|
Over 90 days past due
|
66.00
|
|
|
|
|
|
|
Assuming the company uses the aging of Accounts Receivable method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $25,246.40
B. $27,468.40
C. $23,024.40
D. $27,900.00
E. $24,420.40
99. Temper Company has credit sales of $3.10 million for year 2013. Temper estimates that .9% of the credit sales will not be collected. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222. Assuming the company uses the percent of sales method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $25,246.40
B. $27,468.40
C. $23,024.40
D. $27,900.00
E. $24,420.40
100. Temper Company has credit sales of $3.10 million for year 2013. Accounts Receivable total $947,360 and the company estimates that 2% of accounts receivable will remain uncollectible. Historically, .9% of sales have been uncollectible. On December 31, 2013, the company’s Allowance for Doubtful Accounts has an unadjusted debit balance of $2,575. Temper prepareda schedule of its December 31, 2013, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:
December 31, 2013Accounts Receivable
|
Age of Accounts
Receivable
|
Expected Percent Uncollectible
|
$620,000
|
Not yet due
|
1.05
|
%
|
248,000
|
1 to 30 days past due
|
1.80
|
|
49,600
|
31 to 60 days past due
|
6.30
|
|
24,800
|
61 to 90 days past due
|
31.75
|
|
4,960
|
Over 90 days past due
|
66.00
|
|
|
|
|
|
|
Assuming the company uses the percent of accounts receivable method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?
A. $18,947.20
B. $16,372.20
C. $23,024.40
D. $27,900.00
E. $21,522.20