CH 5 quiz

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CH 5 quiz

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AKSHAY DEVA REDDY

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CH 5 quizVersión en línea CH 5 quiz por AKSHAY DEVA REDDY 1 Which of the following is true? a Credit Sales increase receivables b Collections on account decrease receivables c Write-offs decrease receivables d All of the above 2 A doctor performs a physical on Oct 1st, bills the patient on Oct 4th, received the payment on the 15th, and records adjusting entries on the 31st. When will revenue be recognized? a Oct 1 b OCT 4 c OCT 5 d OCT 31 3 Birchwood Corporation began 2018 with a balance in Accounts Receivable of $ 600,000. Service revenue, all on account, for the year totaled $ 1,600,000. The company ended the year with a balance in Accounts Receivable of $ 775,000. Birchwood's bad-debt write-offs are nonexistent. How much cash did the company collect from customers in 2018? a $ 2,375,000 b $ 1,600,000 c $ 1,425,000 d $ 1,775,000 4 Linus Company uses the percent-of-sales method to estimate uncollectible. Net credit sales for the current year amount to $ 110,000, and management estimates 4% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 3,000. The amount of expense to report on the income statement will be a $ 6,600. b $ 6,600. c $ 4,400 d $ 1,500 5 Winter Park Legal Association performs legal services for Rowland Construction for $ 1,000 on account with credit terms of 1/10, n/30. If Rowland pays the invoice within the discount period, Winter Park will record a debit to Cash in the amount of: a $990 b $1000 c $10 d $1010

CH 5 quizVersión en línea

CH 5 quiz

por AKSHAY DEVA REDDY

Which of the following is true?

Credit Sales increase receivables

Collections on account decrease receivables

Write-offs decrease receivables

All of the above

A doctor performs a physical on Oct 1st, bills the patient on Oct 4th, received the payment on the 15th, and records adjusting entries on the 31st. When will revenue be recognized?

Oct 1

OCT 4

OCT 5

OCT 31

Birchwood Corporation began 2018 with a balance in Accounts Receivable of $ 600,000. Service revenue, all on account, for the year totaled $ 1,600,000. The company ended the year with a balance in Accounts Receivable of $ 775,000. Birchwood's bad-debt write-offs are nonexistent. How much cash did the company collect from customers in 2018?

$ 2,375,000

$ 1,600,000

$ 1,425,000

$ 1,775,000

Linus Company uses the percent-of-sales method to estimate uncollectible. Net credit sales for the current year amount to $ 110,000, and management estimates 4% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 3,000. The amount of expense to report on the income statement will be

$ 6,600.

$ 4,400

$ 1,500

Winter Park Legal Association performs legal services for Rowland Construction for $ 1,000 on account with credit terms of 1/10, n/30. If Rowland pays the invoice within the discount period, Winter Park will record a debit to Cash in the amount of:

$990

$1000

$10

$1010

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CH 5 quiz

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Creada por

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CH 5 quizVersión en línea

por AKSHAY DEVA REDDY

Which of the following is true?

A doctor performs a physical on Oct 1st, bills the patient on Oct 4th, received the payment on the 15th, and records adjusting entries on the 31st. When will revenue be recognized?

Winter Park Legal Association performs legal services for Rowland Construction for $ 1,000 on account with credit terms of 1/10, n/30. If Rowland pays the invoice within the discount period, Winter Park will record a debit to Cash in the amount of:

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