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1. What is the maturity value of a60-day, 9% note for $6,000? (Points : 1) $6,54

ID: 2505241 • Letter: 1

Question

1. What is the maturity value of a60-day, 9% note for $6,000? (Points : 1)

$6,540


$6,000


$6,090


$5,910












2. The allowance method of accountingfor receivables that appear to be uncollectible: (Points : 1)




records an expense for uncollectible receivables in advance of their actual

write-off.


is rarely used in practice


results when a company sells its receivables


All of these choices are true of the allowance method











3. Businesses that sell most of their

goods or services for cash and accept only credit cards would use

which method of accounting for uncollectible receivables? (Points :





The direct write-off

The allowance method


Either the direct write-off or the allowance method


These businesses would not use any method as they have no bad

debts











4. When the estimate based on the

sales approach to estimating uncollectibles is used: (Points :1)




any

existing balance in the allowance for doubtful accounts is not

taken into consideration.

any

existing balance in the allowance for doubtful accounts must be

taken into consideration.

only

a credit balance in the allowance for doubtful accounts must be

taken into consideration.

only

a debit balance in the allowance for doubtful accounts must be

taken into consideration.











5. Accounts Receivable has a balance

of $378,000 and the Allowance for Doubtful Accounts has a positive

balance of $1,200 at fiscal year end prior to adjustment. If the

estimate based on the sales approach to estimating uncollectibles

is $13,780, the amount of uncollectible accounts expense is

__________. (Points : 1)




$14,980


$12,580


$13,780


$1,200












6. Which of the following types of

inventory accounts do manufacturing companies have? Work in

Process, Material or Finished Goods? (Points : 1)




Yes,

Yes, Yes

No,

Yes, Yes

No,

Yes, Yes

No,

Yes, No











7. When the first-in, first-out (FIFO)

method is used to value inventory, cost of goods sold: (Points :

1)




is

made up of the earliest costs.

is

made up of the most recent costs.

is

made up of the average of earliest and most recent costs.

None

of the above











8. Use the following data to calculate

the cost of ending inventory under Average Cost.



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(Points : 1)




$750


$825


$675


$600












9. Which inventory cost flow

assumption would value ending inventory at more recent costs?

(Points : 1)




LIFO


FIFO


Average


Specific

Identification











10. Use the following data to value

inventory under the lower of cost or market rule, applied on an

individual basis.


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(Points : 1)




$6,700


$6,000


$5,900


$6,800






What is the maturity value of a60-day, 9% note for $6,000? (Points : 1) $6,540 $6,000 $6,090 $5,910

Explanation / Answer

1. What is the maturity value of a60-day, 9% note for $6,000? (Points : 1)

=6000*9%*(60/360)

=$6090




2. The allowance method of accountingfor receivables that appear to be uncollectible: (Points : 1)

= records an expense for uncollectible receivables in advance of their actual

write-off.




3. Businesses that sell most of their

goods or services for cash and accept only credit cards would use

which method of accounting for uncollectible receivables? (Points :

= These businesses would not use any method as they have no bad

Debts





4. When the estimate based on the

sales approach to estimating uncollectibles is used: (Points :1)

= any

existing balance in the allowance for doubtful accounts is not

taken into consideration.





5. Accounts Receivable has a balance

of $378,000 and the Allowance for Doubtful Accounts has a positive

balance of $1,200 at fiscal year end prior to adjustment. If the

estimate based on the sales approach to estimating uncollectibles

is $13,780, the amount of uncollectible accounts expense is

__________. (Points : 1)

= 1200 + 13780

=14980





6. Which of the following types of

inventory accounts do manufacturing companies have? Work in

Process, Material or Finished Goods? (Points : 1)

=Yes,

Yes, Yes




7.
When the first-in, first-out (FIFO)

method is used to value inventory, cost of goods sold: (Points :

1)

= is

made up of the earliest costs.






8. Use the following data to calculate

the cost of ending inventory under Average Cost.

= no image sorry

Give me the details I will solve it

9. Which inventory cost flow

assumption would value ending inventory at more recent costs?

(Points : 1)

= FIFO






10.
Use the following data to value

inventory under the lower of cost or market rule, applied on an

individual basis.

= no image sorry

Give me the details I will solve it




Question 8 & 10 do not contains anty details. the image is not valid.

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