Mounder Corp

question 90

Multiple Choice

Mounder Corp. charges interest on its past due accounts receivable. A late fee of 18% per annum is added to each past due account. Mounder is preparing financial statements for the month of July and has determined there are $18,000 in past due accounts. Mounder should make an adjusting entry as follows

• A) Debiting Late Fee Revenue for $270 and crediting Accounts Receivable for $270.
• B) Debiting Accounts Receivable for $270 and crediting Late Fee Revenue for $270
• C) Debiting Late Fee Revenue for $3,240 and crediting Late Fee Receivable for $3,240.
• D) Crediting Late Fee Payable for $270 and debiting Late Fee Expense for $270.

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Definitions:

Dual Processing

a psychological concept that suggests the brain operates using two different systems or processes: one that is fast, automatic, and emotional, and another that is slower, deliberate, and logical.

Appearance-Reality Tasks

Cognitive tasks that assess a child's ability to understand that the appearance of an object can be misleading and different from its reality.

Dual Encoding

The process of representing information in more than one form, typically both visual and verbal, to enhance memory retention.

Fine Motor

Refers to the skills involving the coordination of small muscles in movements, particularly involving the hands and fingers, such as holding a pencil or tying shoelaces.