Acct test #3
Transportation-in is
part of the net cost of purchases, and ultimately part of cost of goods sold
Which one of the following is an accurate description of the Allowance of Doubtful Accounts?
Contra-Asset Account
Refer to the information provided for Aaron Corporation. Calculate the Cost of Goods Sold
105,500
On december 2013 the accounts receivable balance was 50,000 and the balance in the allowance doubtful accounts was 5,000. That morning a 1,000 uncollected account was written-off. The net realizable value of accounts receivable immediately after the write-off is
45,000
Which inventory cost flow method assigns the same cost to all units whether sold or left in ending inventory?
specific identification
Refer to the information provided for Stallworth Corp. If the company uses the weighted average cost method, the cost assigned to each unit in ending inventory would be
$15.11
Refer to Accelerated Solutions. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt for 2013
25,000
The following information is available for ALl Care Nursing Supply for fiscal year ending December 31, 2013. Calculate the Accounts Receivable Turnover Ratio:
3
Refer to the info provided for the Pham Enterprises.What is the companies gross profit ratio for 2013?
33.44%
Refer to the info provided for Pham Enterprises. What is the company's inventory turnover ratio for 2013?
6.108
Refer to accelerated soultions, What is the balance of accounts receivable at december 21, 2013
690,000
If a company uses the allowance method to account for doubtful accounts, when will the company's Stockholder's equity decrease?
At the end of the accounting period when an adjusting entry for bad debts is recorded
If a company understates its inventory, what are the effects on cost of goods sold and net income for the current year?
Both cost of goods sold are net income will be understated
The college store accepts MasterCard for payments of purchase made by students. Mastercard charges a 1.55% collection fee to the merchant. Credit card sales totaling 10,000 are made during August. Recording these sales transactions will result in an increase in
Credit Card Fee Expense for $155
During a period of increasing purchase prices, which inventory costing method will yield the lowest cost of goods sold
FIFO
Refer to the information provided for Satoor Inc. When the buyer records the payment on July 15th, its journal entry will include
a decrease to accounts payable for 15,000
The amount recognized on the balance sheet as the cost of inventory will ultimately be recognized on the income statement as
cost of goods sold
Refer to Academy Grill Supply. If the company's year ends December 31, 2013, an adjusting entry is needed to
increase notes receivable by $2,250
At the year-end inventory count, if goods in transit are shipped FOB shipping point, they should be included in the inventory count of
the buyer
Refer to the information provided for Stallworth Corp. If the company uses LIFO inventory cost method, the cost of goods sold for November would be
$1517.50
On January 2, Alferedo Corp sold merchandise with a gross price of 100,000 to a customer with of 2/10, n/30. How much Sales Discounts would be recorded if payment was received from the customer Jan 8? Assume the company uses the Gross Method of recording receivables
$2,000
Refer to the information provided for Stallworth Corp. If the company uses the FIFIO inventory costing method, the amount assigned to the November 30th (ending) inventory would be
$2,121.50
Refer to A&B Foods. If the company estimates its bad debts at 4% of net credit sales, what amount will be reported as bad debt expense for 2013?
$84,000
Refer to the information provided for satoor Inc. When did title to the merchandise transfer from the seller to the buyer?
July 7
which allowance method approach is considered to be an income statement approach to estimation bad debts?
The percentage of net credit sales approach
