Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 9, Problem 9.11E
To determine
The treatment of borrowing by a company and journal entries of the arrangement.
Given information:
Amount borrowed is $240,000.
Interest payable is 6%.
Repayment obligation is $7,500 at the end of each month.
Collection from accounts receivables during first month is $7,000.
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Which one of the four methods of payments creates an accounts receivable?
Select one:
a. cash in advance
b. open account
c. draft
d. letter of credit
The credit terms of a sale are normally indicated on a(n):
a.check.
b.invoice.
c.bill of lading.
d.purchase order.
NO
1
STATEMENT
If the customer is to pay the shipping charges, the copy of the bill of
indicate amount the customer need to pay.
lading may serve as a
unts receivables is
Chapter 9 Solutions
Intermediate Accounting
Ch. 9 - Prob. 9.1QCh. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3QCh. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...
Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BECh. 9 - Prob. 9.19BECh. 9 - Prob. 9.20BECh. 9 - Prob. 9.21BECh. 9 - Prob. 9.22BECh. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BECh. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - Prob. 9.1ECh. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Write-Offs, Journal Entry....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9ECh. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11ECh. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Prob. 9.4PCh. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Aging of Accounts Receivable, Write-Offs,...Ch. 9 - Disclosure. Using the transactions listed in P9-9,...Ch. 9 - Prob. 9.11PCh. 9 - Prob. 1JCCh. 9 - Prob. 1FSCCh. 9 - Prob. 1SSCCh. 9 - Surfing the Standards Case 2: Costs Associated...Ch. 9 - Prob. 1BCC
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- Journal Entry to Separate Receivables An examination of Hutton Corporations accounting records indicates that all receivables are being recorded in a single account entitled Receivables. An analysis of the account reveals the following: Required: 1. Prepare a journal entry to separate the preceding items into their proper accounts. 2. How would each of the preceding items normally be reflected (current or noncurrent; trade or nontrade receivable) on Huttons balance sheet?arrow_forwardAllowance method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:arrow_forwardWhich of the following documents is issued by a customer to provide information about the nature of a payment made for goods or services? a) A Remittance advice b) A Credit Notec) An Invoiced) A Quotationarrow_forward
- Use the following to answer questions 16 - 19 For each transaction indicate whether it should: A. increase, B. decrease, or C. no effect. Credit sales transaction cycle Asskiabilitstockholders’ equRtøvenespenses 16. Provide services on account 17. Estimate uncollectible accounts 18. Write off accounts as uncollectible 19. Collect on account previously written offarrow_forwardWith the accrual basis of accounting, revenue from a credit sale is recognized Multiple Choice either on the date of the sale or when the amount of the sale is collected. each time a payment on an account balance is received. on the date of the sale. on the date the account is collected in full.arrow_forwardProvide an original example of a transaction and then identify the type receivable - accounts receivable, a note receivable, or other receivables.arrow_forward
- Indicate whether the general ledger accounts will be debited or credited when recording the following entries: Sell goods to a customer for R500 Debtors: DEBIT Debtors: CREDITarrow_forwardDuring the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,000,000 cash The book values and fair values of Miller's assets and liabilities acquired are listed below: Fair Value $ 1,125,000 3, 000, 000 10,625, 000 2, 000, 000 3, 125, 000 Book Value Accounts receivable Inventories Property, plant, and equipment Accounts payable Bonds payable $1, 300, 000 1, 700, 000 8,000, 000 2, 000, 000 3,500, 000 Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the acquisition by Brewer Company.arrow_forwardTotal receivables will remain unchanged for which of the following?* a. Collection of trade accounts receivable b. Assignment of receivables c. Factoring of receivables d. Notes receivable discounting without recoursearrow_forward
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