On February 20 of the current year, Strawberry Fields sold produce to a customer for $9,000 with credit terms 2/10,n/30. How would Strawberry Fields record the sale on February 20? 9,000 Accounts Receivable Cash Discounts Sales Revenue 180 8,820 8,820 Accounts Receivable Sales Revenue 3. 8,820 8,820 Accounts Receivable Sales Discount Sales Revenue C. 180 9,000 9,000 Accounts Receivable Sales Revenue 9,000 On May 1 of the current year, Yamam sold produce to a customer for $3,000 with credit terms 2/10,n/40 The customer made the correct payment on May 9th. How would Yam Jam record the collection of cash on May 9th? 2.940 Cash Accounts Receivable 2.940 Cash Accounts Receivable 3,000 3.000 2.940 Cash Sales Discount Sales Revenue 3,000 Cash Sales Discount Accounts Receivable 2.940 60 3,000 Net accounts receivable (Net realizable value) is calculated as Beginning balance of Accounts Receivable less all write offs for the period, Account Receivable less Sales Discounts and sales Allowances Net Revenues minus Sales Discount and sales Allowance Accounts receivable minus Nlowance for Uncollectible Accounts Before any adjustments, Sleet Company had an end of the year accounts receivable balance of $510,000 and the allowance for uncollectible accounts had a $900 credit balance. An analysis of accounts receivable determines that the allowance for uncollectible accounts should be 2% of accounts receivable. The adjusting entry would include a credit to Allowance for Uncollectible Accounts of: $9,300 $10.200 C $11.100 $9.000 Banana Corp uses the direct write-off method. They have an actual bad debt of $100. What Journal entry will they record at the time the bad debt occurs? 5100 Allowance for Uncollectible Accounts Accounts Receivable $100 $100 Bad Debt Expense Accounts Receivable $100 Bad Debt Expense $100 Allowance for Uncollectible Accounts $100 Cannot determine without Allowance for Uncollectible Accounts balance D Spock United has to write off $8,000 in uncollectible accounts receivable. What journal entry will they record using the allowance method? 8,000 Allowance for Uncollectible Accounts A Accounts Receivable 8,000 Allowance for Uncollectible Accounts B. Bad Debt Expense 8,000 8,000 8,000 Bad Debt Expense C Accounts Receivable 8,000 Bad Debt Expense 8,000 D. Allowance for Uncollectible Accounts 8.000 Berry Farms delivers and sells product worth $1,000 to a store on account. What will Berry Farm record? A Debit Accounts Receivable $1,000, credit Sales Revenue $1.000. B. Debit Cash $1,000, credit Sales Revenue $1,000 Debit Sales Revenue $1,000, credit Accounts Receivable $1,000. D. Debit Cash $1,000, credit Deferred Revenue $1,000 The normal balance of the account "Sales Returns" is a _ because A Credit; it is a contra expense account to Bad Debt Expense B Debit; it is an expense in the income statement Debit; it is a contra revenue account to Sales Revenue Credit: it is a contra asset account to Accounts Receivable Sam's Shed had account balances in Accounts Receivable of $200,500 and in Allowance for Uncollectible Accounts of $900 (debit) before any adjustments on December 31 An analysis on December 31 determined that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the end of period adjustment would be A 56,915 B, 57,815 $5,115 0.56.015 Marco Manufacturing lends cash to the CEO on August 1, 2020 and accepts a $5,000 note receivable that offers 6% interest and is due in twelve months. How would Marco Manufacturing record the year-end adjustment to accrue interest on December 31, 2020? 100 Interest Revenue Interest Receivable OA Interest Receivable 200 B. Interest Revenue Interest Receivable 125 C. Interest Revenue Interest Receivable 100 D Interest Revenue Inventory is increased in a journal entry with a . It is an account. Debit: Asset Debit: Expense Credit; Asset D. Credit: Expense Crisp Inc reported the following on Dec 31st What is the company's gross profit? Account Amount Sales Revenue Sales Allowance Cost of Goods Sold $151,000 $5,000 $76,000 Income Tax Expense $11,000 $90,000 Accounts Receivable Interest Receivable $10,000 A $70,000 B. $59,000 C $64.000 D. 575.000 On the balance sheet, inventory is classified as: Long Term Asset OA Current Liability B. Contra Asset D. Current Asset Company LMNOP purchased inventory costing $500. On February 4th Company LMNOP sold it to a customer on account for $750 dollars. How should LMNOP record the sale on February 4th? Inventory 5250 Cost of Goods Sold $250 A Sales Revenue $250 Accounts Receivable $250 Cost of Goods Sold $500 Inventory $500 Accounts Receivable $750 Sales Revenue $750 Accounts