ACCOUNTING ONE FINAL EXAM
Briggs Company purchased $15,000 of inventory on credit with credit terms of 2/10, n/30. Briggs paid for the purchase within the discount period. How much did Briggs pay for the inventory?
A. $14,700 B. $15,000 C. $14,800 D. $15,300
On April 20, McLean company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10,n/30. On April, 28, Tazwell pays for half of the services provided, and on May 19, it pays for the other half. What is the total amount of cash McLean received?
A. $3,000 B. $2,700 C. $2,985 D. $2,970
The company received a promissory note from a customer on March 1 of the current year. The principal amount of the note is $20,000, the terms are 3 months and 9% annual interest. What is the total amount of interest the company will receive when the note is collected?
A. $300.00 B. $150.00 C. $450.00 D. $1,800.00
The following data are from the company's records for the year ended December 31: Accounts receivable - January 1 $350,000 Credit sales during the year $1,200,000 Collections from credit customers during the year $850,000 Customers accounts written off as uncollected during the year $10,000 Allowance for doubtful accounts-January 1. $35,000 Estimated uncollected accounts based on an aging analysis $50,000 What is the balance of Accounts Receivable at December 31?
A. $700,000 B. $340,000 C. $690,000 D. $710,000
Which inventory costing method results in the highest inventory balance during a period of rising purchases prices?
A. FIFO B.WEIGHED AVERAGE COST C.LIFO D.BOTH FIFO AND LIFO RESULT IN THE SAME INVENTORY BALANCE
Which of the following transactions would not result in an entry to the inventory account in the buyers accounting records under a perpetual inventory system?
A. Purchases of merchandise of credit B.
The following journal entry was included in the accounting records of Jentzen Corp: Oct 15. Accounts Payable 4,000 Merchandise inventory. 40 Cash. 3,960 Based o this information, it is likely that the company:
A. Purchases of merchanise on cash B. Paid for inventory purchased on credit with a 1% discount. C. Sold inventory for cash D. Collected cash for inventory sold on credit and recognized a 1% sales discount.
Which inventory cost flow method assigns the same cost to all units whether sold or left in the ending method?
A. SPECIFIC IDENTIFICATION B.WEIGHTED AVERAGE COST C. LIFO D. FIFO
Satoor, inc., which uses a periodic inventory system, purchased merchandise from Taye company on July 7 for $15000. The credit terms were 1/10, n/30. The goods were shipped F.O.B. Shipping point on July 7, Satoor, inc,. Received the merchandise on July 10 and paid the amount due on July 15. Who is responsible for the payment of the transportation costs on the merchandise sold?
A. The seller B. The buyer C. Split equally between the two companies D. Cannot be determined from the information provided.
