is the practice of selling a note receivable by the payee before the maturity date of the note. a. Endorsing a note receivable b. Issuing a note receivable. O c. Writing a note receivable. O d. Discounting a note receivable.
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A:
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- 1. What amount was received from the note receivable discounting? a. 4,017,000b. 4,120,000c. 4,103,000d. 3,965,500 2. What amount should be reported as loss on note receivable discounting? a. 40,000b. 23,000c. 17,000d. 20,0004. A note receivable bearing a reasonable interest rate is sold to a bank with recourse. The note receivable discounted account was appropriately credited. The note receivable discounted account should be reported as a. contra asset account for the proceeds from the discounting transaction b. contra asset account for the face amount fo the note receivable c. liability account for the proceeds from the discounting transaction d. liability account for the face amount of the note11-When the note receivable is dishonored the following account is debited. a. Account receivable b. Note receivable c. Interest Revenue . d. Cash
- When the maker pays the full amount due on note receivable on the maturity date it is called as. a. Dishonor of Note receivable b. Un matured payment of Note receivable. c. Honor of Note receivable d. Disposal of Note receivableA note receivable is dishonoured on the maturity date. The journal entry to record the same in the accounts is. a. Dr Cash Cr Note receivable Cr Interest receivable b. Dr Accounts receivable Cr Note receivable Cr Interest revenue c. Dr Note receivable Cr Interest revenue Cr Cash d. Dr Cash Cr Accounts receivable Cr Interest revenueD2. The company gave its $50,000 note receivable to a bank for collection. The note is not paid on maturity. Bank returned the note. The note proved to be uncollectible. journalize that.
- 1. This is the criterion to determine whether the transfer is accounted for as borrowing._______________ 2. What account to debit if the company pays a delinquent notes receivable that was previously discounted._______________ 3. What account to credit if the customer’s notes receivable become delinquent and was not previously discounted._______________ 4. When accounts receivable is factored, the accounts payable shall be credited. True or False?_______________ 5. The interest on a non-interest bearing note is equal to its discount amount._______________ 6. The practice of realizing cash from accounts receivable before its maturity date is widespread. Defalcation is one of them. True or False?_______________ 7. A 120-day, 10% interest-bearing note receivable is sold to a bank with recourse after being held for 60 days. The proceeds are calculated using an 8% interest rate. In this situation, what happened to the notes receivable?_______________ 8. On January 1, an entity received a…46.The entry to record the dishonor of a note receivable assuming the payee expects eventual collection includes a debit to a. Cash b. Notes Receivable c. Accounts Receivable d. Allowance for Doubtful Accounts7. Accompanying the bank statement was a credit memorandum for a short-term, noninterest-bearing note collected by the bank. What entry is required in the depositor’s accounts?a. Debit Cash; credit Miscellaneous Incomeb. Debit Cash; credit Notes Receivablec. Debit Accounts Receivable; credit Cashd. Debit Notes Receivable; credit Cash 8. On January 1, 2020, Point Luna Corporation sold inventory costing P1,800,000 with a list price of P2,200,000 and a cash price of P2,000,000 in exchange for a P2,400,000 noninterest-bearing note due on December 31, 2022. How much is the initial measurement of the receivable?a. 1,800,000b. 2,200,000 c. 2,000,000 d. 2,400,000 9. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2023. The prevailing rate of interest for this type of note is 12%. How much is the…
- QUESTION 1 The interest deducted in advance from the face valueof a non-interest bearing notes payable is/are called: a bankdiscount. proceeds. interest payable. interest receivable. QUESTION 2 The normal balance of the Notes Receivable accountis: credit. debit. nominal. income. QUESTION 3 When the due date of a note extends beyond one year, it becomes a:long-term liability. current liability. short-term liability.current asset. QUESTION 4 Mr. Robert signed a120 day, 10% note with First Federal State Bank for $12,000 onAugust 5th. What will be the maturity date of the note? December3rd December 4th November 30th December 2nd QUESTION 5 What will the maturity value of a note payable be if theprincipal is $15,000, the interest rate is 8%, and the term is 60days? $15,197.26 $14,802.74 $15,000 $197.26 QUESTION 6 Jacob borrowed $20,000 for 30 days at 5% from SkyBank.What will be the interest amount? $20,000 $82.19 $19,917.80$20,082.19 QUESTION 7 Match the terms incolumn I with the…1) When all of the cash for an account previously written off under the direct write-off method is unexpectedly collected, the correct entry is: a.dependent on the period in which the cash was collected. b.debit Bad Debt Expense and credit Accounts Receivable. c.debit Accounts Receivable and credit Bad Debt Expense. d.debit Cash and credit Accounts Receivable. 2) To the maker of a note, the note is a(n) ___________________ . a. note payable b. note receivable c. account receivable d. account payable 3) Under the perpetual inventory method, when inventory is purchased, Merchandise Inventory a. and Accounts Payable are debited and Cash is credited. b. is debited and Cash or Accounts Payable is credited. c. is credited and Cash or Accounts Payable is debited. d. and Accounts Payable are credited and Cash is debited.Which of the following will increase the balance of accounts receivable? Group of answer choices Note discounted was dishonored by issuer at due date. Receipts of notes receivable as settlement of outstanding customer account. Sale of goods for cash. Collection of outstanding receivables.