Receivable Sales Revenue C. Cost of Goods Sold $750 $250 $500 $750 $750 Cost of Goods Sold Inventory Accounts Receivable Sales Revenue $500 $500 On January 1st Adams Co has inventory of $50,000. They purchase $10,000 on January 4th and $100,000 on January 20th Ending Inventory is $20,000. What was the cost of goods sold in January? A $110.000 B. $90,000 $80.000 5140.000 Aunt Connie Corp had the following Inventory. Aunt Connie Corp makes one sale of 200 units on December 23rd and uses the FIFO method to account for inventory. What is the Cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Cost Total Cost Jan 1 Beg Inventory 100 $45 $4.500 Jan 10 Purchase 150 $40 $6.000 A Cost of Good Sold 58.500: Ending Inventory $2,000 Cost of Good Sold 58.250: Ending Inventory 52250 Cost of Good Sold 54,500: Ending Inventory 56,000 Cost of Good Sold 58.400: Ending Inventory $2,100 Aunt Connie Corp had the following inventory. Aunt Connie Corp makes one sale of 200 units on December 23rd and uses the LIFO method to account for inventory. What is the cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Jan 1 Beg. Inventory 100 $45 $4.500 Jan 10 Purchase 150 $40 $6.000 A Cost of Good Sold 58.500: Ending Inventory 52.000 B. Cost of Good Sold 58.250: Ending Inventory 52,250 Cost of Good Sold 54,500: Ending inventory 56,000 Cost of Good Sold 58,400: Ending Inventory 52.100 Aunt Didi Corp had the following Inventory. Aunt Didi Corp makes one sale of 200 units on December 23rd and uses the Weighted Average method to account for inventory. What is the Cost of Goods sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Beg. Inventory 100 $15 $1500 Jan 10 Purchase 150 $25 $3750 A Cost of Good Sold 54,000: Ending Inventory 51,250 B. Cost of Good Sold 54,500: Ending Inventory 5750 cCost of Good Sold 51.500: Ending inventory 53.750 p Cost of Good Sold 54,200: Ending Inventory $1,050 Yellow Company had the following transactions and uses a perpetual inventory system: March 1st: Bought $4,200 worth of inventory from Brown Corp on account March 5th Successfully returned $400 worth of product to Brown Corp March 25th Paid Brown Company in full What is the journal entry on March 25th that Yellow Corp would record: Account Payable Sales Discount OA Cash $4,200 $400 $3,800 $4,200 Cash B. Accounts Payable $4,200 Inventory Sales Returns Cash $4,200 $400 $3,800 Accounts Payable $3,800 $3,800 D. Cash At the end of the year, a company reports the following inventory amounts ($ per unit): Item # of Units Cost Net Realizable Value 100 $5 $6 200 $8 How much will inventory for each product need to be reduced using the lower of cost and net realizable value method? $7 A Reduce Produce X by $100 Reduce Product Y by $200 - Reduce Produce X by So Reduce Product Y by $100 Reduce Produce X by So Reduce Product Y by $200 Reduce Produce X by $100 Reduce Product Y by $0 The following are the details are from Scooter Company for 2020: Sales revenue $545,000 Interest expense $25,000 Salaries expense $62,000 Rent expense $33,000 Income tax expense $14,000 Cost of goods sold $370,000 Advertising expense $19,000 Accounts Receivable $75,000 What are the total Operating Expenses? A $175,000 B. $114,000 C. $153,000 D. 595,000 The following are the details are from Bike Company for 2020: Sales revenue $445,000 Interest expense $15,000 Salaries expense $50,000 Rent expense $59,000 Income tax expense $42,000 Cost of goods sold $250,000 Advertising expense $15,000 Accounts Receivable $75,000 The Operating Income is A Operating Income is $ 124,000. B. Operating Income is $14,000. c. Operating Income is $71,000. D. Operating Income is $195,000. Which of the following costs would be expensed not capitalized? Repairing a broken toilet in a building B. Adding a break room to an office building c Adding a new balcony to a building D. Replace appliances in a restaurant kitchen Which of the following statements is accurate about gains and losses? A loss has a Debit balance and is shown on the balance sheet. A gain has a Credit balance and is shown on the balance A sheet A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Income B. Statement A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Balance Sheet A loss has a Credit balance and is shown on the Income Statement. A gain has a Debit balance and is shown on the Income Statement The amount the company expects to receive from selling the asset at the end of its service life is A Residual value B. Always zero The estimated current market value at the time of purchase Different depending on the depreciation method used D. Crinkoff purchased a grinding