Question 2 of 20

5.0 Points

The physical count of inventory was incorrect; it overstated the ending inventory. This would cause the

A. cost of goods sold to be overstated.

B. cost of goods sold to be understated.

C. gross profit to be understated.

D. net income to be understated.

Question 3 of 20

5.0 Points

Which type of account is an Allowance for Doubtful Accounts?

A. Asset

B. Contra-asset

C. Revenue

D. Contra-revenue

Question 4 of 20

5.0 Points

On December 31, 2012, Brookes Horse Stables unadjusted Allowance for Doubtful Accounts showed a debit balance of $432. An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000. The year-end adjusting entry for Bad-Debts Expense includes a

A. debit to the Allowance account for $568.

B. credit to the Allowance account for $42.

C. debit to the Allowance account for $822.

D. credit to the Allowance account for $1,432.

Question 5 of 20

5.0 Points

Beginning inventory was $4,000, purchases totaled $22,000, and sales were $20,000. What is the ending inventory?

A. $2,000

B. $4,000

C. $6,000

D. $8,000

Question 6 of 20

5.0 Points

Gross Accounts Receivable is $12,000. Allowance for Doubtful Accounts has a credit balance of $600. Net sales for the year are $100,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,900 as uncollectible. What would be the adjusted balance of the Allowance account under the balance sheet approach?

A. $2,000

B. $1,400

C. $2,500

D. $1,900

Question 7 of 20

5.0 Points

The beginning Merchandise Inventory account appears in the _______ on the worksheet.

A. adjustment column

B. trial balance and the balance sheet columns

C. trial balance and adjustment columns

D. All of the above

Question 8 of 20

5.0 Points

Using the aging method, estimated uncollectible accounts are $3,000. If the balance in the Allowance for Doubtful Accounts is a $600 credit before adjustment, what is the Bad-Debts Expense adjustment for the period?

A. $3,000

B. $600

C. $2,400

D. $3,600

Question 9 of 20

5.0 Points

The Allowance for Doubtful Accounts is adjusted

A. at the end of each accounting period.

B. each time a customers debt is satisfied.

C. within one year of granting credit to a customer.

D. each time a customer is granted credit.

Question 10 of 20

5.0 Points

Fit City estimates it will collect $2,300 of the $2,425 owed by customers. The difference of $125 represents the

A. Gross Accounts Receivable.
B. Allowance for Doubtful Accounts.
C. Net Realizable Value.
D. Value of the Current Unpaid Receivables.