2
What amount should the company recognize as interest revenue on December 31, 2012?
$2,000
If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for 2012?
$24,300
A company needs to record 6 month.............. 11%.........payable. How much....?
$660
A company had sales of $39,400, sales discounts of $800, sales returns of $1,600 and commissions to sales people of $600. Compute net sales.
$37,000
A company receiving payment of a $20,000 accounts receivable within 10 days with terms of 2/10, a/30, would record a sales discount of
2% of $20,000
The following information is available for All Care Nursing Supply for fiscal year ending on December 31, 2012. Calculate the Accounts Receivable Turnover Ratio.
3
Which of the following statements best describes the term "Outstanding Check" from a company's point of view?
A check written by the company but not yet presented to the bank for payment.
Which one of the following is an
A= creative accountant
While preparing a bank reconciliation, which of the following items would be subtracted from the balance per the company records
Bank service charges
During the bank reconciliation process, an accountant identified an error. A check written for $40 to pay a supplier for goods purchased on credit was ... recorded in the company's records for $400. Which of the following entries would correct the error?
Cash 360 Accountants Payable 360
All of the following are true for a company that uses the allowance method of accounting for bad debts, EXCEPT:
It records bad debt expense each time an account is determined to be uncollectible
Which of the following would NOT appear on a bank statement for a checking account?
Outstanding checks
Which allowance method approach is considered to be an income statement approach to estimating bad debts?
The percentage of net credit sales approach
How will the lender of the promissory note record the note on its book?
The promissory note will be recorded as an asset
A reduction in the price granted by the seller for a particular class of customers is called a
Trade discount
What amount should the company recognize as interest revenue on the inventory date of the...?
$1,000
While preparing the February 28th bank reconciliation, the accountant identified the following items...... What is the company's adjusted cash balance on February 28th?
$22,225
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?
$25,000 45,000 - 20,000 = 25,000
If the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the Doubtful Accounts account after the adjustment for bad debts?
$69,000
While preparing a bank reconciliation, which of the following items would be subtracted from the balance per the bank statement?
Outstanding checks
Which of the following statements is true regarding the two allowance procedures used to estimate bad debts?
The aging of accounts receivable method takes into account the existing balance in the Allowance for Doubtful Accounts account.
A customer's check for $25 that had been deposited into the company's checking account the....."NSF" by the bank. Which of the following journal entries is required?
Accounts Receivable 25 cash 25
A credit memo appeared on the September bank statement. How should this amount be treated on the September Bank reconciliation?
Add it to the company's balance
If a company uses the direct ... off method of accounting for bad debts
B= It will record bad debt expenses .. where the account is determined to be un...
Each of the following
C= Payments should be exp... in order
Which of the following items would not be a reconciling item on a bank reconciliation?
Canceled checks
The account which records differences between amounts of each deposited and amounts from the .. register tapes is called
Cash Over and Short
Which of the following ......
D = When the petty cash fund needs to be replenished, an entry is recorded to recognize an increase in the petty cash...
What is the distingushing characteristics
D=
Cash collected and recorded by a company but not yet reflected in a bank statement is known as
Deposits in transit
While preparing a bank reconciliation, which of the following items would be added to the bank statement balance?
Deposits in transit
What is the maturity date of the note?
February 1, 2013
Which of the following .. would be added to the company's cash balance on a bank reconciliation?
Interest earned on the bank account
According to the ... Act of 2003. Who is primarily responsible for establishing and maintaining a system of individual control over the company's financial repeating?
Management of the company
A check returned by a bank because the customer's cash account balance could NOT cover the check is called a:
NSF check
Which of the following is an example of a debit memo?
Notice of a bank service charge
Which of the following is an example of a credit memo?
Notice of interest earned on a checking account
Which of the following procedures is NOT part of the preparation of a bank reconciliation for a checking account?
Reversing all the transactions recorded on the company's records that do not yet appear on the bank statement
An incentive used by a company to induce the customer to keep damaged goods is called a:
Sales allowance
An incentive used by a company to encourage prompt payment is called a
Sales discount
