ACCT 220-Credit sales of assets other than merchandise are recorded in the

ACCT 220-Credit sales of assets other than merchandise are recorded in the

Subject: Business / Accounting
Question
Question:1. Credit sales of assets other than merchandise are recorded in the
Question 1 options:

a. cash payments journal.

b. cash receipts journal.

c. general journal.

d. sales journal.

2. In preparing its bank reconciliation for the month of April 2014, Dimensions, Inc. has available the following information.

Balance per bank statement, 4/30/14 $40,920

NSF check returned with 4/30/14 bank statement 1,350

Deposits in transit, 4/30/14 10,500

Outstanding checks, 4/30/14 15,600

Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2014?

Question 2 options:

a. $34,410.

b. $34,470.

c. $35,760.

d. $35,820.

3. An adjusting entry is not required for

Question 3 options:

a. outstanding checks.

b. collection of a note by the bank.

c. NSF checks.

d. bank service charges.

4. An aging of a company’s accounts receivable indicates that $3,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $800 debit balance, the adjustment to record bad debts for the period will require a

Question 4 options:

a. debit to Bad Debt Expense for $2,200.

b. debit to Bad Debt Expense for $3,000.

c. debit to Bad Debt Expense for $3,800.

d. credit to Allowance for Doubtful Accounts for $800.

5. A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

Question 5 options:

a. $13,000.

b. $15,000.

c. $15,040.

d. $17,000.

6. In 2014, Hero Company had net credit sales of $1,125,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2014, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $380,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

Question 6 options:

a. $23,000

b. $38,000

c. $53,000

d. $97,500

7. Bright Company purchased factory equipment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the Bright Company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be

Question 7 options:

a. $280,000.

b. $168,000.

c. $252,000.

d. $120,960.

8. On October 1, 2014, South Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the depreciation expense for 2014 if South Company uses the straight-line method of depreciation?

Question 8 options:

a. $4,500

b. $24,000

c. $6,000

d. $12,000

Kerwin Company sold equipment on January 1, 2016 for $20,000. The equipment had cost $96,000. The balance in Accumulated Depreciation at January 1 is $80,000. What entry would Kerwin make to record the sale of the equipment?

Question 9 options

The following information is available for Drew Enterprises for the year ended December 31, 2015:

Accounts payable $ 7,600

Accumulated depreciation-equipment 8,000

Owner’s capital 18,600

Intangible assets 4,600

Notes payable (due in 5 years) 10,000

Accounts receivable 3,000

Cash 5,600

Short-term investments 2,000

Equipment 17,600

Long-term investments 11,400