You are watching: When recording credit card or debit card sales using the net method,
When recording credit card or delittle bit card sales making use of the net method,a.) cash received equates to sales.b.) cash received equates to sales minus the fee assessed by the card handling firm.c.) cash received equates to sales plus the fee assessed by the card handling agency.d.) cash isn"t received by the seller until the customer pays his or her credit card statement.
Which of the adhering to is a limitation of the direct write-off approach of bookkeeping for uncollectibles?a.) The direct write-off method oversays assets on the balance sheet.b.) The straight write-off method does not enhance costs against revenue exceptionally well.c.) The straight write-off approach does not put up an allowance for uncollectibles.d.) All of the above
The entry to record a write-off of an uncollectible account when using the direct write-off method entails aa.) delittle bit to Allowance for Bad Debtsb.) crmodify to Cashc.) delittle bit to Accounts Receivable.d.) delittle to Bad Debts Expense.
Brickmale Corporation provides the allowance approach to account for uncollectible receivables. At the start of the year, Allowance for Bad Debts had a crmodify balance of $1,000. During the year Brickguy created off uncollectible recievables of $2,100. Brickmale tape-recorded Bad Debts Expense of $2,700. What is Brickman"s year-finish balance in Allowance for Bad Debts? a.) $1,600b.)$4,800c.)$3,700d.)$600
Brickman"s finishing balance of Accounts Receivables is $19,500. Use the data in the coming before question to compute the net realizable worth of Accounts Receivable at year-end.a.) $16,800b.) $19,500c.) $17,400d.) $17,900
At December 31 year-finish, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note. What will certainly Crain"s financial statements report for this situation?a.) The balance sheet will certainly report the note receivable of $8,400.b.) The balance sheet will report the note receivable of $8,400 and interemainder receivable of $700.c.) Nopoint bereason the service has not obtained the cash yet.d.) The earnings statement will report a note receivable of $8,400.
Using the information in the preceding question, what will the revenue statement for the year ended December 31 report for this situation?a.) Nopoint bereason the service has actually not obtained the cash yet.b.) Note receivable of $8,400.c.) Interest revenue of $700.d.) Both b and also c.
At year-finish, Schulz, Inc. has actually cash of $11,600, present accounts receivalbe of $48,900, merchandise inventory of $37,900, and prepaid costs totaling $5,100. Liabilities of $55,900 should be passist following year. What is Schultz"s acid-test ratio?a.) 1.08b.) 0.21c.) 1.76d.) Cannot be identified from the information given
Using the information in the coming before question, assume accounts receivable had actually a start balance of $67,400 and also net crmodify sales for the present year totaled $807,800. How many kind of days did it take Schultz to collect its average level of receivables?a.) 49b.) 35c.) 29d.) 26
Which price is not recorded as component of the price of a building?a.) Real estate commission phelp to buy the structure.b.) Construction products and also labor.c.) Concrete for the building"s foundation.d.) Annual structure maintenance.
How must you record a capital expenditure?a.) Delittle a licapability.b.) Delittle funding.c.) Debit an cost.d.) Delittle an asset.
Which technique virtually constantly produces the the majority of depreciation in the initially year?a.) Units-of-production.b.) Straight-linec.) Double-declining-balance.d.) All produce the exact same depreciation in the initially year.
A Celty Airline jet prices 28,000,000 and also is supposed to fly 200,000,000 miles during its 10-year life. Residual worth is supposed to be zero because the aircraft was used once gained. If the plane travels 1,000,000 miles the initially year, exactly how a lot depreciation should Celty Airline document under the units-of-manufacturing method?a.) $2,800,000b.) $140,000c.) $560,000d.) Cannot be determined from the data given
A copy machine prices $45,000 when new and also has actually collected depreciation of $44,000. Suppose Print and also Photo Center junks this machine and receives nothing. What is the outcome of the disposal transaction?a.) No gain or lossb.) Gain of $1,000c.) Loss of $1,000d.) No gain or loss
Suppose Print and Picture Center in the preceding question marketed the machine for $1,000. What is the outcome of this disposal transaction? a.)Loss of $44,000b.) Gain of $1,000c.) Loss of $1,000d.) No gain or loss
Which technique is provided to compute depletion?a.) Double-declining-balance method.b.) Straight-line methodc.) Depletion strategy.d.) Units-of-manufacturing technique.
Liberty Corporation reported beginning and also finishing complete assets of $25,000 and also $22,000, respectively. Its net sales for the year were $18,800. What was Liberty"s asset turnover ratio?a.) 0.75b.) 0.85c.) 0.80d.) 1.25
A truck costs $50,000 when brand-new and also has actually acccumulated depreciation of $35,000. Suppose Wilkid Towing extransforms the truck for a brand-new truck. The new truck has actually a market value of $60,000, and also Wilboy pays cash of $40,000. Assume the exreadjust has commercial substance. What is the outcome of this exchange?a.) No get or lossb.) Gain of 5,000c.) Loss of 5,000d.) Gain of $45,000
Which of the following statements, concerning notes receivable, is incorrect?A.) All notes receivable are thought about long−term assets.B.) Notes receivable are occasionally called promissory notes.C.) A notes receivable is a composed promise that a customer will pay a solved amount of principal plus interest by a particular day in the future.D.) Notes receivable typically have actually longer terms than accounts receivable.
