100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MGMT 200 Exam 2 || A+ GRADED SOLUTIONS. $12.49   Add to cart

Exam (elaborations)

MGMT 200 Exam 2 || A+ GRADED SOLUTIONS.

 9 views  0 purchase
  • Course
  • Mgmt
  • Institution
  • Mgmt

When a company provides services on account, which of the following accounts is debited? correct answers accounts receivable The amount of cash owed to the company by its customers from the sale of products or services on account is known as: correct answers accounts receivable A sales discou...

[Show more]

Preview 2 out of 12  pages

  • August 9, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Mgmt
  • Mgmt
avatar-seller
ProPerfomer
MGMT 200 Exam 2 || A+ GRADED SOLUTIONS.
When a company provides services on account, which of the following accounts is debited?
correct answers accounts receivable

The amount of cash owed to the company by its customers from the sale of products or
services on account is known as: correct answers accounts receivable

A sales discount is recorded by the seller as a(n): correct answers contra revenue

On January 18, a company provides services to a customer for $500 and offers the customer
terms 2/10, n/30. Which of the following would be recorded when the customer remits
payment on January 25? correct answers debit sales discount for $10

Which of the following refers to the seller reducing the customer's balance owed because of
some deficiency in the company's product or service? correct answers sales allowance

The entry to record the estimate for uncollectible accounts includes: correct answers a debit
to bad debt expense

Under the allowance method for uncollectible accounts, the balance of Allowance for
Uncollectible Accounts increases when: correct answers future bad debts are estimated

On December 31, the Accounts Receivable ending balance is $80,000. Assume that the
unadjusted balance of Allowance for Uncollectible Accounts is a debit of $500 and that the
company estimates 7% of the accounts receivable will not be collected. The amount of bad
debt expense recorded on December 31 will be: correct answers $6,100

On December 31, the Accounts Receivable ending balance is $80,000. Assume that the
unadjusted balance of Allowance for Uncollectible Accounts is a credit of $500 and that the
company estimates 7% of the accounts receivable will not be collected. The amount of bad
debt expense recorded on December 31 will be: correct answers $5,100

Schmidt Company's Accounts Receivable balance is $100,000, its adjusted balance in
Allowance for Uncollectible Accounts is $4,000, and its bad debt expense is $3,800. The net
realizable value of accounts receivable is: correct answers $96,000

If a company uses the allowance method of accounting for uncollectible accounts and writes
off a specific account: correct answers net accounts receivable do not change

If a company uses the allowance method of accounting for uncollectible accounts and collects
cash on an account receivable previously written off: correct answers there is no change in
total assets

Under the direct write-off method, uncollectible accounts are recorded: correct answers in the
period the account is determined actually collectible

A company provides services to a customer in the current year and then determines in the
following year that the customer's account needs to be classified as uncollectible. If the

, company uses the direct write-off method, which of the following would be recorded in the
following year at the time of the write-off? correct answers debit bad debt expense

On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest
are due on March 31, 20X2 (one year later). On March 31, 20X2, Nelson Inc. will record
interest revenue of: correct answers $2,000

On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest
are due on March 31, 20X2 (one year later). On December 31, 20X1, Nelsen will accrue
interest revenue of: correct answers $6,000

The receivables turnover ratio is a measure of: correct answers the number of times during a
year that the average accounts receivable balance is collected

what is the receivables turnover ratio? correct answers receivables turnover ratio = net
income/average accounts receivable

inventory correct answers things that firms will use to make a finished product for customers;
an asset on the balance sheet

true or false? Wholesalers resell inventory to end users. correct answers false

true or false? The cost of inventory sold during a period is reported on the income statement.
correct answers true

LIFO correct answers last in first out; last units purchased are the first ones solde

weighted average cost method correct answers an inventory costing method that assigns the
same unit cost to all units available for sale during the period-

cost of goods available for sale/number of units available for sale

When inventory costs are rising, the _____ results in a higher reported inventory. correct
answers FIFO method

Accountants often call FIFO the balance-sheet approach because _____. correct answers the
amount it reports for ending inventory better approximates the current cost of inventory

Which of the following is true of a period of falling inventory costs? correct answers LIFO
will report higher gross profit than FIFO.

Which of the following is an advantage of using LIFO in a period of rising costs? correct
answers results in lower taxes

The LIFO conformity rule requires that _____. correct answers a company that uses LIFO for
tax reporting to also use LIFO for financial reporting

Which of the following represents the balance of Cost of Goods Sold at the end of the year?
correct answers The cost of inventory not yet sold by the end of the year.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ProPerfomer. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79223 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart