Exam 10: Recording and Evaluating Revenue Process Activities

A transaction involving the receipt of a $10,000 retainer by an attorney's prior to any works being performed on behalf of the client would:

Explain how the write off of an accounts receivable will not affect the amount of net accounts receivable.

Which of the following would be part of the entry to record a sales return?

Sedlacek Corporation reported sales revenue of $785,000,accounts receivable of $42,600 at the beginning of the year,and accounts receivable of $66,200 at the end of the year.Cash collections from customers during the year were:

Which of the following revenue process events is a business but not accounting event?

Libretto,Inc.,uses the FIFO method and had ending inventory for 2010 of $35,000.If Libretto had used the LIFO method,its ending inventory would have been $32,000.Assume equal beginning inventories for the two methods.If Libretto had used the LIFO method instead of the FIFO method in 2010,how would its income before income tax have changed?

The journal entry to record a sales discount taken by a customer would include:

In times of rising prices,______ generally result(s)in the ______ cost of goods sold.

The journal entry to record a customer's payment within the discount period would include a:

In the following journal entry,revenue is being recognized: Cash XXX Customer Deposit XXX

On December 1,2010,Commonwealth Industries received a $10,000 deposit from a customer for a special order of merchandise to be manufactured and shipped in February,2011.Commonwealth made the following journal entry on December 1,2010: The financial statements dated December 31,2010,would be:

Carpenter Company had a beginning and ending allowance for doubtful accounts balance of $13,000 and $15,000,respectively.Its beginning and ending accounts receivable balances were $75,000 and $83,000,respectively.If $16,000 of accounts were written off during the period,what was net accounts receivable at the end of the period?

Which of the following does not indicate that a revenue has been realized?

Briefly describe the makeup of ending inventory under the FIFO and LIFO methods.

The inventory method that results in the highest net income during periods of rising prices is

On December 31,2010,Aurora Enterprises failed to make the necessary adjusting entry for estimated uncollectible accounts.This error would cause an:

In December 2010 the Farmer Corporation developed a sales budget for January 2009 that estimated the sale of 3,500 units at $200 per unit with a cost per unit of $124.On February 2 the report for January sales indicated that 3,650 units were sold at a sales price of $190 at a cost of $110.Given this information,calculated the sale price variance and the sales quantity variance for January sales and indicate whether they are favorable or unfavorable.What is your assessment of January's performance?

A firm has accounts receivable of $100,000 and allowance for doubtful accounts of $15,000.How will this be reported on the financial statements?