1.The Sales Returns and Allowances ﾃつ If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were ﾃつ The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes: ﾃつ With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale ﾃつ On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $200. An age analysis of the accounts receivable produces an estimate of $1,000 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for ﾃつ When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off ofa specific account consists of ﾃつ A firm reported sales of $300,000 during the year and has a balance of $20,000 in its Accounts Receivable account at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for ﾃつ When a firm uses the allowance method to provide for losses, the collecting of an account previously written off as uncollectible requires an entry ﾃつ On December 31, prior to adjustments, the balance of Accounts Receivable is $16,000 and Allowance for Doubtful Accounts has a credit balance of $95. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for ﾃつ The adjusting entry to record accrued interest on a note receivable requires ﾃつ When a company issues a promissory note, the accountant records an entry that includes a credit to Note Receivable for ﾃつ How much interest will accrue on a $20,000 face value, 60-day note that bears interest at 9 percent a year (based on a 360 day year)? ﾃつ Notes payable which are to be satisfied with current assets and are due within one year are usually shown ﾃつ Upon collection of the amount due on a $6,000 face value, 90-day note with interest at 10 percent a year, the Note Receivable account is ﾃつ The balance sheet shows ﾃつ Amounts that a business must pay in the future are known as ﾃつ The income statement shows ﾃつ If liabilities are $4,000 and stockholdersﾃ｢竄ｬ邃｢ equity is $15,000, assets are ﾃつ Assets and liabilities are reported on ﾃつ The rent paid for future months is a (n) ﾃつ Credits are used to record ﾃつ Debits are used to record increases in ﾃつ A firm paid cash to apply against a debt. To record this transaction, the accountant would ﾃつ When charge customers pay cash to apply against their accounts, the amount is recorded ﾃつ The account used to record increases in stockholdersﾃ｢竄ｬ邃｢ equity from the sale of goods or services is ﾃつ Which of the following types of accounts normally have debit balances? ﾃつ Which of the following groups contain only accounts that normally have credit balances? ﾃつ The journal entry to record the sale of services on credit should include ﾃつ The journal entry to record the purchase of equipment for a $100 cash down payment and abalance of $400 due in 30 days would include ﾃつ The journal entry to record the payment of the current month utility bill would include ﾃつ The journal entry to record the payment of dividends for the month is: ﾃつ The journal entry to record the payment of salaries should include ﾃつ On a balance sheet, Accumulated Depreciationﾃ｢竄ｬ窶戲quipment is reported ﾃつ If the prepaid expenses are not adjusted, assets on the balance sheet ﾃつ If long-term assets are not adjusted, expenses on the income statement ﾃつ The entry to replenish a petty cash fund includes ﾃつ On May 1, 20--, a firm purchased a 1-year insurance policy for $1,800 and paid the full premium in advance. The insurance expense associated with this policy for 20ﾃ｢竄ｬ窶拱s ﾃつ To arrive at an accurate balance on a bank reconciliation statement, outstanding checks should be ﾃつ A firm appropriately wrote a check for $78 but entered the amount as payment of $87. On a bank reconciliation statement this error would be shown as ﾃつ The entry to record a purchase of merchandise on credit using a perpetual inventory system Includes ﾃつ A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,000 units were purchased at $9 each. Using FIFO, what is the value of the ending inventory of 3,000 units? ﾃつ A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $16,000 Early in the year, 8,000 units were purchased at $6 each. Using LIFO, what is the value of the ending inventory of 2,000 units? ﾃつ Which of the following is allowed under generally accepted accounting principles? ﾃつ An accountant who records revenue when a credit sale is made rather than waiting for the receipt of cash from the customer is ﾃつ The FASB has concluded that financial reporting rules should ﾃつ Keeping the personal assets of the owner of a business separate from the assets of the firm is an example of ﾃつ Separation of duties refers to separating all of these functions except which of the following? ﾃつ Which of the following is not a control activity? ﾃつ Answer the following questions based upon the information provided in the adjusted trial balance data from the Cameron White Company spreadsheetﾃつfor the year ended December 31. The balance of the Notes Payable account consists of notes that are due within a year. The mortgage extends for more than a year. The beginning Retained Earnings account for the period was $49,000. The ending retained earnings for the period from the statement of retained earnings is $56,150. There were no dividends paid. What is the amount of the net realized value for accounts receivable? ﾃつ What is the amount of the net book value for store equipment? ﾃつ What is the amount of the total current assts? ﾃつ What is the amount of the total plant and equipment? ﾃつ What is the amount of total assets? ﾃつ What is the amount of the total current liabilities? ﾃつ What is the amount of the total long-term liabilities? ﾃつ What is the amount of the total stockholdersﾃ｢竄ｬ邃｢ equity? ﾃつ What is the amount of net income for the period? ﾃつ |
