ACC 308 Week 8 Final Exam (SNHU)
What is the correct entry received on that date?
The allowance for uncollectible accounts is a:
Interest expense is:
Bonds usually sell at their:
In each succeeding payment on an installment note:
At what amount would Reagan record the leased asset at inception of the agreement?
Crystal must have a(n):
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.
At the end of 2012, accounts receivable were $594,000 and the allowance account had a credit balance of $58,000. Accounts receivable activity for 2013 was as follows:
Blanton Plastics, a household plastic product manufacturer, borrowed $9 million cash on October 1, 2013, to provide working capital for year-end production. Blanton issued a four- month, 15% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’s fiscal period is the calendar year.
On January 1, 2013, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: