Quiz Ch 05 – Quick Ratio Numerator Components
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What item is included in the numerator when calculating the quick ratio
What item is included in the numerator when calculating the quick ratio
When a debtor and a creditor have the same note, how would they record it on their respective financial statements?
When is the Uncollectible-Account Expense recorded under the allowance method?
When is the Uncollectible-Account Expense recorded under the direct write-off method?
What type of returns are mutual funds mandated to disclose in published data concerning past performance?
Which measure of returns does NOT incorporate the effect of compounding?
How is revenue recognized in FOB destination shipments?
What is one way to mitigate the risk of uncollectible receivables?
Using the percent-of-sales method, Seidner Company has credit sales of $1,000,000, sales returns and allowances of $10,000, accounts receivable of $560,000, and an allowance for uncollectible accounts (debit) of $42,000 at year-end. What does the debit balance in the allowance for uncollectible accounts indicate?
Smith Company has credit sales of $1,000,000, sales returns and allowances of $10,000, accounts receivable of $560,000, and an allowance for uncollectible accounts (debit) of $42,000 at year-end. Using the percent-of-sales method, if uncollectible accounts were estimated at 1% of credit sales in the prior year and no year-end adjusting entry has been made for Uncollectible-Account Expense, what action should the company take in regards to uncollectible accounts?