1. The revenue recognition standard specifies five steps to recognizing revenue. Which of the following is NOT a step in the process?
   1. Determine the transaction price
   2. Recognize revenue as soon as the goods are made
   3. Allocate the transaction price to the performance obligations
   4. Identify the contract between the company and the customer

2. Credit card discounts, sales discounts, and sales returns and allowances are all examples of what kind of account?

3. Match the following with their correct definition.

Accounts Receivable	Promise to pay a specified amount of money, at a definite date called the maturity date, and a specified amount of interest.
Notes Receivable	Created in the normal course of business when a sale of merchandise or service on credit occurs.
Trade Receivable	Created by a credit sale on an open account.
Nontrade Receivable	Arises from transactions other than the normal sale of merchandise or services.

4. When receivables are material, companies must use the allowance method to account for amounts that could be uncollectible. The end of period adjusting entry to record the estimate of the bad debt expense _____________________ (increases/decreases) the allowance for doubtful accounts. Writing off specified amounts determined to be uncollectible during the period to eliminate the specific uncollectible amount receivable and _________________ (increases/decreases) the allowance for doubtful accounts.

5. Gross sales total $500,000, half of which were credit sales. Of the credit sales, $10,000 was returned and discounts totaled 2%. Credit card sales totaled $50,000 and were subject to credit card fees of 2%. What is the dollar amount of Net Sales?

6. Assume the following for XYZ Company at the end of the accounting period:

• $25,000 in accounts receivable that have been outstanding for less than 30 days (2% estimated uncollectible)
• $5,000 in accounts receivable that have been outstanding for more than 30 days (15% estimated uncollectible)

• The current balance of the allowance accounts is $100.

XYZ uses the aging method when accounting for bad debts, record each of the journal entries:

1. At the end of the period, record the appropriate adjusting entry:

2. A few weeks later, a $200 account is deemed uncollectible:

7. When using the percentage of sales method, ABC Company expects that 3% of its credit sales totaling $10,000,000 will not be collectible at the end of the year. The current balance in the allowance account is $32,000. Record the appropriate journal entry.

8. Access the financial statements for Nike and Under Armour (10 k;s can be accessed using the IRS 2021 10 k report sec gove website) . Then, answer the following questions. Round your answer to three decimal places.

1. Compute the Receivables Turnover Ratio for Nike for the year ended May 31, 2021.

2. Compute the Receivables Turnover Ratio for Under Armour for the year ended December 31, 2020.

9. Using the ratio computed in question #8, compute the receivables turnover ratio in days. Round to the nearest full day.
   1. Nike

2. Under Armour

10. Based on the calculated ratios, which company converts sales to cash more quickly?