Financial Ch4/5 multiple choice

A company had the following sales transactions. 1. Total debit card sales = $200,000 2. Total credit card sales = $400,000 3. Total cash sales = $800,000 4. Total check sales = $100,000 There is a charge of 2% on all credit card transactions. Calculate total CASH recorded for these sales.

$1,492,000

The following information is about the cash balances for Mooner Sooner Inc., at the end of 20XC: Bank balance: $8,000 Checks outstanding: $5,800 Note collected by the bank: $1,500 Service fee: $20 Deposits outstanding: $4,000 NSF check (bad check) returned for $300 What is the correct cash balance for Mooner Sooner Inc.?

$6,200

On February 1, 20XB, Middelton Corp. issues cash and accepts a $1,000 note receivable that offers 12% interest and is due in six months. How much interest revenue will Middleton Corp report during 20XB?

$60

FM provided services to a customer on account for $1,000. FM invoiced the customer and offered credit terms of 2/10, n30. The customer paid FM within 9 days of the invoice date. Identify the true statements (circle all that apply)

-Accounts receivable is credited for $1,000 when the customer pays -The customer paid $980 in cash -Sales discounts are debited $20

Which of the following account(s) is NOT a contra revenue, circle all that apply:

-Sales -Trade discount -Allowance for uncollectible -A/r

On August 1, 20XB, Middelton Corp. issues cash and accepts a $1,000 note receivable that offers 12% interest and is due in six months. How much interest revenue will Middleton Corp report during 20XB and 20XC?

20XB 20XC $50 $10

On January 15, 20XB, the accounts receivable balance was $8,500 and the balance in the allowance for uncollectible accounts was $1,300. On January 15, 20XB, a $800 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

7,200

After preparing a bank reconciliation, the collection of a note by the bank on a company's behalf would be recorded with:

A credit to notes receivable

Which employees are responsible for a company's effective internal controls?

All employees

On January 31, 20XB, Low Company wrote off an uncollectible account of $2,000. The allowance method is used. The write-off would cause bad debt expense to:

Be unChanged

Prior to the write off of a $30 customer account, Kraft Company had the following account balances: Accounts receivable $9,800 Allowance for doubtful accounts 500 The net realizable value of the receivables before and after the write-off was:

Before After 9,300 9,300

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $100 for merchandise provided, McGregor would:

Debit service fee expense $3.00

When using the allowance method for bad debts, bad debt expense should be recorded

as an adjusting entry at the end of the accounting period.

Which of the following would not be recorded as a cash sale?

customer who wants to buy on account

When using the allowance method for accounting for bad debts, accounts receivable is reported on the balance sheet at the expected net realizable value. When a particular receivable from a customer ultimately is determined to be uncollectible and is written off, the recording of this event will:

have no effect on the net realizable value of the accounts receivable.