Rae Company made a purchase of merchandise on credit from Tyree Corporation on August 3, for $7,000, terms 2/10, n/45. On August 10, Rae makes the appropriate payment to Tyree. The entry on August 10 for Rae Company is
Purchase Returns and Allowances140
Partridge Bookstore had 500 units on hand at January 1, costing $18 each. Purchases and sales during the month of January were as follows:
Jan. 14375 @ $28
17250 @ $20
25250 @ $22
29260 @ $32
Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows:
UnitsPer unit priceTotal
An end of the month (1/31/13) inventory showed that 140 units were on hand. How many units did the company sell during January, 2013?
Fetherston Company’s goods in transit at December 31 include:
sales madepurchases made
(1) FOB destination(3) FOB destination
(2) FOB shipping point(4) FOB shipping point
Which items should be included in Fetherston’s inventory at December 31?
(1) and (3)
(2) and (3)
(1) and (4)
(2) and (4
Romanoff Industries had the following inventory transactions occur during 2013:
The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s after-tax income using FIFO? (rounded to whole dollars)
GAAP’s provision for ownership of goods (goods-in-transit or consigned goods), as well as which costs to include in inventory, as compared to IFRS are:
Ownership of goodsCosts to include in inventory
essentially differentessentially similar
essentially similaressentially similar
essentially differentessentially different
essentially similaressentially different
In the month of November, Kinsey Company Inc. wrote checks in the amount of $9,250. In December, checks in the amount of $12,658 were written. In November, $8,468 of these checks were presented to the bank for payment, and $10,883 were presented in December. What is the amount of outstanding checks at the end of December?
Bacher Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30$15,400
Note receivable collected by bank8,400
Deposits in transit6,300
Bank service charge105
Using the above information, determine the cash balance per books (before adjustments) for the Bacher Company.
The daily cash count of cash register receipts made by department supervisors is an example of
segregation of duties.
establishment of responsibility.
independent internal verification.
An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data:
Allowance for Doubtful Accounts per books
before adjustment (Cr.)50,000
Amounts expected to become uncollectible56,000
The cash realizable value of the accounts receivable at December 31, after adjustment, is:
In reviewing the accounts receivable, the cash realizable value is $14,000 before the write-off of a $1,500 account. What is the cash realizable value after the write-off?
Under the allowance method of accounting for uncollectible accounts,
Bad Debts Expense is debited when a specific account is written off as uncollectible.
the cash realizable value of accounts receivable is greater before an account is written off than after it is written off.
the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.
Allowance for Doubtful Accounts is closed each year to Income Summary.
Herman Company has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, Herman estimates that $60,000 of its receivables are uncollectible. The amount of bad debts expense which should be reported for the year is:
A company has net credit sales of $950,000 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
When the allowance method of recognizing bad debts expense is used, the entry to recognize that expense
has no effect on net income.
decreases current assets.
increases net income.
has no effect on current assets