Blue Spruce Corp. sells its goods on terms of 2/10, n/30. It has an accounts receivable turnover of 7. What is its average collection period (days)?

39

31

81

52

Cheyenne Corp. unadjusted trial balance includes the following balances (assume normal balances):

	Accounts Receivable	$1200000
	Allowances for Doubtful Accounts	$20300

Bad debts are estimated to be 5% of outstanding receivables. What amount of bad debt expense will the company record?

$62278

$38422

$60000

$39700

The financial statements of the Skysong, Inc. reports net sales of $372000 and accounts receivable of $60000 and $31200 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days?

85.2

34.5

54.8

44.7

Pina Colada Corp. receives a $10800, 3-month, 10% promissory note from Whispering Winds Corp. in settlement of an open accounts receivable. What entry will Pina Colada Corp. make upon receiving the note?

Notes Receivable		11070
	Accounts Receivable-Whispering Winds Corp.		10800
	Interest Revenue		270

Notes Receivable		10800
	Accounts Receivable-Whispering Winds Corp.		10800

Notes Receivable		10800
Interest Receivable		270
	Accounts Receivable-Whispering Winds Corp.		10800
	Interest Revenue		270

Notes Receivable		11070
	Accounts Receivable-Whispering Winds Corp.		11070

On October 1, 2017, Oriole Company places a new asset into service. The cost of the asset is $220000 with an estimated 8-year life and $30000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2017, balance sheet assuming that Oriole Company uses the double-declining-balance method of depreciation?

$206250.

$190000.

$176250.

$213125.

A plant asset cost $160000 and is estimated to have a $22000 salvage value at the end of its 4-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be

$16625.

$11375.

$18080.

$20000.

Wildhorse Co. bought a machine on January 1, 2017. The machine cost $144000 and had an expected salvage value of $29000. The life of the machine was estimated to be 5 years. The company uses the straight-line method of depreciation. The depreciable cost of the machine is

$144000.

$115000.

$38333.

$23000.

Sheridan Company incurred $820000 of research and development costs in its laboratory to develop a new product. It spent $132000 in legal fees for a patent granted on January 2, 2017. On July 31, 2017, Sheridan paid $68000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2017?

$820000.

Some other amount.

$200000.

$1020000.

A company purchased office equipment for $51000 and estimated a salvage value of $9000 at the end of its 20-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is

1.0%.

10.0%.

5.0%.

20.0%.

On July 1, 2017, Cullumber Company purchased the copyright to Bramble Corp. for $310000. It is estimated that the copyright will have a useful life of 5years. The amount of amortization expense recognized for the year 2017 would be

$62000.

$57350.

$29687.

$31000.