accounting question
9. Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible account of its customer, P. Best. On July 10, Newton received a check for the full amount of $3,000 from Best. On July 10, the entry or entries Newton makes to record the recovery of the bad debt is: A. Accounts Receivable-P. Best 3.000 Allowance for Doubtful Accounts 3.000 Cash 3,000 Accounts Receivable P-Best 3.000 B Cash 3,000 Bad Debts Expense 3.000 C. Accounts Receivable - P. Best 3,000 Bad Debts Expense 3,000 Cash 3.000 Accounts Receivable - P. Best 3.000 D. Allowance for Doubtful Accounts 3.000 Accounts Receivable - P. Best 3,000 Accounts Receivable - P. Best 3,000 Cash 3,000 E. Cash 3,000 Accounts Receivable - P. Best 3,000 10. A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is: A. $3,725.00. B. $3,925.00. C. $3,995.00. D. $4,000.50. E. $4,075.00.11. A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000. What is the company's warranty expense for the month of November? A. $26,000 B. $45,000 C. $55,000 D. $60,000 E. $90,000 12. An asset's carrying amount is $18,000 on June 30, Year 6. The asset is being depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 7 for $15,000, the company should record: A. A loss on sale of $1,500. B. A gain on sale of $1,500. C. D. Neither a gain nor a loss is recognized on this type of transaction. A gain on sale of $3,000. E. A loss on sale of $3,000. 13. On March 17, Grady Company agrees to accept a 60-day, 10%, $4,500 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Alert Company on the maturity date? A. Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575. B. Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425. C. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500. D. E. Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500. 14. A company borrowed $50,000 cash from the bank and signed a 6-year note at 7%. The present value of an annuity for 6 years at 7% is 4.7665. The annual annuity payments equal: A. $10,489.88. B. $11,004.88. C. $50,000.00. D. $52,450.00. $238,325.00. 15. Stojko Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was from (used in) operating activities? A. $100,000 B. $(100,000). C. $80,000. D. $(80,000). E. $(10,000)