machine for their factory. The following costs were incurred: $69,000 $3,000 $750 $200 $600 Purchase price Sales tax Shipping Shipping insurance between seller and factory Extended warranty for any issues over the first year For what amount should Crinkoff record on the balance sheet for the machine? $72,950 $73,550 $72,750 $77,500 D. A $25,000 piece of equipment with a useful life of 5 years and no residual value is being depreciated using the straight line Imethod. At the end of 3 years the equipment was sold for $8,000. What will the journal entry include? Acredit to loss on sale of $2000 OA A debit to residual value of $8,000 A credit to Equipment of $10,000 A debit to accumulated depreciation of 515,000 Which of the following is not an intangible asset: OA Patent Goodwill C. Trademark D. All above are intangible Home Express bought a delivery truck on January 15t 2020. The following are the details: Truck Cost $65,000 Residual value $5,000 Useful life in years Estimated Useful life in miles 50,000 If Home Express uses the straight-line method of depreciation what is the amount of depreciation expense on December 31, 2020? A $13,000 8.512.000 c514,000 D-10.000 Car Express bought a delivery truck on January 15t 2020. The following are the details: Truck cost: $75,000 Residual Value: $5,000 Useful Life years Estimate Useful Miles: 50,000 If Car Express uses the straight-line method of depreciation what is the Book Value at the end of two years on December 31, 2021? A $47.000 8. 545.000 c. 543.000 $42.000 Lawn Express bought a delivery truck on January 1st 2020. The following are the details: Truck cost: $70,000 Residual Value: $10,000 Useful Life years: Estimate Useful Miles: 50,000 If Lawn Express uses the double-declining balance method of depreciation what is the amount of depreciation expense on December 31, 2020? A $28.000 524.000 C 512.000 D525.000 Car Express bought a delivery truck on January 1st 2020. The following are the details: Truck cost: $75,000 Residual Value $5,000 Useful Life years: Estimate Useful Miles: 50,000 If Car Express uses the activity based method of depreciation and the truck is driven 10,000 miles in 2020 what is the amount of depreciation expense on December 31, 2020? A $14.000 B. 315.000 c 512,000 573.000 On February 20 of the current year, Strawberry Fields sold produce to a customer for $9,000 with credit terms 2/10,n/30. How would Strawberry Fields record the sale on February 20? 9,000 Accounts Receivable Cash Discounts Sales Revenue 180 8,820 8,820 Accounts Receivable Sales Revenue 3. 8,820 8,820 Accounts Receivable Sales Discount Sales Revenue C. 180 9,000 9,000 Accounts Receivable Sales Revenue 9,000 On May 1 of the current year, Yamam sold produce to a customer for $3,000 with credit terms 2/10,n/40 The customer made the correct payment on May 9th. How would Yam Jam record the collection of cash on May 9th? 2.940 Cash Accounts Receivable 2.940 Cash Accounts Receivable 3,000 3.000 2.940 Cash Sales Discount Sales Revenue 3,000 Cash Sales Discount Accounts Receivable 2.940 60 3,000 Net accounts receivable (Net realizable value) is calculated as Beginning balance of Accounts Receivable less all write offs for the period, Account Receivable less Sales Discounts and sales Allowances Net Revenues minus Sales Discount and sales Allowance Accounts receivable minus Nlowance for Uncollectible Accounts Before any adjustments, Sleet Company had an end of the year accounts receivable balance of $510,000 and the allowance for uncollectible accounts had a $900 credit balance. An analysis of accounts receivable determines that the allowance for uncollectible accounts should be 2% of accounts receivable. The adjusting entry would include a credit to Allowance for Uncollectible Accounts of: $9,300 $10.200 C $11.100 $9.000 Banana Corp uses the direct write-off method. They have an actual bad debt of $100. What Journal entry will they record at the time the bad debt occurs? 5100 Allowance for Uncollectible Accounts Accounts Receivable $100 $100 Bad Debt Expense Accounts Receivable $100 Bad Debt Expense $100 Allowance for Uncollectible Accounts $100 Cannot determine without Allowance for Uncollectible Accounts balance D Spock United has to write off $8,000 in uncollectible accounts receivable. What journal entry will they record using the allowance method? 