Accounts receivable and payable quiz

1. 1.A supplier statement shows a bill you haven't recorded. You should:

   Ignore itRecord it as revenuePay it without recordingObtain the bill and record it in the correct period
2. 2.Under the allowance method, writing off a specific $200 account:

   Dr Bad Debt Expense, Cr Accounts ReceivableDr Accounts Receivable, Cr AllowanceNo entryDr Allowance, Cr Accounts Receivable
3. 3.A customer pays $1,000 toward a $2,500 invoice. Afterwards Accounts Receivable for that invoice is:

   $2,500$3,500$0$1,500
4. 4.Match each transaction to the account debited.

   Customer returns goods (on account)Choose…Sales Returns and AllowancesAccounts PayableBad Debt ExpenseCashPay supplier billChoose…Sales Returns and AllowancesAccounts PayableBad Debt ExpenseCashEstimate bad debtsChoose…Sales Returns and AllowancesAccounts PayableBad Debt ExpenseCashCollect from customerChoose…Sales Returns and AllowancesAccounts PayableBad Debt ExpenseCash
5. 5.A credit note issued for returned goods:

   Increases revenueIs recorded as an expenseRequires cash to moveReduces what the customer owes
6. 6.Writing off an account under the allowance method changes net receivables by:

   The written-off amountDouble the amountIt depends on cashNothing
7. 7.The sales discount in a 2/10 payment is recorded as:

   A credit to Sales RevenueInterest ExpenseLeft open in Accounts ReceivableA debit to Sales Discounts (contra revenue)
8. 8.Before paying a supplier, a common control is:

   Paying from the supplier's statementSkipping approval for small billsPaying every bill immediatelyMatching the bill to the order and delivery
9. 9.An aging report groups receivables by:

   Customer ageInvoice amountProduct typeHow long invoices have been outstanding
10. 10.Sales tax charged on an invoice is credited to:

    Service RevenueTax ExpenseAccounts ReceivableSales Tax Payable
11. 11.A supplier account with a debit balance usually means:

    Normal activityUnrecorded revenueA bad debtAn overpayment or duplicate payment
12. 12.Reinstating a previously written-off account that the customer will now pay:

    Dr Cash, Cr Bad Debt ExpenseNo entry until cash arrivesDr Allowance, Cr Accounts ReceivableDr Accounts Receivable, Cr Allowance
13. 13.Buying inventory on account (perpetual) is recorded as:

    Dr Purchases Expense, Cr CashDr Accounts Payable, Cr InventoryDr Cost of Goods Sold, Cr Accounts PayableDr Inventory, Cr Accounts Payable
14. 14.A $5,000 merchandise bill is paid within 2/10 terms under a perpetual system. What amount is credited to Inventory?

    Your answer (dollars)
15. 15.A $3,000 invoice is paid within the discount period on 2/10, net 30. How much cash is received?

    Your answer (dollars)
16. 16.Terms 2/10, net 30 mean:

    Pay 2% interest after 10 daysPay in two installments10% discount within 2 days2% discount if paid within 10 days; otherwise full amount due in 30

Explanations for every option appear after you submit. Accounts receivable and payable quiz is self-practice, not a proctored test.