1The Reingold Hat Company uses the allowance method to account for bad debts. During 2018, the company recorded $800,000 in credit sales. At the end of 2018, account balances were: Accounts receivable, $120,000; Allowance for uncollectible accounts, $3,000 (credit). If bad debt expense is estimated to be 3% of credit sales, the appropriate adjusting entry will include a debit to bad debt expense of:Multiple ChoiceZero.$27,000$21,000$24,0002The replenishment of a petty cash fund might include which of the following?Multiple ChoiceA debit to cash.A debit to petty cash.A debit to office supplies expense.A credit to petty cash.3In a bank reconciliation, NSF checks are:Multiple ChoiceSubtracted from the bank balance.Added to the book balance.Added to the bank balance.Subtracted from the book balance. 4Alvin Electronics is in the process of reconciling its bank account for the month of November. The following information is available:Balance per bank statement$8,325Outstanding checks2,400Deposits outstanding1,215Bank service charges for November35Check written by Alvin for $300 but recorded incorrectly byAlvin as a $30 disbursement. What should be the corrected cash balance at the end of November?Multiple Choice$6,870$7,140$6,835$7,1055On November 10 of the current year, Flores Mills sold carpet to a customer for $8,200 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10?Multiple ChoiceAccounts receivable8,036Sales8,036Accounts receivable8,200Sales8,200 Accounts receivable8,200Cash discounts164Sales8,036Accounts receivable8,036Cash discounts164Sales8,2006On November 10 of the current year, Flores Mills sold carpet to a customer for $8,600 with credit terms 4/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?Multiple ChoiceCash8,600Sales discounts344Accounts receivable8,600Sales344Cash8,256Accounts receivable8,256Cash8,256Sales344Accounts receivable8,600Cash8,256Sales discounts344Accounts receivable8,6007Harvey’s Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60. Harvey uses the net method of accounting for cash discounts.What entry would Harvey’s make on April 12?Multiple ChoiceAccounts receivable46,000Sales46,000Accounts receivable46,000Sales45,540Sales discounts460Accounts receivable45,540Sales45,540Accounts receivable45,540Sales discounts460Sales46,0008The following information relates to Halloran Co.’s accounts receivable for 2018:Accounts receivable balance, 1/1/2018$840,000Credit sales for 20183,380,000Accounts receivable written off during 201853,000Collections from customers during 20182,980,000Allowance for uncollectible accounts balance, 12/31/2018220,000What amount should Halloran report for accounts receivable, before allowances, at December 31, 2018?Multiple Choice$1,187,000.$1,240,000.$967,000.None of these answer choices are correct.9As of January 1, 2018, Farley Co. had a credit balance of $532,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley’s credit sales have been uncollectible. During 2018, Farley wrote off $634,000 of accounts receivable. Credit sales for 2018 were $18,300,000. In its December 31, 2018, balance sheet, what amount should Farley report as allowance for uncollectible accounts?Multiple Choice$366,000.$468,000.$898,000.$264,000.10On July 1, 2018, Cromartie Furniture established a $150 petty cash fund. A check for $150 was made out to the petty cash custodian. During July, the petty cash custodian paid the following bills from the petty cash fund:Office supplies$36Postage22Delivery charges40Bottled water28Total$126At the end of July the petty cash fund was replenished. The journal entry to replenish the petty cash fund includes:Multiple ChoiceA credit to petty cash and a debit to various expenses for $126.A debit to petty cash and a credit to cash for $150.A credit to cash and a debit to various expenses for $126. None of these answer choices are correct.
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