Question
1. When journalizing for the estimated sales returns, there would be a debit to: A) Sales Refunds Payable. B) Cost of Goods Sold. C) Sales
1. When journalizing for the estimated sales returns, there would be a debit to:
A) Sales Refunds Payable.
B) Cost of Goods Sold.
C) Sales Returns and Allowances.
D) Accounts Receivable.
2. When journalizing for an actual sales return, there would be a debit to:
A) Sales Refunds Payable.
B) Cost of Goods Sold.
C) Sales Returns and Allowances.
D) Accounts Receivable.
3. What amount does a company expect to collect from Accounts Receivable?
A) gross amount of Accounts Receivable
B) net realizable value of Accounts Receivable
C) gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts
D) B and C
4. The income statement approach to estimating uncollectible accounts is called the ________ method. The balance sheet approach to estimating uncollectible accounts is called the ________ method.
A) direct write-off; allowance
B) allowance; direct write-off
C) percent-of-sales; aging-of-receivables
D) aging-of-receivables; percent-of-sales
Emma Jones Company has the following information available:
Account | 12/31/2019 | 12/31/2018 |
Accounts Payable | $76,500 | $80,000 |
Accounts Receivable, net | 42,300 | 49,000 |
Cash and Cash Equivalents | 43,700 | 70,000 |
Inventories | 100,000 | 99,000 |
Long-Term Investments | 20,000 | 100,000 |
Short-Term Investments | 27,000 | 44,000 |
Income Taxes Payable | 2,000 | 5,000 |
Long-Term Notes Payable | 20,000 | 30,000 |
Did the quick ratio improve from 2018 to 2019?
A) No.
B) Yes.
C) It stayed the same.
D) There is not enough information.
Rockford Moving Company has calculated the following ratios:
Ratio | 12/31/2019 | 12/31/2018 |
Current Ratio | 1.25 | 2.00 |
Quick Ratio | 1.10 | 1.50 |
Collection Period | 30 days | 60 days |
Did the company's liquidity improve in 2019?
A) No.
B) Yes.
C) There is conflicting information. One ratio improved and two ratios did not improve.
D) There is not enough information to assess.
33) Days' sales in receivables is also called:
A) days' sales outstanding
B) collection period
C) accounts receivable turnover
D) A and B
34) Accounts receivable turnover equals:
A) days' sales in receivables.
B) average collection period.
C) average net accounts receivable.
D) net credit sales divided by average net accounts receivable.
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