Please help answer the questions on the attached practice quiz 7 for financial accounting.
CHAPTER 7 PRACTICE QUIZ Data Co. has asked you to assist in the preparation of a bank reconciliation at the end of July. Answer questions 1-3 using the following code letters to indicate how the item described would be reported on the bank reconciliation. A. B. C. D. E. Add to the bank statement balance Deduct from the bank statement balance Add to the book balance Deduct from the book balance Does not belong on the bank reconciliation 1. Note and interest collected by the bank for the company, $500 (plus $25 interest). 2. Deposit in transit, $400. 3. Check no. 662 for written for $730 was incorrectly recorded by the bank as $370. 4. If a bank reconciliation includes an NSF check for $45, the journal entry to record this reconciling item would include: A. a credit to Cash. B. a debit to Cash. C. a credit to Accounts Receivable. D. no entry. No entry is required. 5. All of the following are procedures that should be followed for cash received by mail EXCEPT that: C A. all incoming mail should be opened by a high-level, trusted employee. B. the debit to the Cash account should match the bank deposit. C. the controller should compare the day's cash receipts to the bank deposit. D D. the remittance advices should be sent to the accounting department. E 6. All of the following are internal controls over cash payments EXCEPT that: A. all payments should be made by check. B. before payment is made, it should first be authorized by the treasurer. C. the invoice should be compared with a copy of the purchase order and receiving report. D. small payments should be made from a petty cash fund. Table 7-1 On December 31, 2012, Zeb Company reported the following amounts and account balances (before adjustments): Accounts Receivable $ 840,000 Allowance for Uncollectible Accounts, credit 22,050 Net Sales (all on credit) 3,850,000 7. 8. Refer to Table 7-1. Zeb Co. estimates that its Uncollectible Account Expense is 2 % of net sales. The Uncollectible-Account Expense for 2012 should be: A. $21,000. C. $118,300. B. $74,200. D. $ 96,250. Refer to Table 7-1. Zeb Co. uses an aging schedule to estimate uncollectible accounts. The aging of accounts receivable and the percentage of each category that is estimated to be uncollectible is: Current $455,000 2% 1 - 30 days past due 315,000 15% Over 30 days past due 70,000 55% The balance in the Allowance for Uncollectible Accounts after the adjustment should be: A. $ 94,850. C. $ 72,800. B. $116,900. D. $169,050. 9. The December 31, 2011 balance sheet of Miller Company reported the following information: Accounts Receivable $197,400 Allowance for Uncollectible Accounts 8,600 During 2012, a $520 account receivable from Alexis Co. is written off. As a result, A. Miller's net accounts receivable will equal $188,800. B. Miller will record a debit to Uncollectible Account Expense for $520. C. Miller's net income will decrease by $520. D. Miller will record a credit to Allowance for Uncollectible Accounts of $520. 10. On July 7 a 5%, 90 day, $2,600 note receivable is accepted from a customer for the sale of farm equipment. Which of the following is correct? Due Date Maturity Value A. 10/4 $2,600.00 B. 10/5 $2,730.00 C. 10/5 $2,632.50 D. 10/6 $2,632.50
