1. A television manufacturer offers a warranty on its sales of new televisions. During December, new television sales totaled TL205,000. Past experience shows that warranty expense averages about 4% of the annual sales. What adjusting journal entry should be recorded on December 31 relating to the warranty?

a. Debit Warranty Expense for TL8.200; Credit Estimated Warranty Liability for TL8.200

b. Debit Estimated Warranty Liability for TL8.200; Credit Warranty Expense for TL8.200

c. Debit Warranty Expense for TL8.200; Credit Television Parts Inventory for TL8.200

d. No entry needed on December 31.

2. On April 25, 2014 Happy Company filed the VAT return to the Tax Office. The balance of VAT Deductible is TL 3.000, and the balance of VAT Payable is TL 5.000. Determine the amount of VAT to be paid or carried forward to the next period

; a. TL 2.000 payment to Tax Office

b. TL 3.000 payment to Tax Office

c. TL 3.000 VAT carried forward

d. TL 2.000 VAT carried forward

The maturity value of a note is equal to the: a. principal minus total interest due

b. principal times the interest rate

c. principal plus total interest due

d. face value of the note

. Calculate the maturity value for the note as of TL120.000, 5% interest rate, 3 months.

a. TL 1.500 b. TL 15.000 c. TL 121.500 d. TL 12.500

5. Gross profit is the difference between:

a. Net sales and the cost of goods sold

b. The cost of goods available for sale and the cost of goods sold

c. Gross sales and net sales.

d. Net sales and all operating expenses

6. The balance of Allowance for Uncollectible Accounts, before adjusting entry, is TL 5.000. The estimated (target) balance of the allowance account at the end of 31 December 2016 is TL 8.500. Accordingly, the adjusting entry needed to bring the balance to desired level is;

a. Allowance for uncollectible accounts 3.500 Impairment Loss 3.500

b. Impairment Loss 3.500 Allowance for uncollectible accounts 3.500

c. Allowance for uncollectible accounts 3.500 Recovery of Impairment Loss 3.500

d. Recovery of Impairment Loss 3.500 Allowance for uncollectible accounts 3.500

Accounts receivables of York Company shows a debit balance of TL 208.000 on December 31, 2016. The impairment analysis for receivables shows that the net recoverable amount is TL 194.600. Also Allowance for Uncollectible Accounts has a credit balance of TL 1.600 before the adjustment.

7. What is the impairment loss or recovery for the period? a. TL 11.800 impairment loss

b. TL 11.800 recovery of impairment loss

c. TL 13.400 impairment loss

d. TL 13.400 recovery of impairment loss

8. What is the ending balance of Allowance for Uncollectible Accounts? ___________________ a. TL 11.800 b. TL 13.400 c. TL 10.200 d. TL 206.400