ACCT TEST 2 (actual test) – Flashcards
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sales for week are 3569, of which 2900 was on credit and 659 in cash sales, cost of merch sold was 1888. journal entry?
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debit COGS 1888 credit inventory 1888
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what type of account is allowance for doubtful accounts?
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contra asset
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no journal entries are required for reconciling items on bank side because
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already been recorded on company ledger
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method of valuing inventory based on assumption that newest goods will be sold first
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LIFO
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retailer sells merch on account, general entry for sale's price would be
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debit A/R credit sales
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in a multi step income statement what is excluded from calculation of operating income?
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interest expense
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allowance for bad debt has credit balance 9000, company estimates uncollectible accounts will be 15000. what will be bad debt amount on income statement?
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6000
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A/D 23,000; A/P 8500; A/R 12000; cash 3500; equipment 44000; land 21000; M/P 45000, prepaid insurance 75000; supplies 2000; unearned revenue 6000, wages payable 4500. what is long term assets?
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42000
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A/R 30000 and allowance for bad debt has credit balance of 3000. what is net realizable value before/after a 2000 A/R is written off?
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27000, 27000
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sales revenue 230,000; CoGS 150,000, interest revenue 10,000; operating expenses 42,500; sales discounts 20,000; sales returns and allowances 5000...what is net income?
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22500
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allowance for bed debt has credit balance of 9000. company's management estimates uncollectible accounts will be 15000. what is bal of allowance for bad debt reported on balance sheet?
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15000
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current...$24,400...2% uncollectible 31-60 days...7350...8% uncollectible 61-90 days...3380...15% uncollectible 91 and up...1220...30% uncollectible........current balance in allow for doubt accounts is a 958 credit
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991
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bank statement balance 6350...reconciling items included bookkeeper error 300, a 300 check recorded as 600, two outstanding checks totaling 820, service charge of 25, deposit in transit of 280, interest revenue 21. what is adjusted bank balance?
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5810
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inventory account appears on
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balance sheet
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A/D 23000; A/P 8500; A/R 12000; cash 3500; equipment 44000; land 21000; M/P 45000; prepaid insurance 7500; supplies 2000; unearned revenue 6000, wages payable 4500...what is current liabilities?
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19000
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customer returns $45 goods that were purchased on account, under perpetual inventory, company will record a
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debit returns and allowance credit accounts receivable-customer
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GAAP requires companies with significant A/R to use the
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allowance method to evaluate bad debts
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customers check for 1280 returned for insufficient funds, what journal entry adjusts the NSF check?
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debit accounts receivable 1280 debit cash 1280
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expenses that fall outside of regular operations of business are
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included under other revenues and expenses section of income statement
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journal entry to write off customers account under allowance method
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debit allowance for uncollectible accounts credit A/R customer's name
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reconciling bank statement, bank balance is 1500 and checkbook balance is 2105. what is most probable reason for checkbook balance being larger?
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deposit in transit was made at end of month
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number 22
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...
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inventory account shows 50000 balance, but physical count shows 48000. what entry records shrinkage?
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debit COGS 2000 credit merchandise inventory 2000
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314000 credit sales uses allowance method. allowances for doubtful accounts now has 1890 debit balance. if company estimates 8160 of accounts will be uncollictibel based on aging, what will be journal entry to record estimated bad debt expense?
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10050
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entry to record company's cost of selling merch under perpetual inventory system
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debit COGS credit inventory
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A/D 23000; AP 8500; AR 12000, cash 3500; equip 44000; land 21000, MP 45000; prepaid insurance 7500; supplies 2000; unearned rev 6000; wages payable 4500....what is current assets?
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25000
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LIFO AND FIFO QUESITONS
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