11. ABC company uses the estimate of sales method of accounting for uncollectible
accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1,
2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 200
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Periodic Inventory by Three Methods; Cost of Merchandise Sold
The units of an item available for sale during the year were as follows:
90 units at $54
112 units at $55
100 units at $58
Jacob Co. sells merchandise on credit to Isaiah Co. in the amount of $9,700. The invoice is dated on
May 1 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the
invoice be paid in order for the buyer to take advantage
Business Ch. 6-9
Market- Consumers with unsatisfied wants & needs who have both
resources and willingness to buy
Advantage of small businesses is the ability to know the market & quickly
adapt to market needs.
Entrepreneurship- Accepting the risk of st
Final review study guide
Chapter 1 review: Things to know
70.8% of our Earth is covered by oceans
12 billion years ago- formation of the universe
5 billion years ago- solar nebula
4.5678 billion years ago- formation of Earth
4 billion years
Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders'
a. Accounts payable
c. Fees earned
f. Wages expense
2-1Using Accounts to Record
account: An accounting form that is used to record the increases and decreases in each financial
An account, in its simplest form, has three parts.
A title, which is the name of the accounting equat
1.1 Nature of business and accounting
Business: An organization in which basic resources (inputs), such as materials and labor, are
assembled and processed to provide goods or services (outputs) to customers.
Profit: The difference between the amounts rec