12 question ACCT220 quiz

Question 1

Given below are account balances for Charlie Company:

Gross sales, $108,000

Sales returns and allowances, $6,000

Selling expenses, $12,000

Cost of goods sold, $54,000

Interest expense, $3,000

How much is the gross profit margin? (enter your percentage as a decimal rounded to two decimal places. Example - enter 46% as .46)

Your Answer:

2. Question 2

merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000.  If payment occurs on January 21, the journal entry would include a credit to?

	Sales Discounts for $40
	Cash for $1,960
	Accounts Receivable for $1,960
	Accounts Receivable for $2,000

Your answer:

Question 3

Merchandise was returned to a supplier.  The goods were previously purchased on account.  The goods had not been paid for and there were no discounts.  Assuming a periodic system, what journal entry is needed by the purchaser to record the return?

	Debit Accounts Payable, and Credit Purchases.
	Debit Accounts Payable, and Credit Inventory.
	Debit Accounts Payable, and Credit Purchase Returns and Allowances.
	Debit Accounts Payable, and Credit Purchase Discounts.

Your answer.

Question 4

 Apha Company provided the following data concerning its income statement: sales, $940,000; purchases, $461,000; beginning inventory, $270,000; ending inventory, $237,000; operating expenses, $108,000; freight-in, $5,000; sales discounts, $17,000; purchases discounts, $15,000; sales returns & allowances, $92,000; and purchases returns & allowances, $44,000.  The data are complete and provide the basis for preparation of an income statement.  How much is net income?

Question 5

 pha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.> Alpha Company sold on account $2,500 of merchandise to Bravo Company on May 2, 2016. Selling price was $4,000. Freight charges related to this transaction of $150 were paid by Alpha Company.

> Bravo Company returned, to Alpha Company, $250 of this merchandise on May 3,2016. Merchandise was sold for $400.

Use this information to prepare Alpha Company's  General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."

General Journal:

Date	Accounts	Debit	Credit
May 2
May 3

Question 6

 

Alpha Company replenished a $500 petty cash fund.  The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180.  The journal entry to reflect replenishment would include a:

	debit to Cash Short for $2
	credit to Cash or $180
	credit to Petty Cash for $2
	credit to Cash for $318 Question 7 Annapolis Company's bank statement indicated an ending cash balance of $9,040. Alpha's accountant discovered that outstanding checks amounted to $965 and deposits in transit were $640. Additionally, the bank statement showed service charges of $25. What is the correct adjusted ending cash balance Answer Question 8 (8 points) Baltimore Company uses aging to estimate uncollectibles.  At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value	Age of Account	Estimated Collectible
$175,000	< 30 days old	98%
70,000	30 to 60 days old	90%
40,000	61 to 120 days old	75%
10,000	> 120 days old	16%

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts?  Round to nearest whole dollar.

Answer

Question 9 (9 points)

Dorchester Company had the following balances at the end of 2018 and 2019 respectively:

Net Credit Sales - $880,000 for 2018 and $1,052,000 for 2019.

Accounts Receivable - $88,000 for 2018 and $115,000 for 2019.

Allowance for Doubtful Accounts - $6,000 for 2018 and 6,500 for 2019

Calculate the accounts receivable turnover ratio to one decimal place.

Your Answer:

Question 10 (9 points)

Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date	Activity	Quantity	Unit Price
5/1	Beginning Inventory	130	$10
5/5	Purchase	170	$12
5/15	Purchase	340	$14
5/25	Purchase	310	$16

Sales were 480 units at $20.  Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Your Answer:

Question 12 (8 points)

Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 11.5. What was the company's Days Outstanding in Inventory. Assume a 365 day year. Round to one decimal place.

Your Answer:

6