Exam 6: Receivables and Inventories

On the basis of the following data related to current assets for Mission Co.at December 2010,prepare a partial balance sheet in good form.

In reference to a promissory note,the person who is to receive payment is called the

Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year,and uncollectible accounts expense is estimated at 1% of net sales.If net sales are $300,000,the amount of the adjustment to record the provision for doubtful accounts is

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

During inflationary periods,the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method.

Allowance for Doubtful Accounts has an unadjusted balance of $500 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?

The net realizable value is used for purposes of valuing out-of-date merchandise in inventory.

A 60-day,12% note for $15,000 dated May 1 is received from a customer on account. The maturity value of the note is

Allowance for Doubtful Accounts has an unadjusted balance of $1,100 at the end of the year,and an analysis of customers' accounts indicates doubtful accounts of $12,900.Which of the following records the proper provision for doubtful accounts?

The estimate based on the sales method violates the matching principle.

The two most widely used methods for determining the cost of inventory are

What type of account is Allowance for Doubtful Accounts?

If the cost of an item of inventory is $60 and the current replacement cost is $65,the amount included in inventory according to the lower of cost or market is

Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.

A 90-day,8% note for $10,000 dated May 1 is received from a customer on account. The maturity value of the note is

During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of merchandise sold is

Allowance for Doubtful Accounts is listed on the balance sheet under the caption

The due date of a 60-day note dated July 12 is

If merchandise inventory is being valued at cost and the purchase price is steadily falling,which method of costing will yield the largest gross profit?

The due date of a 60-day note dated July 10 is September 9.