8,000 Allowance for Uncollectible Accounts A Accounts Receivable 8,000 Allowance for Uncollectible Accounts B. Bad Debt Expense 8,000 8,000 8,000 Bad Debt Expense C Accounts Receivable 8,000 Bad Debt Expense 8,000 D. Allowance for Uncollectible Accounts 8.000 Berry Farms delivers and sells product worth $1,000 to a store on account. What will Berry Farm record? A Debit Accounts Receivable $1,000, credit Sales Revenue $1.000. B. Debit Cash $1,000, credit Sales Revenue $1,000 Debit Sales Revenue $1,000, credit Accounts Receivable $1,000. D. Debit Cash $1,000, credit Deferred Revenue $1,000 The normal balance of the account "Sales Returns" is a _ because A Credit; it is a contra expense account to Bad Debt Expense B Debit; it is an expense in the income statement Debit; it is a contra revenue account to Sales Revenue Credit: it is a contra asset account to Accounts Receivable Sam's Shed had account balances in Accounts Receivable of $200,500 and in Allowance for Uncollectible Accounts of $900 (debit) before any adjustments on December 31 An analysis on December 31 determined that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the end of period adjustment would be A 56,915 B, 57,815 $5,115 0.56.015 Marco Manufacturing lends cash to the CEO on August 1, 2020 and accepts a $5,000 note receivable that offers 6% interest and is due in twelve months. How would Marco Manufacturing record the year-end adjustment to accrue interest on December 31, 2020? 100 Interest Revenue Interest Receivable OA Interest Receivable 200 B. Interest Revenue Interest Receivable 125 C. Interest Revenue Interest Receivable 100 D Interest Revenue Inventory is increased in a journal entry with a . It is an account. Debit: Asset Debit: Expense Credit; Asset D. Credit: Expense Crisp Inc reported the following on Dec 31st What is the company's gross profit? Account Amount Sales Revenue Sales Allowance Cost of Goods Sold $151,000 $5,000 $76,000 Income Tax Expense $11,000 $90,000 Accounts Receivable Interest Receivable $10,000 A $70,000 B. $59,000 C $64.000 D. 575.000 On the balance sheet, inventory is classified as: Long Term Asset OA Current Liability B. Contra Asset D. Current Asset Company LMNOP purchased inventory costing $500. On February 4th Company LMNOP sold it to a customer on account for $750 dollars. How should LMNOP record the sale on February 4th? Inventory 5250 Cost of Goods Sold $250 A Sales Revenue $250 Accounts Receivable $250 Cost of Goods Sold $500 Inventory $500 Accounts Receivable $750 Sales Revenue $750 Accounts Receivable Sales Revenue C. Cost of Goods Sold $750 $250 $500 $750 $750 Cost of Goods Sold Inventory Accounts Receivable Sales Revenue $500 $500 On January 1st Adams Co has inventory of $50,000. They purchase $10,000 on January 4th and $100,000 on January 20th Ending Inventory is $20,000. What was the cost of goods sold in January? A $110.000 B. $90,000 $80.000 5140.000 Aunt Connie Corp had the following Inventory. Aunt Connie Corp makes one sale of 200 units on December 23rd and uses the FIFO method to account for inventory. What is the Cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Cost Total Cost Jan 1 Beg Inventory 100 $45 $4.500 Jan 10 Purchase 150 $40 $6.000 A Cost of Good Sold 58.500: Ending Inventory $2,000 Cost of Good Sold 58.250: Ending Inventory 52250 Cost of Good Sold 54,500: Ending Inventory 56,000 Cost of Good Sold 58.400: Ending Inventory $2,100 Aunt Connie Corp had the following inventory. Aunt Connie Corp makes one sale of 200 units on December 23rd and uses the LIFO method to account for inventory. What is the cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Jan 1 Beg. Inventory 100 $45 $4.500 Jan 10 Purchase 150 $40 $6.000 A Cost of Good Sold 58.500: Ending Inventory 52.000 B. Cost of Good Sold 58.250: Ending Inventory 52,250 Cost of Good Sold 54,500: Ending inventory 56,000 Cost of Good Sold 58,400: Ending Inventory 52.100 Aunt Didi Corp had the following Inventory. Aunt Didi Corp makes one sale of 200 units on December 23rd and uses the Weighted Average method to account for inventory. What is the Cost of Goods sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Beg. Inventory 100 $15 $1500 Jan 10 Purchase 150 $25 $3750 A Cost of Good Sold 54,000: Ending Inventory 51,250 B. Cost of Good Sold 54,500: Ending Inventory 5750 cCost of Good Sold 51.500: Ending inventory 53.750 p Cost of Good Sold 54,200: Ending Inventory $1,050 Yellow Company had the following transactions and uses a perpetual inventory system: March 1st: Bought $4,200 worth of inventory from Brown Corp on account March 5th Successfully returned $400 worth of product to Brown Corp March 25th Paid Brown Company in full What is the journal entry on March 25th that Yellow Corp would record: Account Payable Sales Discount OA Cash $4,200 $400 $3,800 $4,200 Cash B. Accounts Payable $4,200 Inventory Sales