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The journal entry to write off an uncollectible account does not change the net realizable value (book value)of accounts receivable.

A) True
B) False

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A recent annual report for Kirova Company contained the following data: (in millions) A recent annual report for Kirova Company contained the following data: (in millions) A.Calculate the accounts receivable turnover ratio. B.Calculate the average days sales in receivables for 2019 (rounded to the nearest day). C.Explain the meaning of each number. A.Calculate the accounts receivable turnover ratio. B.Calculate the average days sales in receivables for 2019 (rounded to the nearest day). C.Explain the meaning of each number.

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A.Accounts receivable turnover ratio = 9...

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Newark Company has provided the following information: • Cash sales,$450,000 • Credit sales,$1,350,000 • Selling and administrative expenses,$330,000 • Sales returns and allowances,$90,000 • Gross profit,$1,360,000 • Increase in accounts receivable,$55,000 • Bad debt expense,$33,000 • Sales discounts,$43,000 • Net income,$1,030,000 - How much cash was collected from customers?


A) Cash flow increased $1,295,000.
B) Cash flow increased $1,745,000.
C) Cash flow decreased $1,855,000.
D) Cash flow increased $1,405,000.

E) C) and D)
F) B) and D)

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Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount?


A) Net sales decrease and net income decreases.
B) Net sales decrease,operating expenses increase,and net income remains the same.
C) Operating expenses remain the same and net income decreases.
D) Net sales decrease and gross profit decreases.

E) A) and D)
F) B) and C)

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A portion of the income statement for Oscar Company is shown below.Provide the missing account titles and amounts. A portion of the income statement for Oscar Company is shown below.Provide the missing account titles and amounts.

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A.Sales revenue
B.$350,000 - $...

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One of Trent Company's customers returned products that had been sold on account for $800.Which of the following correctly describes the effect on the financial statements of the return?


A) A contra-revenue account decreases $800.
B) Accounts receivable decrease $800.
C) Sales returns and allowances decrease $800.
D) Net sales increase $800.

E) None of the above
F) B) and C)

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Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable.The net realizable value of Oakwood's accounts receivable as shown by the accounting records before and after the write off was as follows:


A) Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable.The net realizable value of Oakwood's accounts receivable as shown by the accounting records before and after the write off was as follows: A) B) C) D)
B) Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable.The net realizable value of Oakwood's accounts receivable as shown by the accounting records before and after the write off was as follows: A) B) C) D)
C) Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable.The net realizable value of Oakwood's accounts receivable as shown by the accounting records before and after the write off was as follows: A) B) C) D)
D) Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of $21,500 just prior to writing off as worthless a customer's $5,000 account receivable.The net realizable value of Oakwood's accounts receivable as shown by the accounting records before and after the write off was as follows: A) B) C) D)

E) A) and B)
F) All of the above

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Which of the following statements is correct?


A) A decrease in the accounts receivable balance means that credit sales exceeded cash collections from customers.
B) The accounts receivable balance increases when cash collected from customers exceeds credit sales.
C) A decrease in accounts receivable is deducted from net income when determining cash flow from operating activities.
D) An increase in accounts receivable is deducted from net income when determining cash flow from operating activities.

E) A) and B)
F) C) and D)

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Which of the following transactions does not affect gross profit?


A) A customer returning merchandise that was sold for a profit.
B) The collection of cash on an account receivable,which was paid for by the customer within the discount period.
C) The journal entry to record bad debt expense.
D) Accepting a credit card for a sale and paying a service fee to the credit card company.

E) All of the above
F) B) and C)

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Hickory Corporation recorded sales revenue during the year of $350,000 of which $100,000 was on credit.The company has experienced an average bad debt loss rate of 2% of credit sales. Prepare the adjusting journal entry at the end of the year to record bad debt expense.

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A deposit in transit in a bank reconciliation should be:


A) Added to the depositor's book cash balance.
B) Subtracted to the depositor's book cash balance.
C) Added to the bank statement balance.
D) Subtracted from the bank statement balance.

E) A) and B)
F) A) and C)

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The cash account and the December bank statement of Gomez Company showed the following: deposits made by Gomez Company during December,$90,000;deposits reflected on the December bank statement,$88,000;and deposits in transit on November 30,$5,000.What was the amount of deposits in transit at the end of December?


A) $10,000.
B) $7,000.
C) $5,000.
D) $2,000.

E) A) and B)
F) A) and C)

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The cash records and the bank statement of Frankel Company showed the following at the end of February: Outstanding checks as of the beginning of February,$8,000;checks written by Frankel Company according to its books during February,$50,000;and checks cleared by the bank during February,$54,000.What was the amount of the outstanding checks at the end of February?


A) $2,000.
B) $4,000.
C) $6,000.
D) $8,000.

E) A) and B)
F) B) and C)

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Showing 121 - 133 of 133

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