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Accounting- Grade 12 > Chapter 9- Accounts Receivables > Flashcards

Chapter 9- Accounts Receivables Flashcards

0
Q

What is the journal entry to record the allowance method for a possibility of bad debts?

A

Bad Debts Expense

Allowance 4DA

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1
Q

What is the journal entry for the direct write off of an A/R?

A

Bad Debts Expense

Accounts Receivable

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2
Q

What is the journal entry for the allowance method when bad debts is certain?

A

Allowance 4DA

A/R

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3
Q

What is the journal entry to reinstate an accounts receivable?

A

A/R

Allowance 4DA

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4
Q

What are the two methods to estimate bad debts?

A

Percentage of Sales, Percentage of Receivables

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5
Q

How do you use the percentage of sales method?

A

Total sales x the percentage given

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6
Q

How do you use the percentage of receivables method?

A

Total the amounts from each column using the percentages given and then subtract the existing amount from the A4DA account

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7
Q

What could a company do to receive cash faster?

A

Sell to a factor/make credit card sales

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8
Q

What credit cards are treated as cash sales by retailers?

A

Visa and Mastercard

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9
Q

How do you calculate the interest of a notes payable?

A

Face value of note x annual interest rate x time(in terms of one year)

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10
Q

How do you calculate the acid test ratio?

A

[Cash+temporary investments+net receivables] / Current liabilities

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11
Q

How do you calculate the receivables turnover ratio?

A

Net sales/average net receivables

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12
Q

How do you calculate the collection period?

A

365/receivables turnover ratio

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13
Q

What is the journal entry to record a company credit card sale?

A

Accounts receivable

Sales

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14
Q

What is the journal entry to record a bank credit card sale?

A

Cash
Credit Card Fee
Sales

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15
Q

What is the journal entry to record a non-bank credit card sale?

A

Accounts Receivable
Credit Card Fee
Sales

16
Q

What is the journal entry to record the honouring of a notes receivable?

A

Cash
Notes Receivable
Interest Revenue

17
Q

What is the journal entry to record a dishonouring of notes receivable but it is expected to be collected in the future?

A

Accounts Receivable
Notes Receivable
Interest Revenue

18
Q

What is the journal entry to record the dishonouring of a notes receivable and it is not expected to be collected

A

Allowance 4DA

Notes Receivable

Accounting- Grade 12 (16 decks)

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