1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $14,371. The retailer receives a 25% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account? Round your answer to the nearest whole dollar.

$10,778

$10,563

$14,371

$17,748

2. A sales invoice included the following information: merchandise price, $2,900; terms 1/10, n/eom; FOB shipping point with prepaid freight of $387 added to the invoice. Assuming that a credit for merchandise returned of $600 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

$2,900

$3,254

$600

$2,664

3. Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 1/10, net 30, for $400. Pierce prepaid the $55 shipping charge. Which of the following entries does Pierce make to record this sale?

Accounts Receivable-Stanton, debit $55; Sales, credit $55

Accounts Receivable-Stanton, debit $396; Sales, credit $396, and Accounts Receivable-Stanton, debit $55; Cash, credit $55

Accounts Receivable-Stanton, debit $455; Sales, credit $455

Accounts Receivable-Stanton, debit $55; Sales, credit $55, and Transportation Out, debit $400; Cash, credit $400

4. Abbey Co. sold merchandise to Gomez Co. on account, $28,200, terms 2/15, net 45. The cost of the goods sold was $15,945. Abbey Co. issued a credit memo for $3,400 for merchandise returned that originally cost $1,225. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?

$12,916

$3,400

$9,584

$14,720

10. Harris Company had checks outstanding totaling $4,157 on its May bank reconciliation. In June, Harris Company issued checks totaling $39,242. The June bank statement shows that $26,378 in checks cleared the bank in June. A check from one of Harris Company's customers of $312 was also returned marked "NSF." Determine the amount of outstanding checks on Harris Company's June bank reconciliation.

Select the correct answer.

$16,709

$65,620

$22,221

$17,021

13. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $682,021 and Allowance for Doubtful Accounts has a balance of $24,991. What is the net realizable value of the accounts receivable?

Select the correct answer.

$24,991

$657,030

$707,012

$682,021

15. An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,025. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record the bad debt expense for the period will require a

Select the correct answer.

debit to Allowance for Doubtful Accounts for $4,025

credit to Allowance for Doubtful for $4,025.

debit to Allowance for Doubtful Accounts for $3,125.

debit to Bad Debt Expense for $3,125.

16. Allowance for Doubtful Accounts has a credit balance of $956 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $11,025. Which of the following entries records the proper adjustment for Bad Debt Expense?

Select the correct answer.

debit Allowance for Doubtful Accounts, $10,069; credit Bad Debt Expense, $10,069

debit Allowance for Doubtful Accounts, $11,981; credit Bad Debt Expense, $11,981

debit Bad Debt Expense, $11,981; credit Allowance for Doubtful Accounts, $11,981

debit Bad Debt Expense, $10,069; credit Allowance for Doubtful Accounts, $10,069

17. Allowance for Doubtful Accounts has a debit balance of $741 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $16,797. Which of the following entries records the proper adjusting entry for bad debt expense?

Select the correct answer.

debit Bad Debt Expense, $16,056 credit Allowance for Doubtful Accounts, $16,056

debit Bad Debt Expense, $17,538 credit Allowance for Doubtful Accounts, $17,538

debit Bad Debt Expense, $741 credit Allowance for Doubtful Accounts, $741

debit Allowance for Doubtful Accounts, $16,797 credit Bad Debt Expense, $16,797

18.

At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $647. During the year, $412 of previously written off accounts were reinstated and accounts totaling $754 are written off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be the one listed below.

Select the correct answer.

$647

$412

$754

$305

19. Allowance for Doubtful Accounts has a debit balance of $251 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 2% of sales. If net sales are $934,500, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

$18,439

$18,690

$18,941

$251