Accounting Final Review: Chapters 9, 10, 11 (1st Attempt)

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

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?

Selling receivables

The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles

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?

Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be

Paper Company receives a $6,000, three-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?

The amount of the promissory note plus the interest earned on the due date is called the

A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. The face value of the note is

When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include a

When referring to a note receivable or promissory note,

Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded

An alternative name for Bad Debt Expense is

The journal entry to record a note received from a customer to replace an account is

A debit balance in Allowance for Doubtful Accounts

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

The name, term, or symbol used to identify a business and its products is called

Expenditures for research and development are generally recorded as

On December 31, Strike Company sold one of its batting cages for $20,000. The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is

Accumulated Depreciation

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,000, at what cost will the new equipment be recorded in the books?

A fixed asset's estimated value at the time it is to be retired from service is called

Which of the following should be included in the acquisition cost of a piece of equipment?

A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of

An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only four years with a residual value of $2,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

On December 31, Strike Company sold one of its batting cages for $50,000. The equipment had an original cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

Which of the following is an example of a capital expenditure?

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

Which of the following are criteria for determining whether to record an asset as a fixed asset?

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours?

The formula for depreciable cost is

Excom sells radios, and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 100 radios for $50 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense?

Crafter Company has the following assets and liabilities: ​ Assets Cash $28,000 Accounts receivable 15,000 Inventory 20,000 Equipment 50,000 Liabilities Current portion of long-term debt $10,000 Accounts payable 2,000 Long-term debt 25,000 ​ Determine the quick ratio (rounded to one decimal point).

Vacation pay payable is reported on the balance sheet as a(n)

Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $14,000 Social security and Medicare taxes withheld 1,050 Income taxes withheld 2,600 Retirement savings 1,000 ​ The entry to record the payment of net pay would include a

On July 8, Jones Inc. issued an $80,000, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year?

Scott Company sells merchandise with a one-year warranty. Sales consisted of 2,500 units in Year 1 and 2,000 units in Year 2. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2 for the Year 1 sales. Similarly, 30% of repairs will be made in Year 2 and 70% in Year 3 for the Year 2 sales. In the Year 3 income statement, how much of the warranty expense shown will be due to Year 1 sales?

A current liability is a debt that is reasonably expected to be paid

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

An unfunded pension liability is reported on the balance sheet as

The employee's earnings record would contain which of the following data that the payroll register would probably not contain?

Sadie White receives an hourly wage rate of $30, with time-and-a-half pay for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?

Which of the following will have no effect on an employee's take-home pay?

Which of the following taxes would be deducted in determining an employee's net pay?

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

The following totals for the month of April were taken from the payroll register of Magnum Company: ​ Salaries $10,000 FICA taxes withheld 750 Income taxes withheld 2,000 Medical insurance deductions 450 Unemployment taxes 420 ​ The entry to record the accrual of the employer's payroll taxes would include a