Exam 10: Recording and Evaluating Revenue Process Activities

Accounts receivable written off during the year totaled $61,500 while the beginning and ending balance of Allowance for Doubtful Accounts were $51,300 and $55,700,respectively.The amount of uncollectible accounts expense for the period was:

Worldwide Resources,Inc.reported sales revenue of $525,000,beginning and ending accounts receivable of $43,200 and $37,600,respectively,and beginning and ending customer deposits of $20,000 and $28,500,respectively.Cash collections from customers during the year were:

The journal entry to remove a specific customer's account,once it identified as uncollectible,would ______ net accounts receivable.

Gillman Company maintains a perpetual inventory system and uses the FIFO method of inventory costing.Gillman reported the following events during the month of May: Assume Gillman sells each unit of inventory for $225. Required: 1.Make the entries for May 5 and May 8 assuming all purchases and sales are made on credit. 2 Determine the cost of goods sold and the gross margin for May 3.Determine the number of units in ending inventory. 4.Determine the cost of the ending inventory at May 31.

The inventory costing system that charges inventory to cost of goods sold in chronological order of its purchase is referred to as:

Use the following to answer questions Convisor Company has a perpetual inventory system and uses the LIFO method of inventory costing. Convisor reported the following events during the month of June: -The ending inventory on June 30 is:

Uncollectible Accounts Expense and Allowance for Doubtful Accounts are shown on the:

Magnesium,Inc.gathered the following information at the end of each of its three most recent fiscal years: Determine the amount of cash received from customers for all accounting periods for which sufficient information is given.

One example of a contra-revenue account is:

What is the International Accounting Standards Board' s position on LIFO and would be the impact on US accounting if it switched to IASB standards?

The account "Advances from Customers" is a(n):

What is a revenue and what determines when revenues should be recorded? Give an example of a revenue.

A transaction involving the receipt of a $10,000 by a CPA prior to any works being performed on behalf of the client would:

Use the following to answer questions Ashland Company has a perpetual inventory system and uses the FIFO method of inventory costing. Ashland had a beginning inventory of 50 units and reported the following events during the month of June: -The cost of goods sold for the June 5 sale is:

According to generally accepted accounting principles,the objective in choosing a cost flow assumption is "matching of appropriate costs against revenues in order that there may be a proper determination of the realized income" [ARB43,ch4,¶4].In light of this statement,is FIFO or LIFO more appropriate? Justify your answer.

The IRS requires that any firm using ______ for tax purposes must use ______ for financial statement reporting purposes.

If beginning inventory is too big which of the following statements is true?

In the following journal entry,revenue is being recognized:

A cash sale would impact the:

For the collection process,which of the following sequences of events is correct?