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Exam (elaborations)

Accounting Wiley Plus Exam #3 questions with complete solutions

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The receivable that is usually evidenced by a formal instrument of credit is a(n) correct answer: note receivable Interest is usually associated with correct answer: notes receivable Two methods of accounting for uncollectible accounts are the correct answer: Direct write off and Allowance method. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a correct answer: debit to bad Debts expense and a credit to Allowance for Doubtful Accounts. When an account is written off using the allowance method, accounts receivable correct answer: decreases and the allowance account decreases. The two key parties to a promissory note are the correct answer: maker and the payee. The maturity value of a $40,000, 12%, 3-month note receivable is correct answer: $41,200. The accounts receivable turnover is computed by dividing correct answer: net credit sales by average receivables.

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