Exam 7: Reporting and Interpreting Cost of Goods Sold and Inventory

In 2012,C Co.reported net sales revenues of $19.8 billion and cost of goods sold for $6.0 billion.What was their gross profit percentage for 2012?

Deposits in transit to the bank have not been recorded in the depositor's books but they have been recorded by the bank.

Near the end of 20B,the ledger of Dice Company included the following accounts and balances: Cash collections on trade receivables during 20B amounted to $148,500.Sales revenue during 20B amounted to $200,000,of which 75% was on credit,and it was estimated that 2% of the credit sales made in 20B would ultimately become uncollectible.Before adjusting entries were made for 20B,(a)a $600 account was determined to be uncollectible and written off by Dice and (b)bad debt expense was recorded to 20B.These adjustments are not reflected in the account balances above. After the above entries were posted to the ledger,the account balances were as follows (give the amount under the appropriate debit or credit column):

A company had the following partial list of account balances at year-end: What amount of Net Sales would be shown on the income statement?

Under the completed contracted method of accounting for long-term construction projects,revenue is not recognized until the project is complete.

"Toys 4 U" has reported the following information on their income statements for the years 2006 through 2010: 1.Compute the gross profit percentage for a.2012 ___________ b.2011 ___________ c.2010 ___________ d.2009 ___________ e.2008 ___________ 2.Has the gross profit ratio for "Toys 4 U" improved over time or worsened? Explain your reason.

A credit sale of $2,500,terms 1/20,n/30,should be recorded with which of the following journal entries?

Sales returns and allowances should be deducted from sales revenue when computing net sales.

In 2012,A Co.reported product sales revenue of $2,514.4 million and trade receivables of $319.9 million for 2012 and $269.0 million in 2011.What was the cash flow generated by sales?

The gross profit percentage is computed by taking operating profit divided by net sales.

Which of the following accounts is always treated as a contra revenue and not as a selling expense?

The WD Co.reported revenue of $23,402 million for 2012.Their trade receivables balance was $3,999 million in 2012 and $3,633 million in 2011.How much cash was collected from customers?

Red Company received the following October 31,20C,bank statement: The cash account reflected the following for October: The September 30 bank reconciliation showed: Deposits in transit,$3,000,and outstanding cheques,$500. Required: A.What was the amount of the deposits in transit at October 31? B.What was the amount of outstanding cheques at October 31? C.Prepare a bank reconciliation for October.Use the following format: D.Give the journal entries that should be made by Red Company based on the bank reconciliation.

Upon completing an aging analysis of trade receivables,the accountant for Rosco Works estimated that $5,000 of the current $98,000 of trade receivables would be uncollectible.The allowance for doubtful accounts had a $400 credit balance at year-end prior to adjustment.What amount of bad debt expense should appear in Rosco's income statement for the year?

When completing a bank reconciliation,bank service charges should be added to the cash balance appearing on the bank statement.

The net realizable value of trade receivables can be computed by subtracting the balance in allowance for doubtful accounts from the balance in trade receivables.

The lower the receivables turnover,the more effectively the company has managed their credit granting and collection activities.

Under the percentage of completion method,the amount of work completed in a particular year is typically determined by comparing which of the following?

Merchandise was sold on credit for $3,000,terms 1/10,n/30.The entry to record the cash collection should include which of the following?

The following information was available to the accountant of Midland Company when preparing the monthly bank reconciliation: What is the corrected cash balance per books following completion of the reconciliation?