KIC000088 - Bad Debt Expense + 1,350 Allowance for Doubtful...

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-~ Quiz 4 - 15 points take home Chapters 7 and 8 Accounting 284 Spring 2009 - Clem Name: U\)~bY\ \-\olm Class Time(circle): 11 am 0240~ Row Multiple Choice Questions. letters. (3 pts each) ~6 Write correct answer in space provided using capital I. Jordan Electronics had credit sales during the year totaling $5,000,000 and an ending accounts receivable balance of $45,000. Assuming Jordan has a historical bad debt loss rate of 3%, what entry will Jordan need to make at the end of the year to record bad debt expense? (A) Bad Debt Expense + 150,000 Allowance for Doubtful Accounts +$150,000 Bad Debt Expense + 150,000 Allowance for Doubtful Accounts -$150,000 Bad Debt Expense +1,350 Allowance for Doubtful Accounts +$1,350
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Unformatted text preview: Bad Debt Expense + 1,350 Allowance for Doubtful Accounts-$1,350 (B) .c-> (D) .:5:J. Which of the following statements is correct regarding the effect of writing off an uncollectible account? (A) Net income is unchanged (8) Total assets are unchanged ~ Net income is reduced o Both A and B are correct 3. Toys "R" Us had cost of goods sold in 2004 of $7,506 million and $7,646 million in 2003. Their merchandise inventory in 2004 was $1,884 million and $2,094 million in 2003. What was their inventory turnover in 2004? (Inventory ~ urnover Ratio = COGS I Average Inventory) ~3.77 ' 3.89 150lp C) 3.97 I \/ D) 4.15 ~ 1~4+2oq4J !...
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This note was uploaded on 09/01/2011 for the course ACCT 284 taught by Professor Clem during the Fall '08 term at Iowa State.

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