A3

Paid for inventory purchased on credit, and took advantage of a 1% purchase discount

At the year-end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of:

The seller

At the year-end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of:

$37,600

A company had sales of $40,000, sales discounts of $800, sales returns of $1,600, and commissions owed to sales people of $600. Compute net sales

$103,000

Refer to A&B Foods. If the company uses 4% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment of bad debts?

No effect on overall assets or stockholder's equity

Refer to A2Z Events. What are the effects on the accounting equation when the company writes off a bad debt under the allowance method?

$24,500

Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for 2012?

$25,000

Refer to AT&U Company. If the company uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2012?

The company may offer sales discounts to shorten the collection period

Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?

$144,500

Refer to the information provided for Aaron Corporation. Calculate gross margin.

$105,500

Refer to the information provided for Aaron Corporation. Calculate the Cost of Goods Sold.

Companies sometimes choose FIFO because it presents a more realistic income statement in terms of current market values

Which of the following statements is false regarding the choice between alternative inventory costing methods?

A cost of goods sold account is updated after each sale of merchandise under the periodic inventory system

Which of the following statements is false?

Contra Account

Which one of the following is an accurate description of the Allowance for Doubtful Accounts?

$143,000

A company's accounts receivable balance after posting net collections from customers for 2012 is $150,000. Management feels that uncollected accounts should be based on the following aging of accounts receivable and uncollected percentages. There are $100,000 that are 1-30 past due at 2% and $50,000 that are 31 to 60 days past due at 10%. The net realizable value of the accounts receivable is

Retail cost

All of the following are acceptable for financial accounting purposes EXCEPT:

$1,200,000

Beginning accounts receivable were $200,000 and ending accounts receivable were $300,000. Assuming cash collections totaled $1,100,000, what were credit sales?

$9,000

Bihary Company has a beginning balance in its inventory account of $2,250 and the ending balance is $1,500. Cost of Goods Sold is $9,750. According to the Cost of Goods Sold model, what was the amount of inventory purchased during the year?

Revenues - COGS

How do we find Gross Margin?

$1,823.75

Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

$1,811.75

Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, ending inventory at June 30th is:

The difference between the recorded value of accounts receivable and the net realizable value of accounts receivable

The Allowance for Doubtful Accounts represents:

The cost of goods available for sale less ending inventory

The Cost of Goods Sold is equal to:

Notes receivable generally specify an interest rate and a maturity date at which any interest and principle must be repaid

What is the distinguishing characteristic between accounts receivable and notes receivable?

The percentage of net credit sales approach

Which allowance method approach is considered to be an income statement approach to estimating bad debts?

FIFO

Which inventory cost flow method assigns the cost of the most recent items purchased to ending inventory?

part of the net cost of purchases

Transportation-in is: