Principles of Accounting I Test Bank 20171.docx -...

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Principles of Accounting ITest BankDr. LilianChapter 91.Homeplate sells softball equipment. On November 14, they shipped $4,000 worth of softballuniforms to Bonita Middle School, terms 2/10, n/30. On November 21, they received anorder from Vista High School for $1,500 worth of custom printed bats to be produced inDecember. On November 30, Bonita Middle School returned $200 of defectivemerchandise. Homeplate has received no payments from either school as of month end.What amount will be recognized as net accounts receivable on the balance sheet as ofNovember 30?a.$3,800b.$4,000c.$5,300d.$5,500Ans: A,Solution: $4,000$200$3,800
2.Cosmos Company on July 15 sells merchandise on account to Cajon Co. for $6,000,terms 2/10, n/30. On July 20 Cajon Co. returns merchandise worth $1,000 to CosmosCompany. On July 24 payment is received from Cajon Co. for the balance due. What isthe amount of cash received?
3.An aging of a company's accounts receivable indicates that $13,000 are estimated to beuncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, theadjustment to record bad debts for the period will require a
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4.Valli Company uses the percentage of sales method for recording bad debts expense. For theyear, cash sales are $700,000 and credit sales are $2,500,000. Management estimatesthat 1% is the sales percentage to use. What adjusting entry will Valli Company make torecord the bad debts expense?

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Term
Fall
Professor
Dr. Khosh

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