Review Questions for Final Exam 1201-1209 Spring 2016

Review Questions for Final Exam 1201-1209 Spring 2016 -...

This preview shows page 1 - 4 out of 14 pages.

ACCT 1201/1209 Prof. O’Kelly Financial Accounting Multiple Choice Questions and Problems Review for Final Exam Chapters 6-12 Chapter 6 MC Questions _____1. A company had the following list of adjusted account balances at year-end: Sales Returns and Allowances $1,000 Accounts Receivable 38,000 Bad Debt Expense Sales Discounts (a contra- account) 900 2,100 Sales Revenue 95,000 Allowance for Doubtful Accounts 1,200 The amount of Net Sales shown on the income statement would be A. $91,900. B. $90,700. C. $89,800. D. $53,900. _____2. When using the allowance method for accounting for bad debts, accounts receivable is reported on the balance sheet at the expected net realizable value. When bad debt expense is recorded at the end of the period, the impact: _____3. A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: 1-30 days $40,000 1.5% 31-60 days $10,000 8.0% 61-90 days $6,000 22.0% Amounts over 90 days past due are written off. The credit balance in Allowance for Doubtful Accounts was $520. The bad debt expense for the year is:
Image of page 1

Subscribe to view the full document.

A) $9,200. B) $7,200. C) $5,200. D) $2,000. _____5. An aging-of-accounts-receivable method indicates that amount of uncollectible accounts is $7,200.The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $2,000. The amount of the adjusting entry for uncollectible accounts expense should be: _____6. Using the percentage-of-sales method, you estimate that total uncollectible accounts is $6,000. The Allowance for Doubtful Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry for uncollectible accounts expense is: A) $8,000. B) $6,000. C) $4,000. D) $2,000. Chapter 7 MC Questions 1. When the FIFO method is used, ending inventory is assumed to consist of the: 2. The inventory costing method by which the first costs into inventory are the first costs out to cost of goods sold is the: 1
Image of page 2
Image of page 3

Subscribe to view the full document.

Image of page 4

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern