140. summary of London Fashion's December 31, 2013, accounts receivable aging schedule is
presented below along with the estimated percent uncollectible for each age group:
The allowance for uncollectible accounts had a balance of $1,600 at January 1, 2
149.On June 30, 2013, Blondie Fixtures was considering alternatives to bolster its cash position.
Option One called for transferring $400,000 in accounts receivable to Dogwood Finance
Company without recourse for a 5% fee. Option Two calls for Blondie to
142. ordova, Inc., reported the following receivables in its December 31, 2012, year-end balance
1. The notes receivable account consists of two notes, a $100,000 note and a $300,000 note. The
141.On December 31, 2012, Central Freight reported an allowance for uncollectible accounts of
$15,300. During 2013, Central wrote off $17,000 in accounts receivable. Included in the write-off
was Roskoff Corp.'s account in the amount of $750. Roskoff subs
118.On July 18, 2013, Philly Furniture Factory sold 20 reclining rockers to Dave's Discount Furniture
for $8,000, subject to terms 2/10, n30. Philly uses the net method of accounting for sales
1. Prepare the journal entry to record th
150. he Fitzgerald Company maintains a checking account at the Bank of the North. The bank
provides a bank statement along with canceled checks on the last day of each month. The
October 31, 2013, bank statement included the following information:
109.Rebound Inc. reports under IFRS. In 2013 Rebound recognized an impairment of $200,000 due to
a troubled debt restructuring. In 2014 Rebound was pleased to determine that more cash flows
would be received from the receivable than was previously thought
112.Listed below are five terms followed by a list of phrases that describe or characterize each of the
terms. Match each phrase with the correct term by placing the letter designating the best term in
the space provided by the phrase.
114.Listed below are 10 terms followed by a list of phrases that describe or characterize the terms.
Match each phrase with the correct term.
Bad debt expense is recorded when
1. Sales returns
receivables are written off. _
Reduces the amount paid by a c
110.Listed below are five terms followed by a list of phrases that describe or characterize each of the
terms. Match each phrase with the correct term.
Has no effect on net receivables when
1. Sales returns
using the allowance method. _
2. Write-off of a
115.Listed below are five terms followed by a list of phrases that describe or characterize each of the
terms with respect to accounting under IFRS. Match each phrase with the correct term.
This accounting approach can be used for
116. osta Co. has the following cash balances at local banks as of 12/31/2013:
1. Prepare the Current Assets and Current Liabilities section of Costa's 2013 balance sheet,
assuming Parker reports under U.S. GAAP.
2. Prepare the Current Assets
120.On October 18, 2013, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for
$3,400, subject to terms 2/10, n30. Flying Chicken uses the gross method of accounting for sales
1. Prepare the journal entry to record the
121.On June 14, 2013, Rumsfeld Company sold 100 air-conditioning units to Powell Heating and
Cooling. The units list for $600 each, but Powell was granted a 25% trade discount. All of
Rumfeld's sales are subject to terms 2/10, n30. Rumsfeld uses the gross
117.On May 12, 2013, Falwell Computing sold five computers to Computing Plus for $10,000, subject
to terms 3/10, n30. Falwell uses the net method of accounting for sales discounts.
1. Prepare the journal entry to record the sale.
2. Prepare the
122.On February 14, 2013, Prime Company sold 50 air-conditioning units to L&P Heating and Cooling.
The units list for $700 each, but L&P was granted a 30% trade discount. All of Prime's sales are
subject to terms 2/10, n30. Prime uses the net method of ac
107.Brewer Inc. is owed $200,000 by Carol Co. under a 10% note with two years remaining to
maturity. Due to financial difficulties Carol Co. did not pay the prior year's interest. Brewer agrees
to settle the receivable (and accrued interest) in exchange f
105.Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of
July, the balance in the general ledger checking account was $2,750 and the bank balance on the
bank statement was $2,980. Outstanding checks totaled $680
Direct Materials & Labor
Budget Variance Formulas:
Standard Quantity of Materials or Labor = Materials or Hours Per Unit x Actual Output
Standard Cost Per Unit = Estimated Cost Estimated Quantity Allocation Base
Standard Cost = S
CAPITAL INVESTMENT ANALYSIS METHODS
Methods that do not consider the time value of money:
With equal annual cash inflows, Payback period = Amt Invested / Annual cash inflow
With unequal cash inflows, make an inflow schedule showing the amo
Running head: ETHICAL CONSIDERATIONS
Could you submit a report to your boss that would cost you not only your job but the jobs of those
around you? Some might say its a hard choice but its ultimately easy when you review the ethic
Running head: ACCOUNTING INFORMATION SYSTEMS
Accounting Information Systems
Accounting information systems are responsible for processing accounting data and
producing managed output. These systems are becoming more adaptable to specific businesses as
Differences between financial and managerial accounting
Differences between types of companies: service, merchandising, manufacturing
The multi-step Income Statement
Product vs. Period Costs
Direct materials, direct labor,
91. In deciding whether financing with receivables is a secured borrowing or a sale under IFRS, the
critical element is the extent to which:
A. The transferee has received substantially all the risks and rewards of ownership.
B. The age of the receivables
94. On April 1 of the current year, Troubled Company factored receivables with a carrying value of
$85,000 for $60,000 in cash from Scrooge Lenders. The transfer was made without recourse. On
April 1, Troubled would:
A. Credit deferred interest expense fo
97. Which of the following is not true regarding accounting for transfers of receivables under IFRS?
A. ransfers of receivables sometimes are treated as a sale of receivables.
B. ransfers of receivables sometimes are treated as a secured borrowing.
100. uckabee's 2013 average collection period (rounded) is:
A. 69 days.
B. 116 days.
C. 111 days.
D. 73 days.
101. lliance Software began 2013 with accounts receivable of $115,000. All sales are made on credit.
Sales and cash collections from customer
102.The journal entry to establish the petty cash fund includes:
A. A credit to petty cash and a debit to cash for $150.
B. A debit to petty cash and a credit to cash for $150.
C. A credit to cash and a debit to various expenses for $126.
D. A credit to p
119.On March 12, 2013, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for $10,000,
subject to terms 2/10, n30. Admiral uses the gross method of accounting for sales discounts.
1. Prepare the journal entry to record the sale.