QUESTION 1

1. Table 6-4 Consider the following information: Cash sales $ 50,000 Credit sales 450,000 Beginning Cash 10,000 Ending Cash 14,000 Beginning Retained Earnings 35,000 Ending Retained Earnings 48,000 Beginning Accounts Receivable 30,000 Ending Accounts Receivable 40,000 Net Income 58,000 Referring to Table 6-4 and assuming a 365-day year, determine the days to collect accounts receivable.

   		28.4 days
   		31.9 days
   		304.2 days
   		30.4 days
   		125.0 days

1 points

QUESTION 2

1. Assume the periodic inventory system. Jostle Juggling sold inventory to Clarsky Circus for $9,000 cash. Which of the following is the journal entry to be made by Jostle Juggling?

   		Cash 9,000 Sales 9,000
   		Accounts Receivable 9,000 Sales 9,000
   		Cash 9,000 Accounts Payable 9,000
   		Cost of Goods Sold 9,000 Sales 9,000
   		Cash 9,000 Inventory 9,000

1 points

QUESTION 3

1. A bank overdraft

   		represents a customer's overpayment.
   		is the amount of money a company keeps as a compensating balance.
   		happens only of a company's year end.
   		is an occasional courtesy from a bank allowing an account balance to be temporarily negative.
   		is typical on a bank reconciliation.

1 points

QUESTION 4

1. Assume the periodic inventory system. Nicolla Company sold inventory on account for $6,000. A week later, the inventory was returned and a cash refund was given to the customer. Nicolla's journal entry to record the return of the inventory would be which of the following?

   		Sales Discounts 6,000 Cash 6,000
   		Sales Returns & Allowances 6,000 Cash 6,000
   		Sales Returns & Allowances 6,000 Sales 6,000
   		Sales 6,000 Accounts Receivable 6,000
   		Cash 6,000 Accounts Receivable 6,000