Following is selected informasion Gia millons for Peter Compury, AFTER year-nd a
ID: 2514319 • Letter: F
Question
Following is selected informasion Gia millons for Peter Compury, AFTER year-nd adjyosting entries Net sales (85%ee acoount) Bad debt espense 2012 2011 $ 49,000 $40,000 1,400 1,200 Gross Accounts Receivable Allowance for Doubeful Accounts S 8,800 $5,000 550 340 25. Peter Company financial statement information shows that a Net realizable value of receivables on December 31, 2012 is $8,250 million. b. Gross receivales on December 31, 2012 are 59 350 malln c Accounts of $1,400 million were written offas uncollectible in 2012 d. Total sales on acoount for 2012 amounted to $49,000 maillien e None of the above 26. On the basis of the infomation provided for Peter Compan y, the Acoounts Receivable written off in 2012 were a $1,190 b. $1.200 e $1,400 d $890 e None of the above 27, Mark Cepany received a 60-day, 15% note for $9,000 on June 16 wnich of the following statements is true? The principal ef the note plus intereat is due on August 1s b. The maturity value of this note is $9,000 c. Mark will receive $9,000 plus interest of $1,350 at maturity d. Mark shouild reoord a total note receivable due of $9,225 on June 16 e. None of the above 28. On October 20, 2012, Su Corporation sold merchandise in 1eturn for a 12%. 90-day note receivable in the amount or soooo. The proper adjusting entry at December 31,2012 (end of Su's fiscall year) includes a a. Crodit to Interest Reccivable of $2.,400 b. Credit to Notes Reccivale of $1,200 e. Credit to Interest Revenue of $2,400 d. Debit to Notes Receivable of $2,400 e None of the above The amount of Lito Reserve" would show up on the financial statements as a A contra-purchases account on the income statement b. 29. A footsote to the financial statements A contra asset account on the balance sheet. e. d. A contra-revene account on the income statement e An owners' equity account on the balance sheet 30 All of the following accounts normally have debit balances except a. Dividends b. Transportation-in c Accumulated Deprociation d. Purchases e Sales returns & allowances 31. At the start of the current year, Javier Company had a crodit balanoe in the Allowance for Doubtful Accounts of $6,000. During the year an siustr t of 2% of sales was made fr estimated collectible Bo nts. Sales r the year were S2 000,000 and S30 00 of accounts receivable were witten off s worthless Recoveries of accounts peeviously writen off of $1,000 were made during the year. The year-end financial statements should show a. Bad Debts expense of $34,000 b. Bad Debts expense of $46,000 c. Allowance for Doubtful Accounts with a crodit balance of $17,000 d. Allowance for Doubtful Accounts with a credit balance of S10,000 e None of the aboveExplanation / Answer
Q25. Answer is A. Net realisable value of Accounts recievable is $8250 on Dec31 Q26. Answer is a. $1190 Explanation: + Beginning balanc eof Allowance 340 Add: Bad debts expense 1400 Less: Ending balance of AR 550 Amount written off 1190 Q27. Answer is A. The notes receivable due on Aug 15. Q28. Answer is C. Credit Interest revenue $ 2400 Explanation: Note amount 100,000 Number of days outstanding 72 days Interest revenue 2400 Q29. Answer is C. Contra asset account in balance sheet Q30. Answer is c. Accumulated Depreciation Q31. Answer is c. Allowance for doubtful debts is having Credit balance of $17000 Explanation: Beginning balance of Allowance 6000 Add: bad debts expense (2000,000*2%) 40000 Less: Write off 30000 Add: Reinstated 1000 Ending balance 17000