Toy Company has 4% credit/debit card service fees deducted monthly by the bank from Toy Company’s bank

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.