Question
Inventory records for a company revealed the following: DateTransactionNumber of UnitsUnit Cost Apr. 1Beginning inventory500$2.40 Apr. 20Purchase400$2.50 The company sold 700 units of inventory during
Inventory records for a company revealed the following:
DateTransactionNumber of UnitsUnit Cost
Apr. 1Beginning inventory500$2.40
Apr. 20Purchase400$2.50
The company sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:
a. | $1,690 | |
b. | $1,720. | |
c. | $1,700. | |
d. | $1,730. | |
e. | $1,710. |
If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is reasonably possible, a contingent liability should be
a. | Disclosed, but not reported as a liability. | |
b. | Reported as a liability, but not disclosed. | |
c. | Disclosed and reported as a liability. | |
d. | Neither disclosed nor reported as a liability. |
On December 31, 2018, a company had balances in Accounts Receivable of $53,600 (debit) and in Allowance for Uncollectible Accounts of $1,325 (credit). During 2019, the company wrote off $1,465 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,280 at December 31, 2019. Bad debt expense for 2019 would be:
a. | $1,140. | |
b. | $1,420. | |
c. | $1,280. | |
d. | $1,365. | |
e. | $1,465. |
On August 10th, a company billed a customer for services that were provided on August 5th. Which of the following should be recorded on August 10th?
a. | Debit Cash; Credit Service Revenue | |
b. | Debit Cash; Credit Accounts Receivable | |
c. | Debit Cash; Credit Deferred Revenue | |
d. | Debit Service Revenue; Credit Cash | |
e. | Debit Accounts Receivable; Credit Service Revenue |
An example of an adjusting entry would include:
a. | Interest earned on loaned amounts. | |
b. | Closing expenses to retained earnings | |
c. | Paying cash to setlle prior open payables. | |
d. | Purchase of office supplies on account (and remain unused). | |
e. | Paying cash for utilities in the current period.. |
if you could please post your work/reasoning, that'd be great!! thank you!
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