Quiz789WordNight

Quiz789WordNight - Accounting 350 Fall 2009 Quiz Chpts 7,8...

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Accounting 350, Fall 2009 1. Kaniper 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 Kaniper should report cash and cash equivalents of A) $20,000. B) $20,300. C) $25,800. D) $27,200. Page 1
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2. Steinert Company has the following items at year-end: Cash in bank $30,000 Petty cash 500 Short-term paper with maturity of 2 months 8,200 Postdated checks 2,100 Steinert should report cash and cash equivalents of A) $30,000. B) $30,500. C) $38,700. D) $40,800. 3. Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? A) $ 532,000. B) $ 520,000. C) $1,920,000. D) $ 508,000. 4. During the year, Kiner Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $50,000 and the balance in the allowance account was $4,500. The net realizable value of accounts receivable after the write-off entry was A) $50,000. Page 2
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B) $49,500. C) $41,500. D) $45,500. 5. McGlone Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $15,000. During 2010, it wrote off $10,800 of accounts and collected $3,150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. At 12/31/10, McGlone estimates that 5% of accounts receivable will prove to be uncollectible. What should McGlone report as its Allowance for Doubtful Accounts at 12/31/10? A) $7,200. B) $7,350. C) $10,350. D) $18,000. 6. Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch Inc. will pay $850,000 in one year. Royal Palm Corp. normally sells this type of equipment for 90% of list price. How much should be recorded as revenue? A)
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This note was uploaded on 11/04/2010 for the course ACG 3103 taught by Professor Rue,j during the Spring '10 term at FGCU.

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Quiz789WordNight - Accounting 350 Fall 2009 Quiz Chpts 7,8...

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