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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.
- Fall '08