After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of$51,000. What is the net realizable value of the accounts receivable?

a. $51,000
b.$289,000
c. $340,000
d.$391,000

When using a perpetual inventory system, the journal entry to record the cost of goods sold is:

a. debit Cost of Goods Sold; credit Sales

b. debit Cost of Goods Sold; credit Inventory

c. debit Inventory; credit Cost of Goods Sold

d. No journal entry is made to record the cost of goods sold.

The Boeing Company is one of the world’s major aerospace firms with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management systems. As of a recent year, Boeing had $4,281 million of receivables involving U.S. government contracts and$1,749 million of receivables involving commercial aircraft customers, such as Delta Airlines and United Airlines .

Should Boeing report these receivables separately in the financial statements or combine them into one overall accounts receivable amount? Explain

What is the type of account and normal balance of Allowance for Doubtful Accounts?

A. Contra asset, credit

B. Asset, debit Asset, credit

C. Contra asset, debit

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown previously.

$$\begin{array}{lccc} \text { Item } & \begin{array}{c} \text { Inventory } \\ \text { Quantity } \end{array} & \begin{array}{c} \text { Cost per } \\ \text { Unit } \end{array} & \begin{array}{c} \text { Market Value per Unit } \\ \text { (Net Realizable Value) } \end{array} \\ \hline \text { Raven } 10 & 1,200 & \$ 115 & \$ 112 \\ \text { Dove } 23 & 6,500 & 17 & 22 \end{array}$$

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

a. Uncollectible Accounts Expense
b. Allowance for Doubtful Accounts
c. Accounts Receivable
d. Interest Expense

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 10.

$$\begin{array}{lccc} \textbf { Item } & \begin{array}{c} \textbf { Inventory } \\ \textbf { Quantity } \end{array} & \begin{array}{c} \textbf { Cost per } \\ \textbf { Unit } \end{array} & \begin{array}{c} \textbf { Market Value per Unit } \\ \textbf { (Net Realizable Value) } \end{array} \\ \hline \text { Raven 10 } & 1,200 & \$ 115 & \$ 112 \\ \text { Dove 23 } & 6,500 & 17 & 22 \end{array}$$

In credit terms of 3/15, n/45, the "3" represents the:

a. number of days in the discount period.
b. full amount of the invoice.
c. number of days when the entire amount is due.
d. percent of the cash discount.

Which of the following entries records the receipt of cash for two months' rent?

The cash was received in advance of providing the service.

A. Cash, debit; Rent Expense credit.

B. Cash, debit; Unearned Rent, credit.

C. Prepaid Rent, debit; Rent Revenue, credit.

D. Cash, debit; Prepaid Rent, credit

A chart of accounts for a merchandising business

A.) usually is the same as the chart of accounts for a service business

B.) usually is standardized by the FASB for all merchandising businesses

C.) usually requires more accounts than does the chart of accounts for a service business

D.) always uses a three-digit numbering system

The adjusting entry for the depreciation of a plant asset such as equipment involves a credit to a. equipment expense. b. accumulated equipment. c. depreciation expense. d. accumulated depreciation.

Prepare a journal entry for the purchase of office equipment on February 19 for $18,500 paying$4,500 cash and the remainder on account.

Smiles Entertainment had the following accounts and balances at December 31:

Cash $11,600

Accounts Receivable 2,320

Prepaid Insurance 3,040

Supplies 1,320

Accounts Payable$5,800

Common Stock 5,860

Service Revenue 8,600

Salaries Expense 660

Utilities Expense 1,320

Using the information in the table, calculate the company's reported net income for the period.

Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)

1. Bank service charges, $\$ 30$.
2. Check of a customer returned by bank to company because of insufficient funds, $\$ 400$.
3. Check for $\$ 320$ incorrectly recorded by the company as $\$ 230$.
4. Check for $\$ 1,100$ incorrectly charged by bank as $\$ 110$.
5. Deposit in transit, $\$ 3,300$.
6. Outstanding checks, $\$ 7,950$.
7. Note collected by bank, $\$ 10,500$.