Reference no: EM133063684
Question 1 - On December 31, 2020, James Company has an accounts receivable balance of $124,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $800 credit balance. The company prepares the following aging schedule for accounts receivable:
Total Balance 1-30 days 31-60 days 61-90 days over 90 days
$124,000 $75,000 $25,000 $18,000 $6,000
Percent uncollectible 1% 1.5% 3% 10%
What is the Bad Debt Expense at December 31, 2020?
a. $1,865
b. $1,465
c. $2,565
d. $2,265
Question 2 - On August 1, 2021 Mickey Corporation accepted a $25,000, 6 month , 6% note receivable in granting a time extension to Minnie Corporation on their past due accounts receivable.
Mickey Corporation has a September 30 year end. The amount of interest to accrue at September 30, 2021 is:
a. $500
b. $750
c. $1,500
d. $250
Question 3 - Priyanka Inc. sold $11,200 worth of merchandise on June 1, 2015 on credit. After inspecting the inventory, the customer determined that 10% of the items were defective and returned them to Priyanka. The terms given to the customer were 2/15 n30. If Priyanka receives payment of the invoice on June 15, what is the amount Priyanka is paid on June 15?
a. $9,979
b. $10,976
c. $11,088
d. $9,878
Question 4 - A physical count of inventory is necessary for a
a. Neither a perpetual nor a periodic inventory system
b. Periodic inventory system
c. Both a perpetual and a periodic inventory system
d. Perpetual inventory system
Question 5 - A physical count of inventory is necessary for a
a. Neither a perpetual nor a periodic inventory system
b. Periodic inventory system
c. Both a perpetual and a periodic inventory system
d. Perpetual inventory system