Reference no: EM132595294
Question 1: The following information applies to Destafano Company for the year 20x3: ( )
Sales on account $800,000
Average accounts receivable $100,000
Determine the days receivable outstanding:
a. 54.36 days
b. 365 days
c. 8 days
d. 45.63 days
During 20x1, Rogerio Corporation experienced the following:
• credit sales: $2,000,000
• collections on credit sales: $1,500,000
• write-offs of accounts deemed uncollectible: $20,000
• an aging analysis of accounts deemed uncollectible at 12/31/2x1 shows $40,000
of potentially uncollectible accounts
Note:The balance of "allowance for doubtful accounts" on 1/1/20x1: $23,000
Question 2: The journal entries for the write-offs during 20x1 is: ( )
a. Accounts receivable 20,000
Allowance for doubtful accounts 20,000
b. Bad debt expense 20,000
Accounts receivable 20,000
c. Allowance for doubtful accounts 20,000
Accounts receivable 20,000
d. Bad debt expense 20,000
Allowance for doubtful accounts 20,000
Question 3: How much bad debt expense will be reported in Rogerio's 20x1 income statement? ( )
a. $37,000
b. $38,000
c. $40,000
d. $43,000
Question 4: What is the net realizable value of Rogerio's accounts receivable at 12/31/20x1? ( )
a. $480,000
b. $460,000
c. $443,000
d. $440,000
Question 5: In the perpetual inventory system a physical count of inventory will still be taken at the end of each period: ( )
a. to determine the economic value of the ending inventory
b. to determine the cost of purchases during the period
c. to determine the amount of inventory shrinkage from evaporation (as in case of gasoline), damage, theft, etc.
d. to determine the cost of goods sold
Question 1: If inventory prices are falling, the LCM rule pushes the market-to-book ratio (= the market value divided by the book value of inventory): ( )
a. to zero
b. towards one
c. away from one
d. none of the above
Question 1: The following information pertains to the Moreau Corporation for 20x2: ( )
Net income: $345,000
Cost of goods sold: $143,000
January 1, 20x2 inventory: $75,000
December 31, 20x2 inventory: $85,000
Based upon the above information, determine the inventory turnover.
a. 1.79 times
b. 0.56 times
c. 17.9 times
d. 5.6 times