Toy Company has 4% credit/debit card service fees deducted monthly by the bank from Toy Company s bank account. Toy Company has $75,000 in sales for the month. At what amount will Toy Company record this month s sales?
a. $78,000
b. $75,000
c. $72,000
d. $3,000
U. S. Treasury notes must mature within ____________ days of the balance sheet date in order to be considered cash equivalents.
a. 60
b. 90
c. 120
d. 180
A company has $235,000 in credit sales. The company uses the allowance method of determining uncollectible accounts expense. The allowance for doubtful accounts now has a $7,250 credit balance. If the company uses the allowance method based on 7% of credit sales, what will be the amount of the journal entry credited to allowance for uncollectible accounts?
a. $16,450
b. $23,700
c. $7,250
d. $9,200
The aging method is called the:
a. Balance sheet approach
b. Income statement approach
c. Allowance approach
d. Direct write-off approach
Using a 360-day year, the maturity value of a 90-day note for $3,500 at 8% annual interest is:
a. $3,780
b. $3,710
c. $3,570
d. $3,500
A 135-day note issued on May 17 will mature on:
a. September 28
b. September 29
c. September 30
d. October 1
Mike Company has cash of $56,000; net accounts receivable of $67,000; short-term investments of $12,000 and inventory of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term liabilities. The quick ratio for Mike Company is:
a. 2.33
b. 2.73
c. 3.00
d. 3.89
On April 23, Lauren paid $4,750 to Ryan Company to fulfill her promissory note agreement. Of the $4,750, $750 is interest. The journal entry Ryan Company will record is:
a. Debit cash, $4,750; credit note receivable/Lauren, $4,750
b. Debit cash, $4,750; credit note receivable/Lauren, $4,000; credit interest income $750
c. Debit note receivable/Lauren, $4,750; credit cash $4,700; credit interest income $750
d. Debit note receivable/Lauren, $4,750; credit cash $4,750.
A company with an accounts receivable turnover of 11.78 would be collecting its receivables about:
a. Once a week
b. Once a month
c. Once a quarter
d. Once a year
A company has a petty cash fund of $350. At the end of the month, $7.89 remains in the fund along with $340.56 in various receipts. The journal entry to replenish the fund would show a debit(s) to:
a. Various expenses for $340.56 and cash short of $1.55
b. Various expenses for $340.56 and cash over of $1.55.
c. Cash for $342.11.
d. Cash for $340.56.