Which of the complying with is a weak internal manage over cash collections from receivables?A.) In order to stop losing sales, all customers" credit applications have to be apverified.B.) A company need to have written approval criteria for processing customers" crmodify applications.C.) The crmodify department need to have no access to cash.D.) A crmodify department must evaluate customers" credit applications to determine whether they accomplish the company"s approval requirements.
See more: Were Necessary For The Transport Of Raw Materials In The Industrial Revolution
Markus Company type of maintains a sepaprice accounts receivable account for each customer. On June 18, Markus sells $6,400 services on account to customer Anthony and $1,000 services on account to customer Walker. How will these two transactions influence the regulate and subsidiary accounts?A.) After posting this sales transaction, the amount of the balances in subsidiary accounts receivable will certainly not equal the regulate account balance. B.) The manage account will certainly have a delittle bit balance and the subsidiary accounts will have a credit balance. This keeps the audit equation in balance.C.) The individual customer accounts in the subsidiary ledger will certainly be increased via credits.D.) The control account, Accounts Receivable, will certainly be increased via a delittle of $7,400.
When a company provides the allowance approach to meacertain bad debts, A.) the Allowance for Bad Debts account balance is included to the balance of the Accounts Receivable account to arrive at the net realizable valueB.) the amount of bad debts price is estimated at the end of the accountancy periodC.) the Bad Debts Expense account is debited as soon as an account is composed offD.) the Allowance for Bad Debts account is debited as soon as the poor debts cost is estimated
Accounts Receivable has actually a balance of $31,000, and the Allowance for Bad Debts has actually a credit balance of $3,000. The allowance method is provided. What is the net realizable worth of Accounts Receivable prior to and also after a $2,000 account receivable is written off? A.) $26,000; $30,000B.) $28,000; $28,000C.) $28,000; $26,000D.)$26,000; $26,000
Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a crmodify balance of $410. The allowance approach is supplied. What is the net realizable worth of Accounts Receivable after a $170 account receivable is written off? A.)$5,760B.) $5,420C.) $6,000D.) $5,590
The Allowance for Bad Debts has actually a credit balance of $8,000 before the adjusting entry for poor debts price. After analyzing the accounts in the accounts receivable subsidiary ledger utilizing the aging−of− receivables method, the company"s administration approximates that uncollectible accounts will certainly be $17,000. What will be the amount of Bad Debts Expense reported on the income statement? A.) $8,000B.) $9,000C.) $17,000D.) $25,000
On October 1, 2017, Ealys Jewelers embraced a 4minus−month, 11% note for $6,000 in settlement of an overdue account receivable. The accounting period ends on December 31. Calculate the accrued interest on the note at December 31, 2017. (Round any type of intermediate calculations to two decimal places, and your final answer to the nearest dollar.)A.) $220B.) $330C.) $660D.) $165
Roberts Construction Group paid$5,000 for a plant ascollection that had actually a market value of $16,500. At which of the adhering to quantities have to the plant asset be recorded?A.) $2,500B.) $5,000C.) $16,500D.) $10,000
Which of the complying with is included in the expense of land?A.) expense of outdoor lightingB.) brokerage commissionC.) expense of fencingD.) expense of paving
Danube Corp. purchased a offered machine for $15,000. The machine required installation prices of $7,000 and also insurance while in transit of $1,300. At which of the complying with quantities would certainly the machine be recorded? A.) $16,300B.) $22,000C.) $23,300D.) $15,000
On January 1, 2016, Martini, Inc. gained a machine for $1,050,000. The estimated valuable life of the asset is five years. Residual value at the finish of 5 years is estimated to be $100,000. What is the book value of the machine at the finish of 2017 if the firm uses the straight−line method of depreciation?A.) $629,996B.) $630,000C.) $670,000D.) $570,000
The price of an asset is >180,000, and its residual worth is 220,000. Estimated helpful life of the ascollection is 4 years. Calculate depreciation for the first year making use of the double−declining−balance strategy of depreciation. (Do not round any kind of intermediate calculations, and also round your last answer to the nearest dollar.).A.) $480,000B.) $590,000C.) $240,000D.) $295,000
Radar, Inc. purchased a van on January 1, 2016, for $900,000. Estimated life of the van was five years, and its approximated residual worth was $92,000. Radar offers the straight−line method of depreciation. At the beginning of 2018, the corporation revised the complete approximated life of the ascollection from 5 years to six years. The estimated residual worth remained the exact same as approximated previously. Calculate the depreciation cost for 2018.A.) $144,200B.) $161,600C.) $80,800D.) $121,200
An asset was purchased for $27,000 on January 1, 2016. The asset"s approximated helpful life was five years, and its residual value was $5,000. The straight−line strategy of depreciation was supplied. Calculate the get or loss if the ascollection is offered for $22,000 on December 31, 2016, the last day of the accountancy period.A.) 600 loss B.) $300 gainC.) 600 acquire D.) no obtain or no loss
A coal mine price $1,000,000 and is approximated to host 60,000 tons of coal. There is no residual value. Throughout the initially year of operations, 8,000 tons are extracted and also offered. Calculate depletion per unit. (Round your answer to the nearest cent.)A.) $4.17B.) 16.67C.) $12.50D.) $8.34
On October 1, 2017, Nurix, Inc. purchased a patent for $212,000 cash. Although the patent provides legal security for 20 years, the patent is meant to be supplied for only 10 years. What will certainly be the balance in the patent account on September 30, 2018?A.) $212,000B.) $106,000C.) $190,800D.) $201,400