Returns Cash $4,200 $400 $3,800 Accounts Payable $3,800 $3,800 D. Cash At the end of the year, a company reports the following inventory amounts ($ per unit): Item # of Units Cost Net Realizable Value 100 $5 $6 200 $8 How much will inventory for each product need to be reduced using the lower of cost and net realizable value method? $7 A Reduce Produce X by $100 Reduce Product Y by $200 - Reduce Produce X by So Reduce Product Y by $100 Reduce Produce X by So Reduce Product Y by $200 Reduce Produce X by $100 Reduce Product Y by $0 The following are the details are from Scooter Company for 2020: Sales revenue $545,000 Interest expense $25,000 Salaries expense $62,000 Rent expense $33,000 Income tax expense $14,000 Cost of goods sold $370,000 Advertising expense $19,000 Accounts Receivable $75,000 What are the total Operating Expenses? A $175,000 B. $114,000 C. $153,000 D. 595,000 The following are the details are from Bike Company for 2020: Sales revenue $445,000 Interest expense $15,000 Salaries expense $50,000 Rent expense $59,000 Income tax expense $42,000 Cost of goods sold $250,000 Advertising expense $15,000 Accounts Receivable $75,000 The Operating Income is A Operating Income is $ 124,000. B. Operating Income is $14,000. c. Operating Income is $71,000. D. Operating Income is $195,000. Which of the following costs would be expensed not capitalized? Repairing a broken toilet in a building B. Adding a break room to an office building c Adding a new balcony to a building D. Replace appliances in a restaurant kitchen Which of the following statements is accurate about gains and losses? A loss has a Debit balance and is shown on the balance sheet. A gain has a Credit balance and is shown on the balance A sheet A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Income B. Statement A loss has a Debit balance and is shown on the Income Statement. A gain has a Credit balance and is shown on the Balance Sheet A loss has a Credit balance and is shown on the Income Statement. A gain has a Debit balance and is shown on the Income Statement The amount the company expects to receive from selling the asset at the end of its service life is A Residual value B. Always zero The estimated current market value at the time of purchase Different depending on the depreciation method used D. Crinkoff purchased a grinding machine for their factory. The following costs were incurred: $69,000 $3,000 $750 $200 $600 Purchase price Sales tax Shipping Shipping insurance between seller and factory Extended warranty for any issues over the first year For what amount should Crinkoff record on the balance sheet for the machine? $72,950 $73,550 $72,750 $77,500 D. A $25,000 piece of equipment with a useful life of 5 years and no residual value is being depreciated using the straight line Imethod. At the end of 3 years the equipment was sold for $8,000. What will the journal entry include? Acredit to loss on sale of $2000 OA A debit to residual value of $8,000 A credit to Equipment of $10,000 A debit to accumulated depreciation of 515,000 Which of the following is not an intangible asset: OA Patent Goodwill C. Trademark D. All above are intangible Home Express bought a delivery truck on January 15t 2020. The following are the details: Truck Cost $65,000 Residual value $5,000 Useful life in years Estimated Useful life in miles 50,000 If Home Express uses the straight-line method of depreciation what is the amount of depreciation expense on December 31, 2020? A $13,000 8.512.000 c514,000 D-10.000 Car Express bought a delivery truck on January 15t 2020. The following are the details: Truck cost: $75,000 Residual Value: $5,000 Useful Life years Estimate Useful Miles: 50,000 If Car Express uses the straight-line method of depreciation what is the Book Value at the end of two years on December 31, 2021? A $47.000 8. 545.000 c. 543.000 $42.000 Lawn Express bought a delivery truck on January 1st 2020. The following are the details: Truck cost: $70,000 Residual Value: $10,000 Useful Life years: Estimate Useful Miles: 50,000 If Lawn Express uses the double-declining balance method of depreciation what is the amount of depreciation expense on December 31, 2020? A $28.000 524.000 C 512.000 D525.000 Car Express bought a delivery truck on January 1st 2020. The following are the details: Truck cost: $75,000 Residual Value $5,000 Useful Life years: Estimate Useful Miles: 50,000 If Car Express uses the activity based method of depreciation and the truck is driven 10,000 miles in 2020 what is the amount of depreciation expense on December 31, 2020? A $14.000 B. 315.000 c 512,000 573.000
