D)eA company borrowed $80,00 fom a bank by signing long-term note payable The jo
ID: 2587087 • Letter: D
Question
D)eA company borrowed $80,00 fom a bank by signing long-term note payable The journal the transaction would be recorded in is the: 6) A) Sales journal. B) Purchases journal. C) General journal. D) Cash disbursements journal. E) Cash receipts journal. 7) A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $375,000 debit 500 credit 800,000 credit All sales are made on credit. Based on past experience, the company estim amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? ates that 0.6% of net credit sales are uncollectible. What 7) A) S1,775 B) $4,500 C) $4,800 D) $1,275 E) $5,500 8) I f a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should 8) A) Deduct the deposit from the bank statement balance. B) Add the deposit to the book balance of cash. C) Deduct the deposit from the September 30 book balance and add it to the October I book balance. D) Send the bank a debit memorandum. E) Add the deposit to the bank statement balance. 9) Which of the following events would cause a bank to debit a depositor's account? ) There are outstanding checks drawn on the account at month-end. B) The depositor orders new checks through the bank at a cost of $50. C) The bank corrects an error from previous month by adding $75 to the depositor account. D) The bank collects a note receivable and related interest on the depositor's behalf. E) There are deposits in transit on the account at month-end. rchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a 10) Marlow Company salvage value of $400. What would be double-declining-balance method? 10) the depreciation expense for the second year of its useful life using the A) S680.B) S600. C) $300.D) $544.E) $480. 11) Cash equivalents meet all of the following criteria except: 11) A) Short-term U.S. treasury bills B) Have a market value that is not sensitive to interest rate changes C) Short-term investments purchased within 3 months of their maturity dates D) Readily convertible to a known cash amount. E) More liquid than cash.Explanation / Answer
Note: As per guidline I have answer first four question.
Correct Answer Explanation 6) E. Cash receipts Journal Borrowing of $80000 from a Bank by signing a Long-term note payable results in inflow of cash so it should be recorded in the Cash receipts Journal. 7) C. $4800 Bad debt = Net sales* Estmated bad debts %= 800000*0.6%=$4800 8) E) Add the deposit to the bank statement balance. Because it is not added in bank balance. 9) B)The depositor orders new checks through the bank at a cost of $50. In this case depositor is debtor for bank.Related Questions
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