Terms in this set (64)
The data presented below is for Mellon Corporation for the year ended December 31, 2016:
Sales (100% on credit)$1,500,000Sales returns60,000Accounts Receivable (December 31, 2016)250,000Allowance for Doubtful Accounts [Credit Balance] (Before adjustment at
December 31, 20163,000Estimated amount of uncollectible accounts based on an aging analysis31,000
If Mellon uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2016?
Benton Corporation
The data below is for Benton Corporation for 2016.
Accounts Receivable—January 1, 2016$334,000Credit sales during 2016850,000Collections from credit customers during
2016725,000Customer accounts written off as uncollectible during 201612,000Allowance for Doubtful Accounts [Credit Balance] (After write-off of uncollectible accounts)1,700Estimated uncollectible accounts based on an aging analysis13,200
If the aging approach is used to estimate bad debts, what should the balance in the Allowance for Doubtful Accounts be after the bad debts adjustment?
Mellon Corporation
The data presented below
is for Mellon Corporation for the year ended December 31, 2016:
Sales (100% on credit)$1,500,000Sales returns60,000Accounts Receivable (December 31, 2016)250,000Allowance for Doubtful Accounts [Credit Balance] (Before adjustment at December 31, 20163,000Estimated amount of uncollectible accounts based on an aging analysis31,000
If Mellon estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2016?
Lynx Corp.
The data presented below for Lynx Corp. is for the year ended December 31, 2016:
Sales (100% on credit)$1,000,000Sales returns30,000Accounts Receivable (December 31, 2016)170,000Allowance for Doubtful Accounts [Cr. Balance] (Before adjustment at December 31, 2016)1,300Estimated amount of uncollectible accounts based on aging analysis14,000
If Lynx Corp. uses the aging of accounts receivable approach to estimate its bad debts, what amount will
be reported as bad debt expense for 2016?
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Benton Corporation
The data below is for Benton Corporation for 2016.
Accounts Receivable—January 1, 2016$334,000Credit sales during 2016850,000Collections from credit customers during 2016725,000Customer accounts written off as uncollectible during 201612,000Allowance for Doubtful Accounts [Credit Balance] (After write-off of uncollectible
accounts)1,700Estimated uncollectible accounts based on an aging analysis13,200
What is the balance of Accounts Receivable at December 31, 2016?
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?
A. $10,000.
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
Accounts Payable $5,250
B. Accounts Payable $5,250
Merchandise Inventory $5,250
C. Purchase Discount $5,145
Accounts Payable
$5,145
D. Accounts Payable $5,145
Cash $5,145
E. Accounts Payable $5,250
Merchandise Inventory $105
Cash $5,145
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
Accounts Receivable $5,800
B. Sales $5,800
Accounts Receivable $5,800
Cost of Goods Sold $4,000
Merchandise Inventory$4,000
C. Accounts Receivable $5,800
Sales $5,800
D. Accounts Receivable $5,800
Sales $5,800
Cost of Goods Sold $4000
Merchandise Inventory $4000
E. Accounts Receivable $4000
Sales $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
Accounts Receivable 45,540
Discounts Receivable 460
b. Cash 46,000
Accounts Receivable 45,540
Interest Revenue 460
c. Cash 46,000
Accounts Receivable 46,000
d. Cash 46,460
Accounts Receivable 46,000
Interest Revenue 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.
Cost of goods sold using FIFO would be:
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.
Cost of goods sold using the weighted average method would be?
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.