Question
1/ On November 10 of the current year, Flores Mills sold carpet to a customer for $7,600 with credit terms 1/10, n/30. Flores uses the
1/ On November 10 of the current year, Flores Mills sold carpet to a customer for $7,600 with credit terms 1/10, n/30. Flores uses the gross method of accounting for cash discounts.
What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?
Multiple Choice
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Cash 7,524 Sales discounts 76 Accounts receivable 7,600 -
Cash 7,524 Sales 76 Accounts receivable 7,600 -
Cash 7,600 Sales discounts 76 Accounts receivable 7,600 Sales 76 -
Cash 7,524 Accounts receivable 7,524
2/ Oswego Clay Pipe Company sold $46,700 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego uses the gross method of accounting for cash discounts.
What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?
Multiple Choice
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Cash 46,700 Sales discounts 1,868 Accounts receivable 46,700 Sales discounts forfeited 1,868 -
Cash 46,700 Accounts receivable 44,832 Sales 1,868 -
Cash 44,832 Sales 1,868 Accounts receivable 46,700 -
Cash 44,832 Sales discounts 1,868 Accounts receivable 46,700
3/ Ireland Corporation obtained a $48,000 note receivable from a customer on June 30, 2018. The note, along with interest at 5%, is due on June 30, 2019. On September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 9%. What amount of cash did Ireland receive from Cloverdale Bank?
Multiple Choice
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$43,680.
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$48,600.
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$46,998.
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$44,598.
4/ Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018:
Currency and coins | $ | 650 | |
Balance in checking account | 2,800 | ||
Customer checks waiting to be deposited | 2,700 | ||
Treasury bills, purchased on 11/1/2018, mature on 4/30/2019 | 2,500 | ||
Marketable equity securities | 9,300 | ||
Commercial paper, purchased on 11/1/2018, mature on 1/30/2019 | 5,300 | ||
What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?
Multiple Choice
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$23,250.
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$11,450.
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$13,950.
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$8,650.
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