Exam (elaborations)
ch 8 accounting final exam (1)
- Course
- Biochemistry Module 3
- Institution
- Biochemistry Module 3
ch 8 accounting final exam (1)
[Show more]
Seller
Follow
Content preview
ch 8 accounting final examnet account recievable - CORRECT ANSWER-gross AR - (allowances + discounts) -
bad debts
percentage of credit sales method - CORRECT ANSWER-bases bad debt expense
on the historical percentage of credit sales that result in bad debts
aging method - CORRECT ANSWER-Basing the estimate of future bad debts on the
various ages of individual accounts receivable, using a higher percentage for "old"
accounts than for "new" accounts
bad debt expense - CORRECT ANSWER-difference between ending balance of
allowance for bad debt and credit balance of allowance for bad debt
Interest Formula - CORRECT ANSWER-principal x rate x time
aging of receivables method - CORRECT ANSWER-A method of estimating
uncollectible receivables by determining the balance of the Allowance for Bad Debts
account based on the age of individual accounts receivable.
receivable turnover ratio - CORRECT ANSWER-Net Credit Sales/Average Net
Receivables
days to collect - CORRECT ANSWER-365/receivables turnover ratio
The amount of uncollectible accounts at the end of the year is estimated to be
$30,000, using the aging of accounts receivable method. The balance in the
Allowance of Doubtful Accounts account is an $10,000 credit before adjustment.
What is the adjusted balance of the Allowance for Doubtful Accounts at the end of
the year? - CORRECT ANSWER-30,000
The Perry Company reported Accounts Receivable, Net of $64,600 at the beginning
of the year and $73,600 at the end of the year. If the company's net sales revenue
during the fourth year was $896,000, what are the days to collect during
year?(Round all calculations to 1 decimal place.) - CORRECT ANSWER-28.1
The balance in the allowance for doubtful account is = to estimate of uncollectables
using aging method. - CORRECT ANSWER-true
Morrow Incorporated uses the percentage of credit sales method of estimating
doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit
balance of $5,700 and the company had $290,000 of net credit sales during the
period. Morrow has experienced bad debt losses of 6% of credit sales in prior
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 scholartutor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.83. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now