Accounting 120

Sassy Saxophones has the following inventory data... Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis?

(A) $18,320

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry

(A) Accounts Receivable Cash

If a check correctly written and paid by the bank for $628 is incorrectly recorded on the company's books for $682, the appropriate treatment on the bank reconciliation would be to

(A) add $54 to the book's balance

Under the allowance method, writing off an uncollectible account

(A) affects only balance sheet accounts

A very small company would have the most difficulty in implementing which of the following internal control activities?

(A) separation of duties

On January 15, Nifty Company sells merchandise on account to Martinez Associates for $5,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $1,000 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?

(B) $3,880

When an account becomes uncollectible and must be written off

(B) accounts Receivable should be credited

Inventory costing methods place primary reliance on assumptions about the flow of

(B) costs

An aging of an company's accounts receivable indicates that $9,00 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3,200 credit balance, the adjustment to record bad debts for the period will require a

(B) debit to bad expense for $12,200

For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation?

(B) deposit of $600 recorded by the bank as $60

A debit balance in the Allowance for Doubtful Accounts

(B) indicates that actual bad debt write offs have exceeded previous provisions for bad debts

Baker Company just began business and made the following four inventory purchases in June... A physical count of merchandise inventory omniscience's June 30 reveals that there are 210 units on hand. Using FIFO inventory method, the amount allocated to ending inventory for June is

(C) $1,824

Olympus Climbers Company has the following inventory data... A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the FIFO inventor method, the amount allocated to cost of goods sold for July is

(C) $2,010

Trumpeting Trumpets has the following inventory data... Assuming that a period inventory system is used, what is the cost of goods sold on a FIFO basis?

(C) $38,480

An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance of Doubtful Accounts has a $2,400 credit balance, the adjustment to record bad debts for the period will require a

(C) debit to Bad Debt Expense for $6,600

When an account is written off using the allowance method, accounts receivable

(C) decreases and the allowance account decreases

Under the allowance method, Bad Debt Expense is recorded

(C) for an amount that the company estimates it will not collect

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when

(C) management estimates the amount of uncollectibles

Charlene Cosmetics Company just began business and made the following four inventory purchase in June... A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is

(D) $1,680

Quiet Phones Company has the following inventory data... A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is

(D) $2,070

Wilton sells softball equipment. On November 14, they shipped $4,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received they an order from Douglas High School for $2,400 worth of custom printed bats to be produced in December. ON November 30, Paola Middle School returned $400 of defective merchandise. Wilton has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?

(D) $3,600

Piper Pipes has the following inventory data... Assuming that a periodic inventory system is used, what is the cost of goods sold on a LIFO basis?

(D) $38,530

When using the balance sheet approach, the balance in Allowance for Doubtful Accounts must be considered prior to the end of period adjustment when using which of the following methods?

(D) Allowance method

The account Allowance for Doubtful Accounts is classified as a(n)

(D) contra account to Accounts Receivable

Of the following companies, which one would not likely employ the specific identification method for inventory costing?

(D) music store specializing in organ sales