Question 4 question text jay inc estimates

This preview shows page 30 - 33 out of 55 pages.

Question 4 Question text Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $243,000, and the Allowance for Doubtful Accounts has a credit balance of $4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be: Select one: a. $4,205 (243,000*3.5%)-4,300=4,205 b. $8,505 c. $5,423 d. $4,300 Feedback Your answer is correct. The correct answer is: $4,205
Question 5 Question text ABC Inc. was incorporated two years ago by issuing 1,000 shares of common stock at $200 and borrowing $30,000 from a bank on a long-term note. Last year, ABC reported net income of $10,000 and paid a cash dividend of $800. During the year, the company also borrowed an additional $7,600 from the bank. What was total assets on ABC's balance sheet at the end of the year last year? Select one:
Question 6 Question text In which order are current assets listed on the balance sheet? Select one:
Question 7 Question text At the beginning of the year, Company ABC reported total liabilities of $185,300. At the end of the year, the company reported total liabilities of $220,400. Total assets at the end of the year were $43,000 larger than at the beginning of the year. Assuming that the company declared and paid a $3,100 dividend during the year, what was net income (loss) for the year?
a. $11,000 Liabilities increased $35,100. Assets increased $43,000. The only way that is possible is if equity increased $7,900. That means Retained Earnings was $7,900. Retained Earnings plus Dividends equal Net Income. $7,900+$3,100=$11,000. b. $7,900 c. $12,300 d. $177,400 Feedback Your answer is correct. The correct answer is: $11,000 Question 8 Question text Based on the information below and considering that this company paid $322,500 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015? 1/1/20 15 12/31/2 015 Inventory $23,40 0 $34,560 Accounts payable $354,0 00 $223,00 0 Select one: a. $180,340 b. $311,340 c. $322,500 d. $442,340 Feedback Your answer is incorrect. The correct answer is: $180,340

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture