FINANCIAL ACCOUNTING ( 5 multiple choice questions)

Chapter Revenue and Accounts Receivable :

1)On December 31, 20x5, you enter into a three year contract to build an office building for $19697757. At the end of 20x6, you incurred $6834251 of costs and expect to incur an additional $7626879 to complete the contract. How much revenue will you realize on this contract in 20x6? Select one: a. $2474801 b. $5236627 c. $17650656 d. $9309052

2)On December 31, 20x5, you enter into a three year contract to build an office building for $22055068. At the end of 20x6, you incurred $4231476 of costs and expect to incur an additional $8772453 to complete the contract. How much profit will you realize on this contract in 20x6? Select one: a. $2945239 b. $9051139 c. $6105900 d. $3017046

3)On January 1, 20x8, Myer Companys allowance for doubtful accounts had a credit balance of $4319. Sales revenue for 20x8 was $985182 of which 80% was on credit. Historical data indicates that 3 percent of credit sales prove uncollectible. The company wrote off $7071 of accounts receivable during the year. What should the balance in the allowance account be after the adjusting entry for doubtful accounts is made? Select one: a. $16573 cr. b. $12254 cr. c. $20892 cr. d. $12254 dr.

4) The following accounts were taken from Lane Co.s unadjusted trial balance at December 31, 20x6:

Debit Credit Accounts Receivable $339154 Allowance for doubtful accounts 2588 Net credit sales $183769

Jessica estimates that 4.5% of the credit sales will become uncollectible. After adjustment at December 31, 20x6, what is the balance in the allowance for doubtful accounts? Select one: a. $10858 b. $5682 c. $15262 d. $8270

5)The following list of partial account balances is provided: Sales returns and allowances $461 Sales discounts 992 Sales revenue 61621

Allowance for doubtful accounts 934 What will be the net sales shown on the income statement? Select one: a. $59234 b. $60168 c. $61160 d. $60629