ACCT 304 Week 5 Discussions,Homework & Quiz Intermediate Accounting I

ACCT 304 Week 5 Discussions,Homework & Quiz Intermediate Accounting I

Week 5

ACCT 304 Week 5 DQ 1 Cash:

Cash is listed first on the balance sheet because it is the asset most readily available to pay off debt or use in operations. Cash is also one of the assets that most often “grows legs” and walks away. Therefore, it is important that any business protect its cash; it does so through Internal Control Procedures. Please start by defining Internal Control, then discuss specific procedures related to cash.

ACCT 304 Week 5 DQ 2 Receivables:

When a business extends credit to its customers, we call this Accounts Receivable. Often a business will grant its customers a discount. What are the two types of discounts, and how does the journal entry to record the sale change when there is a discount granted?

ACCT 304 Week 5 Homework Assignments:

Exercise 7-1, 7-5, 7-8, 7-28, 7-29

ACCT 304 Week 5 Quiz :

1. (TCO 7) Cash may not include
2. (TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10?
3. (TCO 7) Which of the following does not change the balance in accounts receivable?
4. (TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is
5. (TCO 7) At January 1, 2011, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Farley’s credit sales have been uncollectible. During 2011, Farley wrote off $650,000 to accounts receivable. Credit sales for 2011 were $18,000,000. In its December 31, 2011 balance sheet, what amount should Farley report as allowance for uncollectible accounts?