Question 5

Sanchez Company engaged in the following transactions during Year 1:

1) Started the business by issuing $12,300 of common stock for cash.

2) The company paid cash to purchase $7500 of inventory.

3) The company sold inventory that cost $4900 for $9900 cash.

4) Operating expenses incurred and paid during the year, $4400.

Sanchez Company engaged in the following transactions during Year 2:

1) The company paid cash to purchase $10,600 of inventory.

2) The company sold inventory that cost $9100 for $16,500 cash.

3) Operating expenses incurred and paid during the year, $5400.

Note: Sanchez uses the perpetual inventory system.

What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2?

$7400

$2600

$11,900

$2000

1 points

Question 6

The balance sheets of Davidson Corporation reported net fixed assets of $350,000 at the end of 2018. The fixed-asset turnover ratio for 2018 was 5.0, and sales for the year totaled $1,495,000. Net fixed assets at the end of 2017 were:

$299,000.

$248,000.

$197,000.

None of these answer choices are correct.

1 points

Question 7

Warren Company began the accounting period with a $36,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $84,000. The accounts receivable account at the end of the accounting period contained a $18,000 debit balance. Based on this information, what is the amount of cash collected from customers during the period?

$102,000

$90,000

$30,000

$72,000

1 points

Question 8

Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $474,000 and $1550 respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $333,000 and $308,000, respectively, and $1770 in accounts receivable were written off.

Calistoga's 2018 bad debt expense is:

$1540.

$1665.

$1545.

$1650

QUESTIONS Sanches Company engaged in the following transactions during Yeart 1) Scared the business by line 512.300 of common stock for cash The company Operating inventory that incurred for cash year. $4600 Sanchez Company engaged in the following transaction during Year 2 1) The company paid the purchase $10.600 of inventory 2) The company inventory Chaco 9700 for $16.500 cash Nine: Sanches the w orytem What is the amount of retained earnings that will be shown on the balance sheet December 31. You O $2000 O $2000 QUESTIONG The balance of Davidson Corporation reported need to $350 000 the end of 2011. Ther- turnover for 2018 was 5.0 and sales for the year old $1495,000. Need the OH None of the QUESTION Warren Camarbet O $102.000 e with a 13.000 receivable During the recorrer The even O 0000 O $72.000 QUESTIONS Produce a 3353.000 and $300.000 ce bad debe and $1770 in and of credit The company reprodu unsere were written wance for December use of 44.000 2017. During 2011 C a ries O $15.00 O 1665 91650