Use the following data to answer questions 13-15 On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts 13. What entry would Cherokee make on November 10? a. DR Accounts Receivable 7.840. CR Sales 7.840 b. DR Accounts Receivable 8.000. CR Sales 8.000 G. DR Accounts Receivable 8,000, CR Cash Discounts 160, CR Sales 7,840 d. DR Accounts Receivable 7,840, DR Cash Discounts 150, CR Sales 8,000 14. What entry would Cherokee make on November 17, assuming the correct payment was received on that date? a. DR Cash 7840, DR Sales 160, CR Accounts Receivable 8000 b. DR Cash 8000, DR Sales Discounts 160, CR Accounts Receivable 8000, CR Sales 150 C. DR Cash 7940. DR Sales Discounts 160, CR Accounts Receivable 8000 d. DR Cash 7840, CR Accounts Receivable 7840 15. What entry would Cherokee make on December 10, assuming the correct payment was received on that date? a. DR Cash 8000, CR Accounts Receivable 7840, CR Discounts Revenue 160 b. DR Cash 8000, CR Accounts Receivable 8000 C. DR Cash 8000, CR Accounts Receivable 7840, CR Sales Discounts Forfelted 150 d. DR Cash 8160, Credit Accounts Receivable 8000, CR Sales Discounts Forfeited 160 16. Cash may not include a. Undeposited customer checks b. Restricted cash C. Money orders d, Foreign currency 17. Ireland Corporation obtained a $10,000 note recevable from a customer on June 30, 2018. The note, along with interest at 6% is due on June 30, 2019. on September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank? a. $35,000 b. $36.820 C. $39,220 d. $40,600 18. Which of the following is considered a sale of receivables? a. Factoring receivables without recourse b. Assigning receivables c. Pledging receivables d. None of these are correct 19. Which of the following is truest regarding consignment arrangements? a. Revenue is never recognized because GAAP does not allow such arrangements b. Revenue is recognized when goods are transferred to the cosignee c. Revenue is recognized upon sale by the cosignee to an end customer d. Revenue is recognized at the point in time when the consignment arrangement is made Use the following data to answer the questions 20-22 Calistoga Produce estimates bad debt expense at % of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. 20. Calistoga's accounts receivable at December 31, 2018 are: a. $469,280 b. $473,280 c. $465,280 d. $467,000 21. Calistoga's 2018 bad debt expense is: a. $1,575 b. $1,650 C. $1,505 d. $1,720 22. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2018 is: a. $1,720 b. $1,505 C. $1,575 d. $1,650 23. The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2018: Days Outstanding Amount Estimated % Uncollectible 0-30 $420,000 2% 31 60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2018? a. $31,400 b. $28,000 C. $19,400 d. $55,400 24. Which of the following is not true about revenue recognition with respect to long-term construction contracts? a. Long-term construction contracts require accounting for construction in progress as well as billlings to customers b. Long-term construction contracts often satisfy the criteria for recognizing revenue over time C. Long-term construction contracts typically include multiple performance obligations because of all the different types of goods or services included for each project d. Long-term construction contracts often are viewed as having a single performance abligatian, because goods or services fail at the "separately identifiable criterion Use the following data to answer questions 13-15 On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts 13. What entry would Cherokee make on November 10? a. DR Accounts Receivable 7.840. CR Sales 7.840 b. DR Accounts Receivable 8.000. CR Sales 8.000 G. DR Accounts Receivable 8,000, CR Cash Discounts 160, CR Sales 7,840 d. DR Accounts Receivable 7,840, DR Cash Discounts 150, CR Sales 8,000 14. What entry would Cherokee make on November 17, assuming the correct payment was received on that date? a. DR Cash 7840, DR Sales 160, CR Accounts Receivable 8000 b. DR Cash 8000, DR Sales Discounts 160, CR Accounts Receivable 8000, CR Sales 150 C. DR Cash 7940. DR Sales Discounts 160, CR Accounts Receivable 8000 d. DR Cash 7840, CR Accounts Receivable 7840 15. What entry would Cherokee make on December 10, assuming the correct payment was received on that date? a. DR Cash 8000, CR Accounts Receivable 7840, CR Discounts Revenue 160 b. DR Cash 8000, CR Accounts Receivable 8000 C. DR Cash 8000, CR Accounts Receivable 7840, CR Sales Discounts Forfelted 150 d. DR Cash 8160, Credit Accounts Receivable 8000, CR Sales Discounts Forfeited 160 16. Cash may not include a. Undeposited customer checks b. Restricted cash C. Money orders d, Foreign currency 17. Ireland Corporation obtained a $10,000 note recevable from a customer on June 30, 2018. The note, along with interest at 6% is due on June 30, 2019. on September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank? a. $35,000 b. $36.820 C. $39,220 d. $40,600 18. Which of the following is considered a sale of receivables? a. Factoring receivables without recourse b. Assigning receivables c. Pledging receivables d. None of these are correct 19. Which of the following is truest regarding consignment arrangements? a. Revenue is never recognized because GAAP does not allow such arrangements b. Revenue is recognized when goods are transferred to the cosignee c. Revenue is recognized upon sale by the cosignee to an end customer d. Revenue is recognized at the point in time when the consignment arrangement is made Use the following data to answer the questions 20-22 Calistoga Produce estimates bad debt expense at % of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. 20. Calistoga's accounts receivable at December 31, 2018 are: a. $469,280 b. $473,280 c. $465,280 d. $467,000 21. Calistoga's 2018 bad debt expense is: a. $1,575 b. $1,650 C. $1,505 d. $1,720 22. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2018 is: a. $1,720 b. $1,505 C. $1,575 d. $1,650 23. The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2018: Days Outstanding Amount Estimated % Uncollectible 0-30 $420,000 2% 31 60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2018? a. $31,400 b. $28,000 C. $19,400 d. $55,400 24. Which of the following is not true about revenue recognition with respect to long-term construction contracts? a. Long-term construction contracts require accounting for construction in progress as well as billlings to customers b. Long-term construction contracts often satisfy the criteria for recognizing revenue over time C. Long-term construction contracts typically include multiple performance obligations because of all the different types of goods or services included for each project d. Long-term construction contracts often are viewed as having a single performance abligatian, because goods or services fail at the "separately identifiable criterion
