Exam 6: Receivables and Inventories

Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

The inventory data for an item for November are: -Using the first-in,first-out method,what is the cost of the merchandise inventory of 30 units on November 30?

The difference between the total receivables and the balance in Allowance for Doubtful Accounts at the end of a period is referred to as the net realizable value of the accounts receivable.

During inflationary periods,the use of the FIFO method of costing inventory will yield an inventory amount for the balance sheet approximating the current replacement cost.

Determine the due date and amount of interest due at maturity on the following notes:

The balance of the allowance for doubtful accounts is deducted from accounts receivable on the balance sheet.

The maturity value of a 12%,60-day note for $5,000 is $5,100.

Use the following data to calculate the cost of ending inventory under average cost method.

A written promise to pay a sum of money on demand or at a definite time is called a(n)

At the end of a period before the accounts are adjusted,Allowance for Doubtful Accounts has a balance of $250,and net sales on account for the period total $500,000.If uncollectible accounts expense is estimated at 1% of net sales on account,the current provision to be made for uncollectible accounts expense is $4,997.50.

The two methods of accounting for uncollectible receivables are the allowance method and the

The units of Product YY2 available for sale during the year were as follows: There are 15 units of the product in the physical inventory at March 31.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Allowance for Doubtful Accounts is a contra-equity account.

In valuing damaged merchandise for inventory purposes,net realizable value is the estimated selling price less any direct cost of disposition.

Beginning inventory,purchases,and sales for Product XCX are as follows: Assuming a perpetual inventory system and the first-in,first-out method,determine (a)the cost of the merchandise sold for the October 30 sale and (b)the inventory on October 31.

Allowance for Doubtful Accounts has an unadjusted balance of $800 at the end of the year,and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000.Which of the following records the proper provision for doubtful accounts?

Merchandise Inventory is presented on the balance sheet in the current assets section.

The use of the lower of cost or market method of inventory valuation increases the gross profit for the period in which the inventory replacement price declined.

When the estimate based on analysis of receivables is used,income is reduced when a specific receivable is written off.

Receivables are usually a significant portion of