A retailer had a beginning merchandise inventory of $30,000, an ending merchandise inventory of $40,000, sales of $450,000, and a cost of goods sold of $300,000. The retailers daily sales in inventory was:

Select one:

a.42.6 days

b.36.5 days

c.31.5 days

d.45.3 days

e.48.7 days

A company reported a gross profit margin of 40% and net sales of $364,500 for the current year. Calculate the cost of goods sold using the gross profit method.

Select one:

a.$218,525

b.$219,190

c.$219,687

d.$218,700

e.$219,015

Source documents such as purchase orders and cancelled cheques are destroyed after a month as there is no space to store them. Which internal control activity has been violated?

Select one:

a.physical and IT controls

b.human resource controls

c.documentation procedures

d.segregation of duties

e.establishment of responsibility

f.independent checks of performance

Which the following would result in a journal entry after preparing the bank reconciliation?

Select one:

a.EFT payment from customer on account.

b.A $250 outstanding cheque was issued by the company but hasnt yet cleared the chequing account.

c.The company deposited $650 at the bank but the deposit wasnt yet recorded in the bank statement.

d.The bank made a mistake. A $650 company deposit was recorded as $560 in the bank statement.

The following asset balances were as follows: Cash, $9,650; Accounts Receivable, $21,600; and Allowance for Doubtful Accounts, $5,540. The next day, you record the collection of a customer account for $2,010 that had been written off six months earlier. Record the balances of each of these accounts after the customer collection.

Select one:

a.Cash, $9,600; Accounts Receivable, $21,600; Allowance for Doubtful Accounts, $7,550

b.Cash, $9,600; Accounts Receivable, $23,610; Allowance for Doubtful Accounts, $5,540

c.Cash, $11,660; Accounts Receivable, $23,610; Allowance for Doubtful Accounts, $5,540

d.Cash, $11,660; Accounts Receivable, $21,600; Allowance for Doubtful Accounts, $7,550

e.Cash, $9,600; Accounts Receivable, $21,600; Allowance for Doubtful Accounts, $5,540

Before year end adjusting entries, Accounts Receivable had a $215,000 balance. The Allowance for Doubtful Accounts had $5,640 credit balance. Based on % of receivables method, $25,600 of year-end receivables are estimated to be uncollectible. After the year end adjusting entry for bad debt expense, what are the balances in the following accounts?

Select one:

a.Bad Debt Expense, $19,960 and Allowance for Doubtful Accounts, $19,960

b.Bad Debt Expense, $25,600 and Allowance for Doubtful Accounts, $25,600

c.Bad Debt Expense, $19,960 and Allowance for Doubtful Accounts, $25,600

d.Bad Debt Expense, $31,240 and Allowance for Doubtful Accounts, $31,240

e.Debt Expense, $25,600 and Allowance for Doubtful Accounts, $31,240