TEST ACCT

Eli company sells novelty items and offers terms of 1/10 and n/30 to credit customers one customer Faulkner Inc. purchased 100 sweet 16 party decor packs with a list price of $20 each on March 5, 2019 referred to the information provided for Eli company if the customer pays the invoice on March 31, 2013 how much sales discount will Eli company recognize.

$-0-

Refer to A1 construction if the aging approach is used to estimate bad that's what amount should be recorded as bad debt expense

27100. Bottom ones the one above. Write off uncollected

Action signs recorded credit sales of 10,000 on the gross method terms are 2/20 and n/30 select the correct statement about the entry to record the sale

Accounts receivable increases $10000

Refer to the A-to-Z events what are the effects on the accounting equation when the company makes this adjustment to record bad debt expense using the allowance method

Assets and stockholders equity decrease.

A company using a periodic inventory system must total of the selling prices of the units on hand at the end of the of the period in order to value the ending inventory.

False

During periods of stable purchase prices, FIFO produces the highest ending inventory relative to the other inventory costing methods

False

If a company estimates it's bad debt expense on the basis of a receivables aging the balance and the allowance for doubtful accounts account will not affect the amount of the end of period Adjusting entry for bad debts

False

If a company excepts a major credit card such as visa from a customer and the company is responsible for the amount of the sale and a case of non-payment from a card holder

False

Selling on credit protects a company from the risk that some of its receivables will never be collected

False

The lender of a no recognizes a note payable on the balance sheet and interest expense on its income statement

False

The weighted average cost is calculated by adding the units cost from each purchase and then dividing by the number of purchases.

False

During periods of declining purchase prices LIFO produces the lowest amount of ending inventory relative to the other inventory cost and methods

False.

What effects on a retail stores accounting equation occur when it records merchandise purchased for cash assuming the use of a perpetual inventory system?

No net effect.

The following journal entry was included in the accounting records of Jensen Corp. October 15 accounts payable 4000 merchandise inventory 40 cash 3960 based on this information it is likely that the company

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

A primary advantage of the allowance method to account for bad debts is that it supports the matching principal

True

Accounts receivable are shown on the balance sheet at their net realizable value

True

Cost of goods sold is the difference between cost of goods available for sale and ending inventory

True

D accounts receivable turnover ratio is used to evaluate how well the company does in collecting its account receivable

True

For a merchandising company, the cost of goods sold is subtracted from net sales to arrive at gross profit

True

Alco roofing companies beginning accounts receivable or 200,000 and ending accounts receivable were 270,000 during the period credit sales total to 570,000 how much cash was collected from customers

570000 - (270000-200000) 500000

Harris corporation sold merchandise to ichay company on December 28, 2019 with shipping terms of FOB destination the buyer received the merchandise on January 3, 2020 which of the following is true?

The buyer should record a liability for the purchase on January 3, 2020.

The difference between FIFO LIFO and average cost methods is that each of these methods of inventory costing makes a specific assumption about the flow of costs

True

The lender of a no recognizes a note receivable on the balance sheet and interest revenue on its income statement

True

Under the periodic inventory system a physical inventory must be taken to determine cost of good sold.

True

The weighted average cost per unit must be continually updated under the perpetual inventory system.

True.