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The data presented below is for Mellon Corporation for the year ended December 31, 2016: Benton Corporation Mellon Corporation Lynx Corp. Hide or show questionsProgress:10/64 items A company reported the following information for its most recent year of operation: purchases, $100,000; beginning inventory, $20,000; and cost of goods sold, $110,000. How much was the company's ending inventory? B. $20,000. C. $15,000. D. $30,000 At the end of 2015, Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (debit) before any adjustment. The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method. Murray State's adjustment on December 31, 2015, to record its estimated uncollectible accounts included a: A. Credit to Allowance for Uncollectible Accounts of $12,000. B. Debit to Bad Debt Expense of $16,500. C. Credit to Allowance for Uncollectible Accounts of $16,500. D. Debit to Bad Debt Expense of $16,500; credit to Allowance for Uncollectible Accounts of $16,500. On July 22, a company that uses the perpetual inventory system purchased merchandise inventory at a cost of $5,250 with credit terms 2/10, net 30. If the company pays for the purchase on August 1, what would be the appropriate journal entry? A. Merchandise Inventory $5,250 B. Accounts Payable $5,250 C. Purchase Discount $5,145 D. Accounts Payable $5,145 E. Accounts Payable $5,250 On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the perpetual inventory system. The journal entry or entries that Robertson will make on October 1 is: A. Sales $5,800 B. Sales $5,800 C. Accounts Receivable $5,800 D. Accounts Receivable $5,800 E. Accounts Receivable $4000 Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on June 10, assuming the customer made the correct payment on that date? a. Cash 46,000 b. Cash 46,000 c. Cash 46,000 d. Cash 46,460 A. Option a. B. Option b. C. Option c. D. Option d. RJ Corporation has provided the following information about one of its inventory items: RJ Corporation has provided the following information about one of its inventory items: During the year, RJ sold 3,000 units. A. $11,680,000. B. $11,590,000. C. $11,480,000. D. $11,550,000. RJ Corporation has provided the following information about one of its inventory items: During the
year, RJ sold 3,000 units. A. $11,680,000. B. $11,590,000. C. $11,480,000. D. $11,550,000 On June 1 a company purchased a one-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800. B. Debit Prepaid Insurance, $900; credit Insurance Expense, $900. C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360. D. Debit Insurance Expense, $1,050; credit Prepaid Insurance, $1,050. E. Debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800. Which of the following is true for a company who uses the allowance method of accounting?Answer and Explanation: If a company uses the allowance method of accounting for bad debts, it is true that d) it will report accounts receivable in the balance sheet at... See full answer below.
Which of the following is true for a company who uses the allowance method of accounting for uncollectible accounts?A company that uses the allowance method estimates uncollectible accounts expense before they actually become uncollectible, using a contra asset account known as allowance for doubtful accounts, and reports the net realizable value of accounts receivable on the balance sheet.
What is correct about the allowance method?The allowance method involves setting aside a reserve for bad debts that are expected in the future. The reserve is based on a percentage of the sales generated in a reporting period, possibly adjusted for the risk associated with certain customers.
When a company uses the allowance method of accounting?Businesses typically use one of two methods to account for unrecoverable debt: the allowance method and the direct write-off method . The allowance method anticipates and prepares for a certain amount of unpaid debt while the direct write-off method deals with the debt only after it hasn't been paid.
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Which of the following is a true statement about a company that uses the allowance method quizlet?
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