accounting example #52924

The entry to record the return of merchandise from a customer would include a a. debit to Sales b. credit to Sales c. debit to Customer Refunds Payable d. debit to Estimated Returns Inventory

Which of the following accounts usually has a debit balance? a. Accounts Payable b. Sales Tax Payable c. Sales d. Merchandise Inventory

Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a a. debit to Sales b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Accounts Receivable

If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as a. FOB shipping point b. FOB destination c. FOB n/30 d. FOB buyer

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is a. a deduction from the balance per company's records b. an addition to the balance per bank statement c. a deduction from the balance per bank statement d. an addition to the balance per company's records

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n) a. deduction from the balance per company's records b. addition to the balance per bank statement c. deduction from the balance per bank statement d. addition to the balance per company's records

What entry is required in the company's accounts to record outstanding checks? a. debit Accounts Receivable; credit Cash b. debit Cash; credit Accounts Receivable c. debit Cash; credit Accounts Payable d. no entry is required

Minor Company had checks outstanding totaling $19,200 on its April bank reconciliation. In May, Minor Company issued checks totaling $64,900. The May bank statement shows that $47,600 in checks cleared the bank in May. A check from one of Minor Company's customers of $300 was also returned marked "NSF." The amount of outstanding checks on Minor Company's May bank reconciliation should be a. $28,400 b. $66,800 c. $17,300 d. $36,500

A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a a. credit to Petty Cash for $29 b. debit to Cash for $83 c. debit to Cash Short and Over for $13 d. credit to Cash for $54

Entries are made to the petty cash account when a. making payments out of the fund b. recording shortages in the fund c. replenishing the petty cash fund d. establishing the fund

Cash equivalents include a. checks b. coins and currency c. money market accounts and commercial paper d. stocks and short-term bonds

A note receivable due in 18 months is listed on the balance sheet under the caption a. long-term liabilities b. fixed assets c. current assets d. investments

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a. ​Uncollectible Accounts Expense b. ​Accounts Receivable c. ​Allowance for Doubtful Accounts d. ​Interest Expense

One of the weaknesses of the direct write-off method is that it a. understates accounts receivable on the balance sheet b. violates the matching principle c. is too difficult to use for many companies d. is based on estimates

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of accounts receivable? a. $51,000 b. $289,000 c. $340,000 d. $391,000

What is the type of account and normal balance of Allowance for Doubtful Accounts? a. contra asset, credit b. asset, debit c. asset, credit d. contra asset, debit

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when a. a customer's account becomes past due b. an account becomes bad and is written off c. a sale is made d. management estimates the amount of uncollectibles

A debit balance in the Allowance for Doubtful Accounts a. is the normal balance for that account b. indicates that actual bad debt write-offs have been less than what was estimated c. cannot occur if the percentage of receivables method of estimating bad debts is used d. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts

Selling receivables is called​ a. ​factoring b. ​sales revenue c. ​a factor d. ​sold receivables

To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a a. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts b. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts c. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable d. debit to Loss on Credit Sales and a credit to Accounts Receivable

Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a a. credit to Bad Debt Expense b. credit to Accounts Receivable c. debit to Allowance for Doubtful Accounts d. debit to Accounts Receivable

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000.​ Which of the following is correct regarding the entry to record estimated uncollectible receivables? a. ​Cash will be debited b. ​Bad Debt Expense will be credited c. ​Allowance for Doubtful Accounts will be credited d. ​Accounts Receivable will be debited

A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is a. $10,000 b. $10,150 c. $10,900 d. $9,100

On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a. $0 b. $450 c. $900 d. $1,800

The journal entry to record a note received from a customer to replace an account is a. debit Notes Receivable; credit Accounts Receivable b. debit Accounts Receivable; credit Notes Receivable c. debit Cash; credit Notes Receivable d. debit Notes Receivable; credit Notes Payable

Current assets are usually listed in order a. of the due date b. of the size c. alphabetically d. of liquidity

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry? a. debit Accounts Payable; credit Merchandise Inventory b. debit Merchandise Inventory; credit Accounts Payable c. debit Merchandise Inventory; credit Cash Discounts d. debit Merchandise Inventory; credit Purchases

Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a a. credit to Customer Refunds Payable b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. debit to Cash

Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method. a. $364 b. $372 c. $324 d. $320

Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method. a. $324 b. $372 c. $320 d. $364

If the physical count of inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage? a. debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000 b. debit Merchandise Inventory, $5,000; credit Cost of Merchandise Sold, $5,000 c. debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000 d. debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000

Under the perpetual inventory system, all purchases of merchandise are debited to the account a. Merchandise Inventory b. Cost of Merchandise Sold c. Cost of Merchandise Available for Sale d. Purchases

Who is responsible for the freight costs when the terms are FOB shipping point? a. the ultimate customer b. the buyer c. the seller d. either the seller or the buyer

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. debit to Accounts Payable b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Sales

When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a a. debit to Merchandise Inventory; a credit to Cash b. debit to Cash; a credit to Merchandise Inventory c. debit to Cash; a credit to Sales d. debit to Sales; a credit to Accounts Payable

President's salaries, depreciation of office furniture, and office supplies are a. selling expenses b. miscellaneous expenses c. administrative expenses d. inventory expenses

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a a. debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales b. debit to Cash and a credit to Sales c. debit to Cash, credit to Credit Card Expense, and a credit to Sales d. debit to Sales, debit to Credit Card Expense, and a credit to Cash

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are a. consigned b. n/30 c. FOB shipping point d. FOB destination