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When an account receivable that has been written off is subsequently collected, that account receivable must be reinstated and the cash collection recorded. A. True. B. False. 14. 15. What is the type of account and normal balance of Allowance for Doubtful Accounts? A. Liability, credit. B. Revenue, credit. C. Contra asset, credit. D. Contra asset, debit. 16. The difference between accounts receivable and allowance for doubtful account is called net realizable value. A. True. B. Falsc. 17. The account receivable turnover measures: A. The relation of cash sale to credit sales. B. How long it takes to sell merchandise inventory C. The length of time the accounts receivable have been outstanding. D. How frequently during the year the accounts receivable are being converted to cash. 18. The main difference between accounts receivable and notes receivable is that a note receivable is written and more legalistic. A. True. B. False. 19. On which of the following dates does a 90-day note dated November I mature? A. January 29. B. January 30. C. January 31 D. February 01. what is the total interest on a 60 lay, 10% note for S30 0007 (Use a 360 day year.) A. $300. B. $500. C. $1,000. D. $3,000. 20 21. A characteristic of a fixed asset is A. Useful lives extend over more than one accounting period. B. Used in the operations of a business. C. Tangible in nature. D. All of the above

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