Intermediate I Gleim Review Test 1
Zed Co. recorded a sale on May 1 for $6,000 and sales on
May 9 and 10 for $9,000
and $12,000, respectively. Zed’s credit terms are 2/10, n/30. The payment on the $6,000
sale was received May 10. The $12,000 sale was paid for on May 15, and the $9,000
sale was paid for on May 29. Under the gross method and the net method, net sales
should appear at which of the following amounts on the May income statement?
After being held for 30 days, a 90-day, 15% interest-bearing note
discounted at a bank at 18%. The proceeds received from the bank upon discounting
A. Maturity amount minus the discount at 18%.
B. Face amount plus the discount at 18%.
C. Maturity amount plus the discount at 18%.
D. Face amount minus the discount at 18%.
Birch Construction credit sales have the following historical pattern:
70% collected in month of sale
15% collected in the first month after sale
10% collected in the second month after sale
4% collected in the third month after sale
The sales on open account have been budgeted for the first 6 months of the current year
as shown below.
The estimated total cash collections during the second calendar quarter from sales
made on open account during the second calendar quarter equal