A company receives a 10%, 90-day note for $3,900. The total interest due on the maturity date is

A company receives a 10%, 90-day note for $3,900. The total interest due on the maturity date is: (Use 360 days a year.)

$97.50.

$195.00.

$130.00.

$227.50.

$390.00.

$3,900 × 0.10 × 90/360 = $97.50

On February 1, a customer's account balance of $2,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

On February 1, a customer's account balance of $2,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Debit Bad Debts Expense $2,600; credit Allowance for Doubtful Accounts $2,600.

Debit Accounts Receivable $2,600; credit Allowance for Doubtful Accounts $2,600.

Debit Allowance for Doubtful Accounts $2,600; credit Bad Debts Expense $2,600.

Debit Bad Debts Expense $2,600; credit Accounts Receivable $2,600.

Debit Allowance for Doubtful Accounts $2,600; credit Accounts Receivable $2,600.

Answer

Debit Allowance for Doubtful Accounts $2,600; credit Accounts Receivable $2,600.

On November 1, Orpheum Company accepted a $12,200, 90-day, 30% note from a customer to settle an account. What entry should be made on the November 1 to record the note acceptance?

On November 1, Orpheum Company accepted a $12,200, 90-day, 30% note from a customer to settle an account. What entry should be made on the November 1 to record the note acceptance?

Debit Cash $12,200; credit Sales $12,200.

Debit Note Receivable $12,200; credit Cash $12,200.

Debit Sales $12,200; credit Accounts Receivable $12,200.

Debit Note Receivable $12,200; credit Sales $12,200.

Debit Note Receivable $12,200; credit Accounts Receivable $12,200.

Answer
Debit Note Receivable $12,200; credit Accounts Receivable $12,200.

At the end of the day, the cash register tape shows $1,340 in cash sales but the count of cash in the register is $1,435. The proper entry to account for this excess is:

At the end of the day, the cash register tape shows $1,340 in cash sales but the count of cash in the register is $1,435. The proper entry to account for this excess is:

Debit Cash Over and Short $95; credit Cash $95.

Debit Cash $1,435; credit Sales $1,435.

Debit Cash $1,340; credit Sales $1,340.

Debit Cash $1,435; credit Sales $1,340; credit Cash Over and Short $95.

Debit Cash $1,340; debit Cash Over and Short for $95; credit Sales $1,435. Answer Debit Cash $1,435; credit Sales $1,340; credit Cash Over and Short $95.

Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $161 for merchandise inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the reimbursement of the fund on September 30 includes a

Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $161 for merchandise inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the reimbursement of the fund on September 30 includes a:

Credit to Cash for $90.

Credit to Merchandise Inventory for $161.

Debit Petty Cash for $280.

Debit to Office Supplies for $85.

Credit to Cash for $370.

Answer
Debit to Office Supplies for $85.

Ferguson Co. has a $260 petty cash fund. At the end of the first month the accumulated receipts represent $49 for delivery expenses, $151 for merchandise inventory, and $18 for miscellaneous expenses. The fund has a balance of $42. The journal entry to record the reimbursement of the account includes a:

Ferguson Co. has a $260 petty cash fund. At the end of the first month the accumulated receipts represent $49 for delivery expenses, $151 for merchandise inventory, and $18 for miscellaneous expenses. The fund has a balance of $42. The journal entry to record the reimbursement of the account includes a:

Credit to Inventory for $151.

Debit to Cash Over and Short for $42.

Debit to Petty Cash for $260.

Credit to Cash for $218.

Credit to Cash Over and Short for $42.

Answer
Credit to Cash for $218.

A company’s inventory records report the following:

A company’s inventory records report the following:

August 1	Beginning balance	30 units @ $20
August 5	Purchase	25 units @ $19
August 12	Purchase	29 units @ $20

On August 15, it sold 60 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

$500

$2,016

$1,200

$480

$1,320

Units available for sale = 30 + 25 + 29 = 84 units
Units in inventory = 84 - 60 = 24 units
Cost of inventory = 24 * $20 each = $480