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.

---

Definitions:

Relevance Test

An assessment to determine the applicability or importance of information, data, or research findings to a specific context or decision-making process.

SWOT Analysis

An assessment tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives, focusing on long-term strategic direction.

Specific

Clearly defined or identified; precise or exact.