Advanced Accounting Chs 5-9 Review

A business has terms of 2/10, n/30. Its accounts receivable turnover ratio is 13.5 The days’ sales in accounts receivable for payment is (rounded to the nearest day)

• 4 days

• 27 days

• 28 days

• 26 days

Betz Barista's signed a 90-day, 12% note for $7,800.00 on June 14. The maturity date of the note is

• September 10

• September 12

• August 10

• October 12

Kotsalos, Inc., purchased a truck that it expects to drive 120,000 miles over its useful life. The cost of the truck is $55,000.00, and its estimated salvage value is $17,000.00. The company plans for a useful life of 5 years. The depreciation rate that would be used for the units-of- production method is

• $0.32 per mile

• $0.46 per mile

• $0.33 per mile

• 32%

The accounting concept that supports the accounting for uncollectible accounts receivable and warranty expenses is

• Materiality

• Going Concern

• Consistent Reporting

• Matching Expenses with Revenue

On January 1, Item A had 800 units in inventory at a unit price of $6.00. The first purchase during the year was 800 units at $8.00 per unit. The second purchase was 800 units at $9.00. The December 31 inventory consisted of 1,200 units. The market price is $11.00.

What is the Cost of Ending Inventory using LIFO?

• $13,200.00

• $9,600.00

• $10,400.00

• $8,000.00

On January 1, Item A had 800 units in inventory at a unit price of $6.00. The first purchase during the year was 800 units at $8.00 per unit. The second purchase was 800 units at $9.00. The December 31 inventory consisted of 1,200 units. The market price is $11.00.

What is the Cost of Ending Inventory using FIFO?

• $13,600.00

• $13,200.00

• $10,400.00

• $8,000.00

On January 1, Item A had 800 units in inventory at a unit price of $6.00. The first purchase during the year was 800 units at $8.00 per unit. The second purchase was 800 units at $9.00. The December 31 inventory consisted of 1,200 units. The market price is $11.00.

What is the Weighted Average Unit Price?

• $11.00

• $7.67

• $13.14

• $7.00

An asset’s value for property tax purposes is known as the

• assessed value

• book value

• salvage value

• taxable value

A customer returns goods and receives a $40.00 gift card. The customer immediately uses the gift card to purchase $25.00 of goods. The amount of sales to be recorded is

• $40.00

• $20.00

• $25.00

• $15.00

The debit balance in Allowance for Uncollectible Accounts is $600.00. Based on an aging of accounts receivable, the company expects that $4,000.00 of accounts receivable will become uncollectible. The amount of the adjusting entry to Allowance for Uncollectible Accounts will

• $4,000.00

• $4,600.00

• $3,400.00

• 600.00