quiz6 - Question 1 Question 1 1. Peterson Company has the...

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Unformatted text preview: Question 1 Question 1 1. Peterson Company has the following items at year end: Cash in bank $20,000 Petty cash 300 Short term paper with maturity of 2 months 5,500 Postdated checks 1,400 Peterson should report cash and cash equivalents of Answer $20,000. $20,300. $25,800. $27,200. 0.5 points Question 2 Question 2 1. Turner had a January 1, 2009 balance in the Allowance for Doubtful Accounts of $10,000. During 2009, it wrote of $7,200 of accounts and collected $2,100 on accounts previously written off. The blance in Accounts Receivable was $200,000 at January 1 and $240,000 at December 31. At December 31, 2009, Turner estimates that 5% of accounts receivable will prove to be uncollectible. What is the bad debt expense for 2009? Answer $2,000. $7,100. $9,200. $12,000. 0.5 points Question 3 Question 3 1. Sadler had the following account balances at year end: Sales $425,000 Sales returns and allowance 14,000 Accounts receivable 43,000 Allowance for doubtful accounts 760 If the estimates of uncollectibles is made by taking 2% of net sales, the amount of bad debt expense is? Answer $6,700. $8,220. $8,500. $9,740. 0.5 points Question 4 Question 4 1. On January 1, 2009, Anthony exchanged equipment for a $160,000 noninterest-bearning note due on January 1, 2012. The prevailing rate of interest for a note of this type at January 1, 2009 was 10%. What amount of interest revenue should be included in Anthony's 2010 income statement. Answer 0. $12,000. $13,200. $16,000. 0.5 points Question 5 Question 5 1. Rooster Corporation had a January 1, 2009 blance in the Allowance for Doubtful Accounts of $12,000. During 2009, it wrote off $8,640 of accounts and collected $2,520 on accounts previously written off. The blance inAccounts Receivable was $240,000 at January 1 and $288,000 at December 31. At December, 31, 2009, Rooster estimates that 5% of accounts receivable will prove to be uncollectible. What should Rooster report as its Allowance for Doubtful Accounts at December 31, 2009? Rooster report as its Allowance for Doubtful Accounts at December 31, 2009?...
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This note was uploaded on 12/25/2009 for the course ACC 5100 taught by Professor Andrews during the Fall '09 term at Wayne State University.

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quiz6 - Question 1 Question 1 1. Peterson Company has the...

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