finalexam363-1-19-09 - I have attached below your Final...

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I have attached below your Final Exam. The test is due by midnight Monday, and should be submitted directly to the Assignments newsgroup. The test is an individual effort and should not be discussed with your classmates. Please submit the entire exam with your answers. Good Luck. Financial Accounting II ACC/363 Final Exam (58 points) 49 multiple choice - (1 point each) = 49 points. 3 problems (3 each) – 9 points. 1 Interest is usually associated with a. accounts receivable. b. notes receivable. c. doubtful accounts. d. bad debts. 2. A debit balance in the Allowance for Doubtful Accounts a. is the normal balance for that account. b. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. c. indicates that actual bad debt write-offs have been less than what was estimated. d. cannot occur if the percentage of sales method of estimating bad debts is used. 3. Two methods of accounting for uncollectible accounts are the 4. If an account is collected after having been previously written off, 5. The direct write-off method of accounting for bad debts
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6. Winter Furniture factors $400,000 of receivables to Fair Factors, Inc. Fair Factors assesses a 2% service charge on the amount of receivables sold. Winter Furniture factors its receivables regularly with Fair Factors. What journal entry does Winter make when factoring these receivables? a. Cash ................................................................................. 392,000 Loss on Sale of Receivables ........................................... 8,000 Accounts Receivable .............................................. 400,000 b. Cash ................................................................................. 392,000 Accounts Receivable .............................................. 392,000 c. Cash ................................................................................. 400,000 Accounts Receivable .............................................. 392,000 Gain on Sale of Receivables .................................. 8,000 d. Cash ................................................................................ 392,000 Service Charge Expense ............................................... 8,000 Accounts Receivable ............................................ 400,000 7. Hardy Clinic purchases land for $90,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Hardy Clinic record as the cost for the land?
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